The upward trend in the real estate market continues in Croatia. It is practically impossible for a person without substantial savings to buy or rent an apartment in the capital. Prices rose by nearly 15 per cent in one year, figures released by the Croatian Bureau of Statistics show.

Real estate prices in Zagreb rising since 2017

The demand for apartments in Zagreb is huge, pushing prices further up. For example, a 40-square-metre flat in a residential area of Croatia’s capital sells for 150,000 euros, but there are properties with a much higher price tag.

Real estate prices hit a new high in Croatia last year, according to official data, and the same tendency is visible on the market early this year. The prices of residential buildings in Croatia rose by an average of 2.8 per cent in the third quarter of last year compared to the previous quarter, with the annual price increase reaching 14.8 per cent, as shown by data put out by the Croatian Bureau of Statistics. Thus the trend that began in the second quarter of 2017 continued, with the price of real properties in the Western Balkan state steadily rising.

Even steeper price increases were seen on the market of newly-built real estate compared to data from a year ago. If we compare only the second and the third quarter of 2022, the increase is 2.6 per cent but compared to 2021, we find a year-on-year increase of 17.4 per cent. Those who invested in the housing business in time have earned nearly 18 per cent in one year.

“Price shock” on the housing market

The new state subsidy to purchasing real estate may also be contributing to the increase in prices, experts say. The programme may cause another “prices shock” on the market, they add.

A huge price increase can be experienced in the market, according to the owner of a real estate agency. Another agent agrees. Peda Kovacevic adds: almost everything is available on the supply side, except for flats, as there is a shortage of them.

The V4NA news agency also inquired about the prices of flats in Zagreb. Our research shows that, for example, a flat of 71 square metres in a newly built apartment block costs 182 thousand euros. It is expected to be ready for the new owners in 2023.

More expensive apartments can also be found with a brief search. There is, for example, an 80-square-metre flat on the third floor of a 5-storey building and it will only be ready by 2024. The property is offered for a price of 350 thousand euros.

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Flats in older buildings, however, also come at hefty prices. For example, the asking price of a two-room, 50-square-metre apartment in a building dating from 1965 is 135 thousand euros.