10,000 new homes in Zagreb waiting for buyers
29 August 2008
The Zagreb real estate market, the largest and most dynamic in Croatia, crashed in the past few months, with a complete breakdown of sales. The offer exceeds the demand by far, prices are too high, and people’s credit capabilities are insufficient to follow them, says Milan Mlakar, director of real estate company Colosseum for Croatian daily Slobodna Dalmacija. Colosseum is one of the first companies to stimulate buyers by giving away cars with a property purchase.
It is estimated there are between 6,000 and 10,000 homes being offered in Zagreb, most of them newly built, which fail to find buyers. Mlakar warns this will drive most investors to bankruptcy, and only those with lower liabilities will survive. He believes the only way out would be in cheaper housing loans.