With the arrival of a pandemic of coronavirus is increasingly likely that it will happen a large fall in property prices in Croatia. For years, real estate prices in Croatia have often been unrealistically high. I would say too high. While the average salary was about 1000 euros, the price per square meter of an apartment in Zagreb or Split was hard to find below 2000 euros. While the average salary was about 1000 euros, the average price per square meter of an apartment in Zagreb or Split was about 2000 euros. If it was a better location, the normal price was between 4000-5000 euros. However, the economic crisis of 2020 could lower the price by over 50 percent.
Earthquake + coronavirus = Catastrophe in Zagreb
The earthquake that struck Zagreb a month ago has been further worsened the situation on the real estate market. The biggest earthquake in the last 140 years has moved out a large number of families in the heart of Zagreb. More specifically, the earthquake in Zagreb has led to a higher demand for rent, which is generally offered at least ten percent lower cost. Buildings that have been given a yellow or red mark by construction professionals who have inspected buildings after an earthquake can hardly achieve 50 percent of the price demanded before the crisis and earthquake.
READ MORE Zagreb apartment rent prices are dropping fast in 2020
Dalmatia is still expecting the worst
Real estate prices in Dalmatia are already about 10 percent lower than before the crisis. Apartments that are rented to tourists before will be now filled with students at prices that are typical for the winter months. A lot of renters have given up on the whole tourist season, despite optimistic announcements that a large number of Germans, Czechs, Austrians, and other guests will still come this summer. Since I live in Split, my rental price has dropped by as much as 25 percent.
Unique properties on Stradun in Dubrovnik and on the waterfront in Split and in Trogir will continue to hold high prices for a while or with a minimum fall. Hvar and Brač also continue to have high prices, with a possible fall of up to ten percent soon. However, real estate with loans could experience a large fall in property prices in Croatia due to an urgent sale. Certainly, a tourist season 2020 is crucial for this part of Croatia.
In Slavonia without bigger changes
Even before the crises, the situation in Slavonia was not good. This part of Croatia is most troubled by the poor standard of living that is the reason why people move mainly to Western European countries. Because of this, there were a large number of flats and houses at extremely low prices. This year, the situation could get worse because many people will be out of work. Given that the real estate market problem has existed since before, there will be no bigger changes in Slavonia.
Possible a large fall in property prices in Croatia as much as 50 percent
In general, throughout Croatia prices of most real estate is for about 10-20 percent lower than in the period before the crisis. There is currently a lot of uncertainty about the future. Office rental prices will be the most affected for now. Certainly, we all look fearfully at the 2020 tourist season. It will be a tourist season that could deepen the crisis caused by the coronavirus pandemic. However, today the situation is much more favorable than before the 2008 crisis. During the 2008 crisis, entire settlements remained unsold. That will not happen now. But we are quite sure that it will stop the great growth that Croatia has had over the last few years.
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Source:
1. https://novac.jutarnji.hr/aktualno/cijene-stanova-u-hrvatskoj-ce-padati-neke-tesko-da-mogu-postici-i-50-posto-cijene/10247788/ (26.04.2020.)
