Record Real Estate Market Falls in Croatia in 2013

Croatia’s declining real estate market could make it the record-holder in Europe for falling prices, according to the latest Global Property Guide report…

Real estate prices in Croatia in 2013 have consistently dropped month on month, with apartment prices falling 19.7% from April to June this year compared to the same period in 2012.

“In Croatia’s capital, Zagreb, the average asking price of flats fell by 5.5% during the year to September 2013, to 1,593 EUR per sq. m. When adjusted for inflation, asking prices have declined by 6.6%.”, said property portal CentarNekretnina, before adding.

“Smaller price drops were experienced on the Adriatic Coast, with the average asking price of flats declining by 3.3% during the year to September 2013, to 1,581 EUR per sq.m.”

Property prices in Croatia have been falling for the past four years, although it is not the case for all of Europe.

“In Tallinn, Estonia, the average purchase price of dwellings in Tallinn surged 12.46% year-on-year in Q3 2013, in sharp contrast with the annual drop of 0.86% in the same period last year. In Germany, house prices soared by 9.61% in Q3 2013 from the previous year, up from an annual growth rate of 3.5% in Q2 2013, and an annual decline of 3.32% in Q1 2013. Other strong European housing markets included Denmark, with house prices rising by 6.53% during the year to Q3 2013, Warsaw, Poland (5.13%), Turkey (4.65%), Kiev, Ukraine (3.54%), Switzerland (3.46%), Ireland (3.45%), and Sweden (3.05%). All, except Turkey, showed better performance during the year to Q3 2013. In addition, some European countries saw their house price falls decelerate sharply in Q3 2013 compared to the same period last year. These countries included Bulgaria (-0.21%), Finland (-0.24%), Portugal (-1.55%), Slovak Republic (-2.87%), Netherlands (-4.87%), Zagreb, Croatia (-6.56%), Romania (-7.15%), Greece (-8.85%), and Spain (-9.46%).” said the report.