Construction Land Prices Drop by 10 to 25 Percent

Data analysis from the portal Crozilla.com shows that construction land prices did not experience significant changes in November. The largest monthly difference, as well as the greatest price drop, was felt in construction land in the Zadar County.

Prices of land there fell to 126 euros, which is 5.3 percent lower than the previous month. The Zagreb County continues to lower the prices of its already affordable land. In November, the prices of those plots fell by 4.7 percent, making the average advertised price per square meter 81 euros. According to data from the portal Crozilla.com, construction land prices in the city of Zagreb and the Primorje-Gorski Kotar County remained the same in November as in October. The prices of Zagreb’s construction land this month are 215 euros per square meter, while land in the Primorje-Gorski Kotar County could be purchased for 114 euros.

Average advertised prices for construction land in the Split-Dalmatia County recorded a decrease of 0.5 percent in November, with a square meter costing 183 euros, which is just one euro less than in October. An increase in construction land prices is only visible in the Istria region, where the listed prices rose by 2.3 percent, reaching 86 euros per square meter.

Domestic visitors to the portal Crozilla.com showed the most interest in construction land in the city of Zagreb and Zagreb County, followed by the Istria region and Zadar County. Foreigners, on the other hand, show the greatest interest in land in the Split-Dalmatia County, followed by Zadar and Šibenik-Knin counties, while land in the city of Zagreb ranks fourth in terms of the number of foreign potential buyers. Data from the portal Crozilla.com for November shows that the most numerous foreign visitors interested in purchasing construction land come from Switzerland, Germany, Austria, Sweden, Slovenia, and the United Kingdom.

Prices are dropping by 10 to 25 percent
Advertised prices have almost always been stated by sellers as higher than they actually are, but in the case of selling real estate, they are willing to accept significant ‘discounts’. In order for the land to be sold, sellers often lower the price by up to 25 percent. According to Vice Šantak from the Rivalitas agency, the sale of construction land stagnated throughout 2010. The reason for this, Šantak believes, is that sellers are still trying to maintain prices as they were before the crisis, while investors are not willing to pay as much, as purchasing construction land today for the purpose of building apartments is a risky business. ‘Every seller who wants to sell their property must be aware that they need to be flexible regarding the price. Prices are dropping by 10 to 25 percent. This, of course, applies to land that is advertised at initial realistic prices,’ commented Vice Šantak from the Rivalitas agency for the portal Crozilla.com.

Due to the large number of unsold apartments, interest in purchasing large plots for new buildings has decreased, but land for building family homes is always attractive, especially now that their prices have fallen. Builders believe that the time is right to purchase construction plots for building their own homes.