Real estate prices are down 7 percent and after negotiations they can drop up to 20 percent. However, it is expected that even lower prices are possible only for low-quality real estate. Furthermore, crisis and recession have extinguished more than 40 percent of Croatian real estate agencies.
The 60 percent drop of sales was too much for a large number of agencies and the situation is so bad that some are even considering not organizing some traditional gatherings at which many agents regularly came before. However, information coming from the market related to a decrease of 60 percent say it is not a realistic figure and that after the final analysis at the end of the year this figure will be around a more tolerable figure of 25 percent. Apart from the crisis, the problem is in the fact that opening the market for foreigners did not lead to more positive developments as was expected, but this is likely due to the crisis too.
We could find some joy in the fact that big European countries have started to slowly emerge from recession. The owners of agencies that had a smart business plan endured the crisis and hope that the situation in 2010 will significantly improve in realtion to 2009. Tourist season already helped the agencies on the Adriatic to achieve a certain income and announcements say it should be even better in the coming months.
As for the prices, they have fallen in all parts of Croatia, but further large drop is unrealistic to expect, especially when it comes to quality real estate in desirable locations. Agency owners hope that banks will not just stand on the side when it comes to the real estate market in Croatia, but that they will release the brakes in credit market policies to provide the market with enough money for recovery and development.