Dubrovnik Property Remains Extortionately Expensive, But Still Sought After

Lauren Simmonds

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As Poslovni Dnevnik/Marija Crnjak writes, demand for Dubrovnik property, more specifically apartments, is higher than the supply at the moment. Apartments in newer buildings, villas and building land are also in high demand in the extreme south of Dalmatia, Nada Burum, vice president of the Professional Group of Intermediaries, told local portal Dubrovacki vjesnik.

The census showed that the number of inhabitants is falling, and the number of housing units is, despite that, growing – 11 years ago down in Dubrovnik-Neretva County there were 40,668, and last year 72,792 housing units. In the wider Dubrovnik area, there are currently about 20 buildings under construction, and 90 percent of those apartments were sold at an early stage of their construction. Burum pointed out that the demand for Dubrovnik property has always been emphasised, but that several key factors in the last six months have influenced the rise in prices of new construction.

“Increased demand was largely due to inflation. Croatian buyers and foreign investors invest their money in property in order to preserve or increase the value of money. Another important factor is the rising cost of construction materials and labour shortages resulting in increased construction costs. These two key factors, as well as some others, such as Croatia’s imminent entry into the Eurozone, have contributed to a significant rise in prices, so the average price of a new apartment in Dubrovnik is about 4,500 euros per square metre,” explained Burum.

The average price of older apartments that are bought mostly for housing is about 3,500 euros per square metre, with differences existing depending on the location of said Dubrovnik property. The most expensive square metre costs around 7,000 euros, up in the area around the historic city centre and in the old city itself. Luxuriously furnished Dubrovnik property that serves for commercial purposes such as an investment for renting out to tourists can reach about 40 percent higher than the average.

According to Poslovni.hr, data from the Njuskalo platform shows that in Dubrovnik itself, an average of 4,151 euros is required for a square metre of a house, 2,033 euros in Split and 2,620 euros in Rovinj. In the past couple of years, the asking prices of apartments on the Croatian coast have grown, by an average of 2,974 euros per square metre in Split (+ 11.24%), in Zadar 2,398 euros (+ 12.37%), in Rovinj as much as 3,336 euros (+ 28.21%), and in Dubrovnik, which is the only one among them to record a decline, the highest remains – 3,575 euros (-6.61%). Demand prices for apartments have risen in Rijeka by 22 percent in the past two years, so now an average of 1,879 euros is required per square metre there.

Business premises on Stradun cost tens of thousands of euros per square metre, and that shouldn’t come as much of a shock to anyone.

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