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Real Estate Prices in Zagreb Decrease by an Additional 0.8 Percent

The average asking price of real estate in Croatia in November decreased by 0.3 percent compared to October, while on an annual basis, compared to November 2008, asking prices have fallen by 5.2 percent, reported CentarNekretnina, taking into account more than 274 thousand asking prices.

In the most significant market, Zagreb, asking prices for real estate decreased by an additional 0.8 percent compared to the previous month, and on an annual basis, they are down by 5.3 percent. On the Adriatic, after a decline over the past five months, asking prices for real estate in November increased by 0.3 percent, while on an annual basis they fell by 5.0 percent. Domenico Devescovi, head of CentarNekretnina, notes that, in accordance with their forecasts, the correction of asking prices for real estate in Zagreb continues. In November, a slight increase in asking prices was recorded on the Adriatic, but for a trend reversal, it is necessary for the growth to continue in the coming months.

By the end of the year, CentarNekretnina expects the continuation of the correction of asking prices for real estate in Zagreb and on the Adriatic. The average asking price for an apartment in Zagreb in November was 1,881 euros per square meter, which is a decrease of 1.1 percent compared to the previous month, or a decrease of 6.9 percent compared to November 2008. Apartments in the center remain the most expensive with an average price of 2,426 euros/m2. The lowest apartment prices are in Dubrava, where the average price is 1,517 euros/m2. Compared to apartments in Zagreb, the price per square meter of houses is on average 30 percent lower. The average asking price for m2 of houses in Zagreb and the surrounding area in November was 1,309 euros, which means it has hardly changed compared to the previous month (0.2 percent).

Compared to November 2008, or on an annual basis, asking prices for houses have increased by 0.9 percent. A comparison of asking prices for apartments in Zagreb in November this year with November last year shows a decline in almost all parts of the city. The largest decline was recorded in Dubrava at 11.1 percent, and in the eastern part of the city where prices fell by 9.1 percent on an annual basis. The smallest decline in asking prices on an annual basis in Zagreb was recorded for apartments in the north (by 2.8 percent) and the southwest of the city (2.2 percent).(H)