Citizens of the European Union will be interested to know that the new real estate law in Croatia makes them equal to domestic population when it comes to buying real estate. The law will be in effect from February 1st 2009, which is less than two weeks from today.
This means that European buyers will from now on be able to buy real estate in Croatia without any of the previous limitations and special rules, which will now only aply to residents from other countries that are not yet members of the European Union. Up until now, foreigners were only able to buy real estate by founding companies in Croatia, which made the whole procedure much more complicated and time consuming. Well, from now on all Europeans can start investing in real estate in Croatia freely!
This may be the solution for the current situation at the market, which started to slow down to a point of standstill. In these times of crisis, the new law may prove to be just what it takes to light up the spark on the Croatian real estate market!

It seems that the financial crisis has struck the Croatian real estate market. Apartment prices will drop, new projects will be delayed and the apartment renting market will blossom. The question is: “Is it time to be patient or invest?” Well, the answer is not that simple!
There is an obvious stagnation of selling in Croatia now. People are more careful when investing their money, but the banks are those who rule the market because their credit policy is now more strict than ever. All of this has led to an increase in the renting market.
Potential buyers still expect that the prices will drop even more and this stagnation may be just what influences the prices enough for them, despite the recent announcements that prices may even rise during the coming crisis. Although, if the prices really fall, the y will not fall so much that you will get an apartment “for free”, it will be a moderate fall. It is imperative to think clearly and look at the realistic value of the real estate you intend to buy. If you ask yourself the right questions, you will find the right answers! Is the real estate you intend to buy undervalued? Does it ensure a profit in the long run? The people who said prices will rise in the future were not stupid, they had their sources and good information too! The market may be polarized by all different prognosis now, as families do not have enough income to sustain an investment, while the people with enough money and financial power see good long term investment opportunities.
Investors are also affected by the crisis. Strict bank policies have influenced activities related to real estate investments in Croatia, which has had a huge influence on the so-called “small” investors, while the “big players” are still able to acquire enough resources due to their financial strength.
All we can advise you at this time is to be patient and wait before buying an apartment if you are “running” on a low income cause all analysts say that the prices will drop in the near future. On the other hand, if your “tank is full” and you are searching for an investment opportunity, then you should definitely consider buying, especially if you take in account the new real estate law in Croatia, but we will tell you more about that in our next article!

The year 2009 brings us less new apartment buildings and a recession in the construction business. This will probably cause a drop in apartment prices, but not in the region of 30% or more like some might have expected. Sure, smaller investors will have to lower their prices more, but the “big players” will do no such thing.
Prices of real estate at the Adriatic coast in 2008 grew 4,6 percent, which is reletively a small amount considering the high growth during previous years. Average price of a square meter is about 2000 euros for weekend houses and apartments, and around 1500 euros for bigger houses. Dubrovnik is still the most expensive location in Croatia. Price of a square meter in the most prestigious town in the Adriatic is 3649 euros for an apartment and a little bit more, 3694 euros, for a house. To cut things short, price index for houses on the Adriatic coast of Croatia is in stagnation and shows a tendency to drop even further in 2009.
We are all in for an interesting and exciting year!

Trasa real estate agency wishes you all a happy new year! We hope that the crisis that shook the world in 2008 will stay in 2008, and that there will be no more turbulence, bankruptcy and misery in the year 2009, which will hopefully be the year of optimism and financial prosperity.
The real estate market in Croatia has so far not been strongly affected by the crisis, so there are still some good investment opportunities throughout the country. All investors looking for such lucrative opportunities in 2009 should definitely investigate what the market in Croatia has to offer. But, enough talking about business now, there will be enough about all of this in the coming weeks.
Employees of the Trasa real estate agency wish you to have a very happy and successful 2009!