World property market began to slowly recover as the 2009 approached the end, although still showing signs of instability. The report was prepared by the Global Property Guide based on data from 27 countries. The last quarter of 2009 brought growth in real estate prices in 16 countries, while a further 11 recorded a fall, but still yearly price growth was recorded only in 10 countries. This shows that the market is still in crisis.
Although a slight increase in the second half of the year was recorded in many countries, it can not undo a huge drop in the level of the year. Just to mention Latvia (a bit less than 60%), United Arab Emirates (almost 50%), Bulgaria (about 28%), Iceland (a little over 20%), Russia (almost 20%) and Slovakia (approximately 15%).
In relation to the first half of the year, when prices rose in China, Portugal, Australia, New Zealand, France, Sweden and Hong Kong, prices have risen in the United Kingdom, Canada, Germany and South Africa before the end of the year, although it amounts to about 1-3%. Thus, in the U.S. prices rose by 1.2% with the annual decline of 7.5%, but it should be noted that the decline decreased from the beginning to the end of the year, indicating a positive trend of the market. Most successful market is that of Israel, where prices rose at the annual level of over 10%. Recovery and price growth were also achieved in Switzerland, Indonesia and Norway.
The markets in Asia and the Pacific were revived, so Australia recorded a growth of almost 5%, while New Zealand is a little behind with 2%. Hong Kong also recorded an annual growth of 3%, but the other Asian financial giant, Singapore, recorded a significant drop of 11%.
Positive signals for big investors are coming out of Dubai with the growth of 7% in the last three months, although, as already noted, the annual drop is a huge 50%.
The research results clearly indicate that the crisis affected the once fierce developed real estate markets of Western countries and Arab sheiks, while in Asia, where the overall economic growth continued, the growth of the real estate market continued too.

10% of loans to enterprises is not payable and total loans to private companies are falling from month to month. The crisis that hit the economy and property market hit the banks too, which means that in the case of bankruptcy of a company it is difficult to settle the remaining property.
The banking rule is that the bank finances the business project, not a company, that is her name or property, but the instruments of insurance still play a major role in the overall job. So when it comes to issuing new loans, banks are more cautious than before, especially when it comes to real estate offered as collateral, which eventually results in smaller loans.
In Zagreb bank there are different approaches and the bank has various insurance instruments. There are promissory notes and bills, mortgages on property assets of a company or private persons. Most loans are repaid according to contracted terms, but there is a small proportion of loans in which the inability to charge results in implementing execution or bankruptcy, which must be initiated by other creditors because the bank can not legally run bankrupcy claims if there is a mortgage on the property of the client. Even if someone else starts the bankruptcy, the bank is charged separately from the amount obtained by selling the pledged property. Appraisal of the property is based on location, quality, age and current condition of the property.
The Hypo Alpe-Adria-Bank said that despite all the problems payments are still satisfactory. There are some problems with credit entities and entrepreneurship, where the increased number of requests for reprogramming in long-term commitments led to a postponement of repayment. Termination of loan agreements are not increased, but the bank is trying different interventions to help clients more easily pass through this crisis period.
The Raiffeisen Bank in cases of enforced collection charges out of all available collateral until all possibilities have been exhausted. The amount that the bank fails to charge is written off the business books. The mere payment out of the insurance is led in accordance with the Enforcement Law. At this point the bank has no losses due to reduced market prices of real estate.
Revaluations of market value of real estate are regularly conducted. In the event that the value is to diminish so much that insurance becomes unacceptable in relation to exposure, the bank may require amendment of insurance.
Basically, the Croatian banks for now deal well with an adverse situation that prevails in the economy, but are much more cautious when making decisions about entry into new projects and loans.

In a time of crisis housing savings societies are perhaps the best form of savings. The reasons for this are their conservatism, security of operations, stable yields and state incentives.
Every Croatian citizen can be a client even if he is residing abroad and contracts are concluded for a period of 5 years. If he makes a loan before the end of the contract, the entire contract amount will be placed at the client’s disposal. There are a number of tariffs depending on savings time, and interests on deposit of 2-3%, depending on the currency clause.
Signing a new contract after the first 5 years gives the right to progressive interest, that is to an even greater profit. After 5 years the client can also use all special purpose funds and government incentives. Some savings banks offer different interest bonuses, especially if the client contracted savings for a child. These bonuses range from 25 to 100%, which is a great encouragement to all young parents.
Most deposits in housing savings are ensured, and every individual family member has the right to a contract. With interest and government incentives to the annual amount of at least 5,000 kuna, it is clear that this is the most profitable form of investment with great safety. After several years of investing in risky stocks and various investment funds, which was a big hit among many citizens of Croatia, it seems that the financial crisis and recession destroyed all illusions and that people are again returning to conservative forms of investment of their funds. In addition to savings banks and the financial market, this is good news for all entities involved in the real estate market in Croatia, whether it is the construction companies or Croatian real estate agencies, since the large amount of housing savings could easily end up on the market.

Real estate market in Croatia will be resting in 2010 too. Majority of real estate agencies in Croatia will try to forget 2009 as soon as possible.
Prices on the Rijeka market finally stopped on autumn levels at the end of 2009, which is below approximately 20% lower compared to 2008. Any significant progress in the next period is not expected; sales are stagnating, as well as prices and new construction, which was almost completely blocked in 2009, which in turn led to major problems for many engineers. In addition to engineers, the fall in turnover of almost 60% closed many small real estate agencies, of which many were not seriously engaged in this activity.
The fall in sales started as 2008 approached the end and continued in 2009 with an average drop of 50%.
One reason is the global financial crisis and recession, followed by extremely strict new conditions for bank loans, but perhaps the most problematic is the fact that the owners of flats and houses in Croatia are very rarely willing to adjust prices to market conditions, which leads to a small number of sales. The main reason is the emotions that Croats have for their property.
Customers are also much more cautious than during previous years, so even after finding a property that best suits them they decide to wait for a more favorable moment, which is directly linked to the overall recovery of the Croatian economy.
As for Rijeka and surrounding areas, trade takes place only at the suburban positions, where there has been a significant decline in the cost of square meters, while in the city itself it is very difficult to achieve sales. Most analysts believe that it will be so throughout the whole year, while the slow recovery can be expected only in 2011. All in all, those who survive the year in front of us can expect a lot of work and opportunity in the coming period. The Government could also contribute to the recovery with a more active engagement in the market.
The situation is even more difficult for construction companies and engineers. Building land prices fell by almost 50% and even so they are difficult to sell. New projects are still a long way from starting and the situation could go for the better only for 2-3 years.