The year 2009 brings us less new apartment buildings and a recession in the construction business. This will probably cause a drop in apartment prices, but not in the region of 30% or more like some might have expected. Sure, smaller investors will have to lower their prices more, but the “big players” will do no such thing.
Prices of real estate at the Adriatic coast in 2008 grew 4,6 percent, which is reletively a small amount considering the high growth during previous years. Average price of a square meter is about 2000 euros for weekend houses and apartments, and around 1500 euros for bigger houses. Dubrovnik is still the most expensive location in Croatia. Price of a square meter in the most prestigious town in the Adriatic is 3649 euros for an apartment and a little bit more, 3694 euros, for a house. To cut things short, price index for houses on the Adriatic coast of Croatia is in stagnation and shows a tendency to drop even further in 2009.
We are all in for an interesting and exciting year!