To immediately say how things stand with this question: There is no answer! All are divided over this issue – economists, builders, real estate agencies… Nobody offers answers, just ask new questions.
The government has also stepped into the market with incentives, but the initial enthusiasm disappeared after some new questions. Who are all these incentives for? Citizens will not benefit too much, neither will builders, because the possible sale of 1,000 dwellings does not resolve the question of the other 10,000. It seems that only the bankers will benefit. Some analysts even believe that the Government measures cause prices to fall 10-15%, but these are just speculations.
What about all those who have the best insight into the market, real estate agents in Croatia? Their opinions are also divided. About half of them believe that prices will fall, a little less that there will be a long period of stagnation, and only slightly less than 10% that prices will rise. However, it is interesting to return to the previous year when almost two thirds of agents expected a price drop, about a third predicted stagnation, and only just over 1% predicted growth. Something has changed during the last year. Whatever the case, one thing can be said with certainty, and that is that the prices are unlikely to increase, at least for the coming months. As for them dropping, the lower price are actually already there, only not at the required rates, but in realized sales. In addition to general price movements, everything is seen differently depending on location and property type. Some properties just always keep their price, so it is considered that real estate on the Adriatic and vacation cottages will retain value. Everyone also agrees that the cost of new buildings is a bit inflated.
Price drops are also predicted with rent prices, regardless of whether they are houses or apartments, and it already started with significant discounts in commercial real estate. I personally know a couple of small tradesmen who had no problem with lowering the rental price for their offices and facilities. It’s simple: It is better to sacrifice a little than risking that the tradesman leaves you or even perishes. In these economy conditions, it would probably mean a longer term “liberation” of space for an office.
Until when will this uncertainty last? It is difficult to predict, but it is fairly safe to say that entry to the EU should bring some stability to the market.