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Real Estate Prices Drop by Up to 12 Percent

According to the Real Estate Price Index from the CentarNekretnina portal, prices in July fell both on a monthly and annual basis: the average asking price for an apartment in Zagreb is €1596 per square meter, which is 6.6 percent lower than in July last year, while prices for apartments on the Adriatic have dropped seven percent compared to last year, standing at €1575, with the average price per square meter in Split being €2134. This is 12 percent or €299 less than in July of last year.

Real estate sales in the country are declining, writes Slobodna Dalmacija. Last year, 32,278 apartments were sold in Croatia, which is 52 percent less than in 2007 when 66,787 were sold. In all of Dalmatia, for example, 9,348 properties were sold in 2009, while last year saw a 43 percent decrease to 5,320 houses and apartments.

– It is normal for apartment prices to fall as the market is in collapse; it is not any better, in fact, it is worse than last year when 19 percent fewer properties were sold in Croatia compared to the previous year. Demand is low, and supply is high. Those who want to sell their apartments and houses are lowering prices because there are few buyers. Sales are weak; I had hoped that things would at least improve a little since Croatia joined the European Union, but nothing has happened – said Jasminka Biliškov, Vice President of the Real Estate Business Association at the Croatian Chamber of Economy (HGK).

Jasminka Biliškov states that the realistic average prices for Split are between €2000 and €2100 per square meter. Bačvice and Riva maintain high prices, but those prices have also fallen, as the price per square meter on Riva was once €4500, and now it is around €3500.

There will be no recovery of this market without an economic recovery, analysts agree. Therefore, it is not surprising that today our construction is at the level of the war-torn nineties or that last year’s apartment sales were halved compared to 2007.