Post by Anna on Dec 26, 2005 20:50:18 GMT 1
The Croatian daily newspaper Jutarnji list talked to various property experts to consider predictions market for Croatia in 2006:
Tomislav Horvatincic, from one of the largest construction company in Croatia, Hoto Group, says that the difficulty and delay in acquiring planning permission has a negative effect on construction. He expects that in 2006 that 300,000 - 400,000 sq. metres of residential property will be built Zagreb. He expects a price increase on 10 - 15% on last year and the price for a new build property to be between €1,950 - €2,050 per sq. metre.
Dubravko Ranilovic from the Association of Property Agents is not so optimistic. He feels that prices per sq. metre will not go up in the next year but will stay the same as Croats' spending power decreases.
On the Adriatic the situation is different. In exclusive tourist locations such as Dubrovnik and Hvar, prices will definitely increase for properties and land plots as the supply of these decreases.
As an aside: it is interesting to mention that upon the Croatian government's announcement of the plan to build a bridge from the mainland to the Peljesac Peninsula (thus allowing traffic to avoid the Neum corrider in Bosnia completely), property prices on Peljesac went up by 30%.
- It seems that there will be fewer new build developments in Zagreb than last year, particularly for commercial property as this particular sector is reaching saturation point.
- It is predicted that more shopping centres are to be built.
- Hotels and attractive plots of land close to the sea will increase in value.
- The property market in the interior will stagnate.
Tomislav Horvatincic, from one of the largest construction company in Croatia, Hoto Group, says that the difficulty and delay in acquiring planning permission has a negative effect on construction. He expects that in 2006 that 300,000 - 400,000 sq. metres of residential property will be built Zagreb. He expects a price increase on 10 - 15% on last year and the price for a new build property to be between €1,950 - €2,050 per sq. metre.
Dubravko Ranilovic from the Association of Property Agents is not so optimistic. He feels that prices per sq. metre will not go up in the next year but will stay the same as Croats' spending power decreases.
On the Adriatic the situation is different. In exclusive tourist locations such as Dubrovnik and Hvar, prices will definitely increase for properties and land plots as the supply of these decreases.
As an aside: it is interesting to mention that upon the Croatian government's announcement of the plan to build a bridge from the mainland to the Peljesac Peninsula (thus allowing traffic to avoid the Neum corrider in Bosnia completely), property prices on Peljesac went up by 30%.
