Real estate prices in Croatia have risen rapidly in recent months, even twice the average in the European Union. It is up 10.4 percent year-over-year. Except Croatia, such growth was also recorded in Hungary, by 14%, Luxembourg by 11.4% and Portugal by 10.1%. No EU countries reported a quarterly price drop.
Although real estate prices have increased rapidly, there is an unevenness – for example, for the price of a garage in Dubrovnik, you can buy a house in Slavonia, for example in Vukovar. The average price per square meter of a flat in Dubrovnik two months ago was as high as 3900 euros, while the price per square meter was 4700 euros.
Although salaries are much lower in Eastern Croatia and fewer residents live there, real estate supply is much higher. In the past year, real estate prices in Slavonia have increased by 3%, in the Adriatic by 9% and in Zagreb by 14.5%. Which means that for an apartment in Zagreb that was advertised for 100,000 euros last year, this year it will find offers up to 114,500 euros.
Real estate prices increased due to the possibility of subsidizing loans, many apartments and houses in the Adriatic have been bought and converted into apartments as a result of the excellent tourist season
The daily newspaper Jutarnji list reported that the upward trend in real estate began to worry the European institutions seriously, bearing in mind that the creation of a real estate boom and the downturn that followed would, as a rule, bring long and deep recessions and great difficulties for households and banks. Although last year’s report appears to be a high-risk country in this regard, with an average growth of 3.5% over the three-year period observed, Croatia classified as a lower-risk country.