Croatia Leads a Small Group of EU Countries with Declining Real Estate Prices in 2015

In the fourth quarter of 2015, real estate prices in Croatia, measured by Eurostat’s real estate price index, decreased by 2.1 percent compared to the same period of the previous year. In the third quarter of 2015, they fell by 3.0 percent, according to a report released by Eurostat on Tuesday.

In the last quarter of 2015, Croatia led a small group of European Union countries that recorded a decline in real estate prices compared to the same period of the previous year, according to data from the European statistical office.

In the fourth quarter of 2015, real estate prices in Croatia, measured by Eurostat’s real estate price index, decreased by 2.1 percent compared to the same period of the previous year. In the third quarter of 2015, they fell by 3.0 percent, according to a report released by Eurostat on Tuesday. Among EU countries, the decline in real estate prices was also recorded by Italy, by 0.9 percent, and Cyprus, by 0.6 percent.

In the last months of 2015, real estate prices increased the most in Sweden, by 14.2 percent, followed by Hungary, by 10.3 percent, and the United Kingdom, by 7.1 percent, reported the statistical office. At the EU level, prices in the last quarter of last year increased year-on-year by 3.8 percent. Eurostat also slightly revised the growth rate in the third quarter of 2015 upwards, which now stands at 3.1 percent. The increase in real estate prices was also intensified at the end of last year in the eurozone, to 2.9 percent, after they had increased by 2.2 percent in the previous quarter according to Eurostat’s revised estimates compared to the same period in 2014.

Significantly Slowed Growth of Prices on a Quarterly Basis

Compared to the previous quarter, real estate prices in Croatia remained almost unchanged in the last three months of 2015, recording an increase of only 0.1 percent. From July to September, they increased by 0.7 percent, according to Eurostat data. This places Croatia in a group with Finland, which recorded the same slight percentage increase in real estate prices on a quarterly basis, as well as with Germany, where prices rose by 0.2 percent, but also with Spain and Slovenia, where prices stagnated on a quarterly basis. The highest increases compared to the previous quarter were recorded in Bulgaria, by 3.1 percent, Latvia, by 2.3 percent, and Sweden, by 2 percent.

The largest decline in real estate prices in the fourth quarter of 2015 compared to the previous three months was recorded, according to available Eurostat data, by Cyprus, by 4.2 percent, Lithuania, by 2.1 percent, and Austria, by 1.7 percent.

At the EU level, real estate prices increased by 0.2 percent in the last three months of last year compared to the previous quarter when they had increased by 1.4 percent according to Eurostat’s revised data. In the eurozone, real estate prices stagnated compared to the previous quarter when they had increased by 1.0 percent, according to Eurostat estimates.