Despite the decline in sales, creal estate prices continue to rise.Apartments in Split remain among the most expensive in the country and are now reaching record levels.
"Currently, prices are the highest in history," Marin Bilishkov, director of the real estate agency, tells the Croatian edition.We have just started selling a new project in an exclusive location in Split.Construction has just begun, and prices range from 7,500 to 10,000 euros per square meter.
In a country where the average monthly salary is about 1,500 euros, for most locals the price of 10,000 euros per square meter is sky-high.And now, it seems, even foreign buyers are starting to experience difficulties.
Too expensive even for foreigners
According to Dubravko Ranilovic, President of the Association of Real Estate Business at the Croatian Chamber of Commerce and Industry (HGK), the downward trend in interest from foreigners has been going on for some time.
"With the beginning of economic and political instability in Europe, we are witnessing a decrease in both the number of transactions and the interest from foreigners.The constant rise in prices also contributes to this," Ranilovich explained.
Citizens of Germany, Austria and Slovenia, who were once the most active, now show less interest in purchasing housing in Croatia.
Trend reversal after record-breaking 2022
A reduction in purchases by foreigners was first observed in 2020, during the pandemic.This was followed by two years of growth, which led to a record high in 2022, after which the current recession began.If this trend continues until the end of this year, the drop compared to last year will be even more significant.
Real estate experts expect that the years of constant price growth, which has been one of the most significant in Europe, may soon come to an end. "We can expect prices to stabilize and some correction, especially in relation to secondary real estate."
Source: Croatia News
