Counter to initial expectations, pandemics has caused property price increase nearly all over the world. Experts predicted decline of property prices due to increased unemployment, personal bankruptcies and fall of DGP. However, they were wrong more than ever.
In Q4-2020 real estate worldwide increased its value by 6,7 percent on average, compared to the same quarter of 2019 in 37 OECD countries.
This trend will not turn its course so soon. Increased demand for new homes will continue all over 2021 and most likely in 2022. There are several reasons for it: cheap loans, inflation, accumulated savings and change of perception towards home working.
Croatia was no exception to EU property price index. Real estate has gone up by around 7,7 percent in 2020: newly built propert went up by 1,2 percent and properties for resale by 8,5%. Looking at two most vibrant regions, Zagreb market increased by 8,5% and coastal part of the country by 6,3 percent.
Looking at the period of 2016-2020, property prices in Croatia have gone up the most in 2019 (by 9 percent on year-to-year basis).
This increase was only slighly above the EU27 average, which keeps Croatia among stable property markets.
As for the first quarter of 2021, we can notice a slight decline in number of transactions in Zagreb city, while the coastal part is still keeping up to pre-pandemic results.
More than ever, EU nationals are thinking about buying a second home in Croatia, primarily the residents of Germany, Austria, Czechia, Slovakia, Hungary and Poland, all of which are traditionally bounded to Croatia as tourists and are able to easily reach the country with the car.