In Central and Eastern Europe, crisis has significantly changed the way of doing business when it comes to residential real estate, but many people are still planning to purchase new property. In fact, research shows that quality housing is still missing.
During the past few years construction of new apartment buildings and houses was in constant growth, but despite this demand was always much greater than supply. Economic growth and wage increases led to a situation that most people, although some were already property owners, sought to improve their housing standards. Given this market situation, there is great potential for further development. In fact, most of the apartments in Croatia and the region was built during socialism so their quality is not nearly at the level of those in European countries. This situation also encourages many to sell their old apartments and buy new ones, which especially applies to some areas on the Adriatic coast and outside the big cities, where new investments in the construction of apartments and houses are expected the most. Unmet demand and weaker quality of housing are the best guarantee that property market in Croatia will not break.
But one should bear in mind that the current macroeconomic situation in the region is favorable as before. Potential for growth still exists, but banks have set new criteria for loans due to high risk, so capital is now unavailable to both citizens and investors. However it is the opinion of most experts that there will be only short-term slowing of the market, while in the long term we can expect stable growth with perhaps a somewhat different price policy.