Real estate prices in Croatia yet to explode
26 May 2008
Over the last ten years a strong growth of residential real estate prices was recorded in Croatia, thanks to greater availability of housing loans at relatively favourable terms, and a relatively fast increase in household income in real terms, reports UniCredit.
In their research on the Croatian real estate market, they give Croatia a certain advantage over most CEE countries in terms of quantity and quality of the housing fund, but there is still a significant shortage of homes, especially quality ones, in larger urban centres and along the Adriatic coast.
While the price growth has been considerable, it was not as explosive as in some other countries in the region, and it was mostly inside the range of household income increase in real terms. UniCredit sees a relatively large potential for expansion of the housing market in Croatia in the next three and next ten years. After a short-term slowdown, further growth can be expected in medium and long term.