Renters Enjoying Low Prices as Demand Falls

With Croatia’s real estate market continuing to decline, and with many experts predicting that prices have yet to hit rock bottom, those who can not afford their own apartment are currently enjoying affordable rental prices, down 40% since 2008 in some cases, reports daily Večernji list…

According to real estate agencies Ozana and Hillberg, luxury apartment rentals have been the hardest hit, with monthly rental prices down between 30 and 40% since the pre-economic crisis days of 2008. Rentals in the centre of Zagreb have managed to fare somewhat better, with 10-12 EUR the average square-metre price.

“Budgets that foreign directors now get for renting is not the same as it was. They have been noticeable reduced, especially in the car industry, and that is the main reason that rental prices have also had to drop. It is the same with embassy staff. Accommodation budgets have been cut, as have the number of jobs in embassies,” Kristina Maković from Ozana told the daily, adding that luxury apartments in Zagreb often are going for around 8 EUR per square metre, whilst more and more landlords are offering apartments in the capital for 6 EUR per square metre monthly.

“If apartments are not nice and well furnished then they will be difficult to rent out. But investment is not a solution because it is not a guarantee that they will be able to rent an apartment and make a return on investment. Most tenants are looking for smaller dwellings, up to 350 EUR a month,” said Tamara Skorić from Hillberg.