Home rental prices in Zagreb down 20%, sales halt

Zagreb (Photo: Frane Medic)

ZAGREB, April 1 (Hina) – The coronavirus and recent strong earthquakes in Zagreb have led to a fall in rent prices in the capital of up to twenty percent while sales have slowed down drastically, the Vecernji List daily reported on Wednesday.

There are some prospective buyers however their contact is mostly over the phone and of an informative nature, one realtor told the daily. 

Before the outbreak of the epidemic, real estate prices in Zagreb and along the Adriatic coast were increasing by about 10% a year however that trend will temporarily be suspended. No one can be certain how much prices will fall, the daily said.

“We expect real estate prices to fall but it is difficult to estimate just how much. As soon as uncertainty grows, buyers and banks are more cautious,” said Chief Economic Consultant at the Croatian National Bank Vedran Sosic.

There is a risk that salaries will fall, banks will see which activities are requesting loans and whether their employer has been affected and to what extent. People, said Sosic, are focused on more fluid assets.

The centre of Zagreb and environs have been affected by the 22 March strong quakes. According to the city’s authorities 7,000 buildings were damaged in the earthquake and about 30,000 family homes.