Croatian real estate agencies were a part of a research which determined that the difference between wanted and achieved prices is around 15%. This was a result from contacts with investors and sellers, and some agents even think that these would still make money if they lowered the prices down by 20%.
Most agencies agree with their customers who say that the prices are too high and based on unrealistic expectations. The gap between wanted prices and those that are achieved in the end has been steadily growing for the past two years, but it is not realistic to expect further significant price drops till Autumn because there is simply not enough room for that, especially if we are talking about real estate that has a certain level of quality. If you have found your real estate in Croatia and it suits all of your needs, than you should buy it now. Another problem with real estate prices in Croatia lies in the fact that they are often determined according to data displayed on different internet ad sites, but these prices are rarely final selling prices in the end.
One more thing to consider is that the apartment prices in Croatia are linked to land prices and there is no room for further price drops in the long run with present land prices. If you are still waiting for price drops in the range of 30-40% which were announced at the beginning of this year, than you are in for a disappointment. Those expectations often came from unreliable sources and it most certainly won’t come to that. One more absurdity is that the prices of old apartments are to similar to newly built ones. This is an area in which there could be some corrections. Most agencies also believe that the government and the banks could influence the market, primarily through interest rates and taxes.