Croatia’s real estate market stabilises 

ZAGREB, 19 Oct (Hina) – In the first quarter of 2024, Croatia’s real estate market experienced a slowdown, but activity picked up again in the second quarter, contributing to a stabilisation in demand during the first half of the year, with only a slight decrease in the number of transactions, show data from the real estate agency Opereta.

In the first half of the year, 67,415 recorded real estate transactions were completed, which is 0.86% less compared to the same period last year. There was a 2.07% increase in transactions involving construction land, reaching 12,016, while the number of agricultural land transactions decreased by nearly 3% to 14,776. Sales of flats fell by 7.96%, with 13,339 transactions recorded.

“The first half of 2024 was marked by the announcement of a national housing policy programme. However, specific measures and activities have yet to be released, creating uncertainty about its success and impact on the real estate market. Interest rates on new housing loans have remained fixed throughout the repayment period.

Compared to previous years, rates have stayed at higher but stabilised levels without significant increases in the first half of the year, providing a sense of security to potential borrowers. Future trends will depend on new housing policy measures, tax policies, and interest rate movements,” says Martina Mataić Škugor from Opereta.

Zagreb County saw a 13.5% increase in transactions in the first half of the year, and Primorje-Gorski Kotar County recorded a 16% increase.

While the City of Zagreb continues to lead in terms of the number of transactions nationwide, it saw a 6.5% decline compared to last year. Istria County, which along with Zagreb remains one of the most in-demand areas, experienced a 6.1% drop in transactions.

Zagreb remains the most sought-after area for real estate purchases, with a significant portion of transactions involving first-time homebuyers.

Besides local residents, people from other parts of Croatia often buy flats in the capital, motivated by their children’s education or investment potential. In the first half of this year, the most sold properties were flats up to 65 square metres in size.

“The most in-demand flats in Zagreb are between 45 and 65 square metres, with one bedroom and close to public transport. Flats in Zagreb generally sell within three to four months,” says Jelena Kravoščanec Todorović, noting that the difference between the asking price and the final sale price is 9.1%.