ZAGREB, January 4, 2019 – Despite the latest government measures, such as lower property sales tax, and planned subsidies for housing purchases, developments on the Croatian real estate market are not in favour of buyers because housing prices have increased by between six and seven percent since 2017, the Croatian Chamber of Commerce (HGK) said on Friday.
With the start of the New Year, property sales tax was cut from four to three percent, and it has been announced that the five-year housing subsidy scheme could be extended for another two years to include couples who already have a child, and not just those who have a child only after they become beneficiaries of the scheme.
“Despite the planned measures, developments on the real estate market are not in favour of buyers because prices of square metre of property throughout Croatia have increased by between six and seven percent since last year,” HGK said, recalling that similar increases in house prices had also been recorded in 2017 compared to 2016.
In Zagreb alone, house prices increased by nine percent on average last year, with the average price of square metre jumping to 1,900 euros.
More news on the Croatia’s housing market can be found in our Business section.
