The State Statistical Bureau published a new set of data on sales of newly constructed apartments in Zagreb, and it shows a price growth that was not seen since 2008. Price of a square meter at the end of last year was Kn 12,390, up 24.8% compared to the year before.
In Zagreb, in the second half of 2017, there were 674 new flats sold, almost half of 1,330 new flats sold in Croatia. Unofficial information indicates that the total number for 2017 is around 1,000. And the average price of a new flat in Croatia was Kn 11,060, up 11.7% from the previous year. But this gain is basically due to the rise of prices in Zagreb, whereas in other places the average price in 2017 closed at around Kn 9,838 or down 0.2% from 2016. In Zagreb, most new construction is sold out even before it’s finished, especially in good locations.
New construction seems to be booming, but analysts of Spiller Farmer, for instance, think that this could be a boom of demand accumulated over the past four years of slow growth. Also, the quality of new construction has changed for the better, also explaining a part of the price rise.
Good terms for new loans also contributed to growing demand, pushing the price up. But in the end, the analysts warn that it concerns a relatively small number of people. It will require more growth to sustain this trend.