In the Croatian real estate market, a decline in transactions of between 70 and 80 percent was recorded in January compared to the same month last year, which could close numerous agencies engaged in real estate mediation, assessed today by the president of the Real Estate Business Association within the Trade Sector of the Croatian Chamber of Economy (HGK), Dubravko Ranilović.
Data for the beginning of the year from the real estate market is catastrophic, the recession could sweep us away, and those who survive will certainly work for a long time, said Ranilović at the certificate awarding ceremony for candidates who passed the professional exam for real estate mediation agents. He adds that more than 20 percent of construction companies are in blockade, tourist companies are also in trouble, and all of this reflects on real estate transactions. Ranilović states that real estate prices have fallen, but this has no significant impact on market volume. According to him, the reasons for the decline are difficult financing and recessionary psychosis, and the biggest problem could arise if banks stop financing citizens and project development.
He says that the negative consequences of rising interest rates, stricter lending conditions, and the decline in the kuna exchange rate are already being felt. In his opinion, the Croatian real estate market suffers because banks that are foreign-owned apply lending criteria similar to those in domestic markets, where the crisis is more pronounced. At the certificate awarding ceremony at HGK-Chamber Zagreb, 33 candidates participated who gained the right to be registered in the HGK’s Registry of Real Estate Mediation Agents. HGK is authorized to issue certificates based on the Real Estate Mediation Act adopted in 2007. The law stipulated a deadline of one and a half years from its entry into force, during which agencies must employ an agent certified by HGK. (H)
