Croatia real estate prices rise faster than 2008 crisis levels

The Croatian real estate market is experiencing rapid price growth, currently outpacing the trends seen during the 2007/2008 crisis. Economist Hrvoje Dolenec notes that while prices are rising, the macroeconomic environment is more stable than in previous cycles. Croatia is currently seeing record-high employment, higher wages, and improved bank credit portfolios. Notably, data from the Croatian National Bank indicates that 70% of real estate purchases are made with cash rather than loans, reflecting increased savings and consumer stability.

In Zagreb, discussions regarding housing availability have centered on proposed increases to the real estate tax, which could rise from five to eight euros per square meter. While city authorities aim for this increase to encourage owners of vacant properties to enter the rental market, social policy expert Gojko Bežovan suggests that more rigorous analysis of previous tax impacts is needed. He argues that a uniform tax across all zones of Zagreb may not be equitable, given the varying rental and property values across different city districts.