Compared to the situation six months ago, apartment sales in Osijek have fallen by 90 percent. Builders are not lowering square meter prices due to increased construction costs, citizens cannot access funds for purchases due to the blockage of credit resources, and real estate agencies are closing their doors, writes Novi list.
– The state of the real estate market in Osijek is catastrophic. Sales in 2009 have fallen by 90 percent. Builders are suffering huge losses as apartments in new construction are hardly selling anymore. Namely, they cannot lower square meter prices due to increased construction costs. Land and utilities have become more expensive, and new contributions have also been introduced. They have now reached a point where their construction cost per square meter is around one thousand euros, so selling apartments at a price of 1,100 euros means breaking even, and anything below that price is an absolute loss. On the other hand, due to the economic crisis, people can no longer obtain enough credit resources to cover the square meter price of that minimum 1,100 euros. And this has led to a blockage of the market – explains Nikola Matijević, adding that so far only one builder has lowered the square meter price. (www.novilist.hr)
