UniCredit Bank Group has conducted an extensive study of the real estate market, encompassing 11 countries of Southeast Europe. The results were presented by UniCredit Group Regional Office CEO Erich Hampel at the Annual Business Forum of the European Bank for Reconstruction and Development (EBRD), held in Kiev on 18 and 19 May.
The analysis indicates that the real estate market in Croatia is at an advantage compared to other countries in the region. However, there is a housing shortage in larger urban centers and along the Adriatic coast, in spite of expanding apartment construction. A square meter in Croatia goes for EUR 1,700, more than in other countries of the region, except in Romania (EUR 2,177) and Poland (EUR 1,968). A square meter in Zagreb costs around EUR 1,914, which is more expensive than in Sofia, Budapest, Bratislava, Prague or Riga, but cheaper than in Kiev, Bucharest or Warsaw.
Commenting on the results, Zagrebacka banka analyst Nenad Golac says that there is growth potential for the Croatian housing market over a ten-year period. However, stricter loan policies could push down the sales and prices of real estate for the next couple of years. Real estate prices have risen considerably, but the upswing is in line with nominal income increases, as Croatian citizens slowly approach the EU standard of living, he explains.
Source: Poslovni Dnevnik