As Poslovni Dnevnik writes, to begin with, it’s worth noting that the Republic of Croatia’s real estate turnover last year amounted to a massive 60 billion kuna, which is a whole 20 billion kuna more than it amounted to back in 2020. The number of sales was also 30 percent higher. The highest price per square metre – coming in at more than two thousand euros – was achieved by property sellers in four Croatian cities: Dubrovnik, Rovinj, Split and Opatija, while in the City of Zagreb the average price per suqare metre was 1,600 euros.
It is particularly interesting that almost half of the properties were bought with cash, and when we talk about the possibility of buying real estate, residents of the coast are the least likely of all to be able to actually afford property.
This interesting data was commented recently on HTV’s Dnevnik by economic analyst Luka Brkic from the Libertas University, who said that people, especially in turbulent, uncertain times, try to escape with their assets to safer harbours – and one of the anchors definitely comes in the form of purchasing real estate.
Brkic also said that APN’s loans further stimulate the demand for apartments, and then the price increases follow.
“It’s also possible to go into slightly more speculative waters and say that a large part of property that is bought with cash has speculative characteristics and attributions, that is, that it is possible that it is a matter of some percentage of money laundering,” said Brkic, claiming such things can never really be ruled out.
Brkic added that some Croatian and international research estimates show that the shadow economy which is very much present here in Croatia could be worth slightly less than 30 percent of GDP. This is an absolutely enormous amount of money that does not end up in the tax system at all, he noted.
“This is something that is definitely a problem. Whether it is a third now or not we can’t be sure, but whatever the figure is – it’s definitely much too high,” he warned.
For more on property prices in different Croatian cities, make sure to check out our dedicated lifestyle section.
