The government has sent a proposal for a law on incentives for the purchase of the first apartment to the Parliament as a matter of urgency. The monthly installment amount that the buyer will repay to Croatia after 20 years of waiting is 221 euros.
The loan will be granted for apartments priced no higher than 1600 euros per square meter, with interest rates during the waiting period set at two percent per year and fixed. However, the interest rates during the repayment period will be 10 percent. Prime Minister Jadranka Kosor stated that this law aims to assist both builders and first-time homebuyers. Analysts believe that this government move will not resolve the fundamental issue, which is maintaining high apartment prices in conditions where there is a significant imbalance between supply and demand. With the onset of the recession, apartment sales have drastically fallen, and it is estimated that there are over 10,000 unsold apartments in the Zagreb market alone. At the same time, prices have only slightly decreased. Builders and property owners are persistent in maintaining high prices. (www.hrt.hr)
