The situation in the real estate market in Croatia is somewhat more optimistic than a year ago, but a greater market momentum and potential new investments are expected only at the end of this year and during the next year, according to the assessment of the leaders of the consulting firm Colliers International Croatia presented at today’s meeting with journalists.
Presenting Colliers’ global research on the real estate market conducted among 244 investors worldwide in February and March of this year, Colliers’ Managing Director Vedrana Likan emphasized that investors, both regionally and globally, believe that all markets will trend upwards in the next 12 months, expecting an increase in demand for leasing and the beginning of rent growth. Something similar can be expected in Croatia, although only in certain market segments, such as a possible new investment cycle in the office space market. This assessment at Colliers is based on a significantly better vacancy rate in Croatia (around 6 percent) compared to the region (for example, 20 percent in Hungary).
Although this year will see a continued decline in office space rents of 5 percent, Colliers does not believe that it will go below the average of 13.5 to 14 euros per square meter for a standard 300 square meter so-called Class A space. The decline in rents will also continue in the retail space market, by about 10 percent this year, with no new investments expected, but rather the completion of several projects started two to three years ago (shopping centers in Zagreb, Varaždin, and Osijek). Commenting on the state of that market, especially the situation around shopping centers, Colliers manager Nenad Peris noted that the interest of international tenants in these spaces has increased multiple times compared to the last few years.
