Price per sq metre

[stopngo]

Hi,

I was over in Croatia last month looking at a few properties.

Prices around the Dubrovnik area seem to range from 2500-3000 per sq meter on the coast, and 3000-4500per sq m in Dubrovnik itself, depending on location. (take a new 2 bed appartment as a base)

Would that be about right?
How much of this price is inflated for 'johnny foreigner'?

[seka]

Yes, you are right: Dubrovnik is very expensive. Croatian newspapers said that that there was an apartement in Dubrovnik, which was sold for close to 6.000 euros per sq.m.

Some parking space, near the old town, asking price 2.500 euros per sq.m. Crazy! Croats are not buying at this prices, but the prices stay high, as it seems there are some foreigners still prepared to pay this.

[stopngo]

seka said:

Yes, you are right: Dubrovnik is very expensive. Croatian newspapers said that that there was an apartement in Dubrovnik, which was sold for close to 6.000 euros per sq.m.

Some parking space, near the old town, asking price 2.500 euros per sq.m. Crazy! Croats are not buying at this prices, but the prices stay high, as it seems there are some foreigners still prepared to pay this.

Well, what prices are the Croats buying at ....or are they buying at all?

[seka]

Croats are definately not buying in Dubrovnik, they cannot afford these crazy prices.

[mambo]

Also in Istria you will find prices of up to 3500 euro/m2 and in Opatija it is even higher.

Indeed none of the Croatians are buying for these prices, it is a market completely driven by foreign speculation.
As soon as the foreigners figure out that there are other places, other countries where you can buy cheaper this cardhouse will fall apart in 2 seconds.

[mark2]

A Slavonian developer has just about finished some brand new apartments in our town, high standard, showers that look like spaceships (kitchens not supplied) about 300 metres from the sea and they are 1,150 Euros per square metre. These are realistic prices and for a high quality build. Built by Croatians for Croatians (and if foreigners do buy them they'll think they are cheap!) £36,000 for a brand new apartment.

There are a lot of new apartments being constructed in Zadar (mainly on the sites of old factories) , one complex is 300 metres from the Marina and prices start from 1700 Euros per square metre.

[Ribaric]

That price sounds to be too good! Here in Varazdin, new apartments are going for about Eu1,100 /m² with nothing fitted, no bathroom, kitchen, heating, fittings, not even internal doors. I would have though European Croatia would be much cheaper than on the coast but the market here is very active, things don't stay empty for long. My local agent says he's getting a lot of UK enquiries lately.

[mark2]

ribaric said:

That price sounds to be too good! Here in Varazdin, new apartments are going for about Eu1,100 /m² with nothing fitted, no bathroom, kitchen, heating, fittings, not even internal doors. I would have though European Croatia would be much cheaper than on the coast but the market here is very active, things don't stay empty for long. My local agent says he's getting a lot of UK enquiries lately.

These apartments are totally finished, everything brand-spanking new. Like I say, without the kitchens (which can be cheap enough) I didn't wish to be too nosey but a neighbour said that all of the materials were brought down from Slavonia (where they are apparently cheaper? don't know) The owner even asked me if I thought the price was reasonable And these are professional property developers and builders. I think they are more interested in a quicker turnover and on to the next project. Better for All in my opinion.

[mambo]

Why does everybody think that all of a sudden 1100 euro/m2 is too good to be true ?

The real building costs e.g. in Holland are usually around 500 to 750 euro/m2, the rest is pure profit.
In Croatia, where the cost of labor is a hell of a lot less you can safely conclude that any apartment or house can be build for the same price.
Don't forget that before the euro came you had an expensive apartment or house if the building cost surpassed the 1000 DM (Deutsch Mark) per square meter (which is 500 euro). It was considered extremely luxurious if you were building for 1500 DM per square meter (which is 750 euro).

Now we have the euro, we divided all the prices by 2 and then (to raise the profit) we multiplied that by 2,5 and then we start explaining that in reality one should regard this as 'cheap'.
This strange logic I cannot follow at all, if 1750 euro per square meter, which is 3500 Deutsch Marks, is now considered cheap we have seen an inflation of 250 % in less than 3 years.
It did not go in the building material, it also did not go in the salaries, a little went in the land (perhaps 200 euro per square meter), so the only logic conclusion is that the owners/developers/construction companies etc have raised there profit levels to unsurpassed heights.

In itself I have no problem about that, but..................be honest about it. Simply admit that you are taking 250 % extra profit, but stop explaining (which is impossible) why that 250 % was necessary.

[Ribaric]

I guess this about expectations as much as anything. I haven't been here long enough to remember prices of flats lower than 900E so I guess, as they compare to middle England prices, this is still very inexpensive. Houses here (VZ) are at about 750E /m² for something nice and well appointed. A much better deal IMHO. It seems that apartments are much more favoured around here, maybe the cost of heating in a Varazdin winter is worth noting.

From a free-market viewpoint, it doesn't really matter to the buyer how much they cost to build, the demand and supply situation will set the price. It should anyway. The choice is really - Do you want to buy when the demand is outstripping supply? I don't. I'm sitting tight with my cash in the bank. I could regret it however but that's the game we all play is it not?

[mark2]

A correction to my earlier post: The apartments in Zadar are not 1,700 Euros per m2, they start from 1,550 Euros per m2 and NO, we are not selling them!