N1 reports. “Real estate prices rise according to the law of supply and demand,” explains Ivica Vulić and adds: “Split is specific, there is not much room for expansion, the demand is high, and that is why the prices are rising. All projects are sold as soon as they obtain their building permit; they are even sold without a defined price because the owners do not know what will happen during construction in a year or two. Considering the high demand, the prices have been increasing by 20 percent annually for the last couple of years, maybe more. Split is also interesting to our customers, returnees, athletes, and entrepreneurs, that’s why the prices are so high in select locations like Meje. Foreigners also invest. This situation with covid has encouraged people to invest money in real estate because the interest rates in banks are minimal, sometimes negative, so the best investment is in real estate.”
Vulić believes that citizens tend to buy more because of the low-interest rates for savings in banks, so they think it is more worthwhile to invest in real estate.
When asked whether people should wait to buy real estate or not, Vulić answered: “If this situation continues, what you buy for five today, you will buy for six next year.” Considering the prices of square meters of apartments, if you buy an apartment for 3,000 euros per square meter and calculate that you will pay it off through rent, it is logical that owners will keep raising the rent prices.”
He says we cannot know when and how Split real estate prices will settle.
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