Retail and Office Space 35% Cheaper

The deep economic crisis has had an effect on the real estate market in Croatia, with residential property becoming harder and harder to shift. Whilst the number of buyers in the apartment and housing market is think, it is even slimmer in the office and retail space market…

With more than 2,500 small businesses closing down in Croatia in the last 12 months, the high streets in some parts of the country are beginning to resemble ghost towns with former hairdressers, cafes and retail shops empty. The glut in the market has forced prices right, especially in the capital Zagreb where the price of retail and office space has fallen 35% since 2011. It is not even unusual that a landlord will offer space to tenants for free, provided they pay all the utilities until the business gets up on its feet.

The average asking price in Zagreb today for office space is 1,364 euros per square metre, and 1,212 euros per square metre for a cafe/bar space. The average asking price for a warehouse is 1,513 euros per square metre. Whilst prices in the capital have dropped, daily Slobdona Dalmacija says that prices in Split on the Dalmatian coast have managed to hold their ground. The average asking price for office space rental is 9.5 euros per square metre, whilst buying prices are on average 2,200 euros per square metre.