At today’s press conference of the newly established HUP Association of Employers of Project Managers in Real Estate (developers), the president of the Association, Igor Oppenheim, warned of the alarming situation in the real estate business in Croatia.
– The situation has been further exacerbated by the global crisis, and therefore it was necessary for developers to unite, said Oppenheim. – The rise in land prices, utility and water fees, and other levies, excessive bureaucracy, and the inertia of local governments all ultimately result in increasingly expensive square meters. – emphasizes the president of the Association and adds that something must be urgently done, otherwise, in 2009, investment in real estate will drastically decrease, which will have catastrophic consequences for the entire economy.
– Executive Board member of the Association, Danijel Babić, pointed out that the distrust of banks and the introduction of stricter financing conditions for employers means a continuous reduction in supply, and for buyers, an increase in real estate prices. – Those who make decisions in banks should know that enabling loans for new projects actually means preserving jobs and ensuring the stability of the Croatian economy – emphasizes Babić. The rise in land prices and other fees, as well as the restrictive provisions of the new Spatial Planning and Construction Act, could lead to a decrease in construction and the supply of new apartments, which could lead to a situation like in 2002 when demand far exceeded supply.
