Property Investment Croatia | New price equilibrium is expected

Posted on July 29, 2012

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Real estate market is by its characteristics same as any other market and as such is subject to all laws of supply and demand.

This year a lot has changed in the Croatian real estate market. Employment in the country fell, there is a great fear of national currency dropping, jobs are uncertain and loans are impossible to obtain at reasonable interest rates. These circumstances have resulted in falling demand for real estate, especially for apartments. At the same time the number of apartments is very high and is expected to grow even more for some time. To make everything a bit more interesting, many ordinary citizens began to rent flats for they simply no longer have enough money to maintain these apartments in a state of “idle” mode waiting for a sale. This creates a very large offer in relation to demand.

All of this would have to result in falling prices of real estate according to economic laws. In the long term prices should begin to grow again, so you can expect that investors will wake up again.

via Property Investment Croatia | TRASA Real Estate Croatia – Part 6.

Posted in: Croatia