It seems that the financial crisis has struck the Croatian real estate market. Apartment prices will drop, new projects will be delayed and the apartment renting market will blossom. The question is: “Is it time to be patient or invest?” Well, the answer is not that simple!
There is an obvious stagnation of selling in Croatia now. People are more careful when investing their money, but the banks are those who rule the market because their credit policy is now more strict than ever. All of this has led to an increase in the renting market.
Potential buyers still expect that the prices will drop even more and this stagnation may be just what influences the prices enough for them, despite the recent announcements that prices may even rise during the coming crisis. Although, if the prices really fall, the y will not fall so much that you will get an apartment “for free”, it will be a moderate fall. It is imperative to think clearly and look at the realistic value of the real estate you intend to buy. If you ask yourself the right questions, you will find the right answers! Is the real estate you intend to buy undervalued? Does it ensure a profit in the long run? The people who said prices will rise in the future were not stupid, they had their sources and good information too! The market may be polarized by all different prognosis now, as families do not have enough income to sustain an investment, while the people with enough money and financial power see good long term investment opportunities.
Investors are also affected by the crisis. Strict bank policies have influenced activities related to real estate investments in Croatia, which has had a huge influence on the so-called “small” investors, while the “big players” are still able to acquire enough resources due to their financial strength.
All we can advise you at this time is to be patient and wait before buying an apartment if you are “running” on a low income cause all analysts say that the prices will drop in the near future. On the other hand, if your “tank is full” and you are searching for an investment opportunity, then you should definitely consider buying, especially if you take in account the new real estate law in Croatia, but we will tell you more about that in our next article!