Housing prices in Croatia will continue to rise, but at a slower pace, according to market experts quoted by The Dubrovnik Times.
Vedrana Lican from Colliers said that recent data indicate a steady upward trend in apartment and house prices, especially in new projects, and that market conditions currently do not suggest a reversal of this trend. "We expect prices to show a slight upward trend," Likan said.
Despite the price increase, the market has slowed down, as evidenced by a decrease in the number of transactions. Accessibility remains a major problem throughout the European Union, including Croatia. Likan stressed that the Croatian government, as the owner of a significant amount of real estate, especially land suitable for new housing construction, must recognize its role and responsibility in solving the affordability crisis.
Likan also reported that in 2024, Croatia saw a sharp decline in commercial real estate investment by 65% compared to the previous year, to about 240 million euros. This includes office buildings, hotels, warehouses, and shopping malls that generate revenue. The downturn was not unexpected, given the trends in global and European markets, but it turned out to be more severe than expected.Croatia currently has a historically low level of office space availability, with only about 2% of office space empty. This shortage is pushing rental prices up. Obstacles to new office developments include high land prices, unresolved property and legal issues, high construction costs, labor shortages, expensive materials, and expensive financing options.
Lycan noted that demand in all segments of commercial real estate is so high that it remains unclear whether current and upcoming developments will be sufficient to meet the needs of the market.Boro Vujovic, director of the Opereta real estate agency, supported the view that, given inflation and demand outstripping supply, a fall in housing prices is unlikely. Instead, prices are expected to remain stable or rise slightly compared to last year. Due to high demand and limited new construction, even old apartments are being sold at "possibly unreasonably high prices," Vujovic noted.
Source: The Dubrovnik Times
