Text: Ivana Alfier, Stanarica.hr

There comes a time when the house where you grew up, took your first steps, survived your first love, becomes cramped. That’s roughly what a bank ad said, in which the main character – a grown-up, bearded young man – crawls into bed with his parents. The commercial was supposed to be funny, and so the bed breaks in the end. Although at the first sight it can seem that there was too much marketing exaggeration, scenario is actually very realistic. Statistics say that leaving a parental home at the age of 32 is a fairly normal thing in Croatia. What would Swedes say whose children become independent at the age of 18 and a half? We don’t know, after all, let’s leave the Swedish model for now, we have tried one already… We will dedicate to our situation at the market, and at the biggest one, because finding and buying a decent apartment in Zagreb for around 100.000 to 150.000 Euros has become an impossible mission. We asked both customers and experts why this is so.

Buying an apartment in Zagreb

“I am very angry at the insistence that young people in Croatia live with their parents because they are lazy, when it comes to the fact that a whole generation is a victim of a non-existent housing policy,” Ana, who wants to buy an apartment in Zagreb, told us recently. Even after a year of searching, she has not yet found her home. And she doesn’t look for the impossible – a two-bedroom apartment in a newer building, not a ground floor and not an attic. The condition is that the building has an elevator and a balcony. She searched her target locations of Donji Grad, Maksimir, Svetice, Ravnice and nothing.

“The supply of apartments is poor, and housing is almost entirely left to the market due to the lack of housing policy, so the prices are extremely high,” concluded Ana.

Influence of corona and earthquake on the market in Zagreb

Flats and houses are always bought and sold, no matter what. True, due to the Zagreb earthquake and pandemic, which still does not leave us alone, there is less buying and selling. But, new construction is never enough, although for only 1 m2 of a new apartment in Zagreb, at least two average salaries should be set aside.

Buyers are looking for newer construction, it is a trend, says Jasna Biliškov Barun, a real estate agent. “The earthquake left more traces on the movements on the real estate market in Zagreb than corona virus. Not so long ago, the city center was the most attractive and most desirable among customers, but the earthquake completely turned it around. Nowdays, old Art Nouveau buildings in the city center are the least desirable, and buyers bypass them. With newer construction, the demand for land and houses has increased. ”

Are apartment and house prices rising or falling?

Statistics show an increase in the prices of new construction in Zagreb, but this was more or less expected. Quality real estate in good locations sells out very quickly. It is more surprising that the market for older apartments has not yet adapted to the new situation, so the prices of new and old apartments are the same in some locations. According to the experience of Jasna Biliškov Barun, director of Biliškov real estate, prices are stable for now.

“Prices have not dropped, and the main reason is the rather poor and limited offer of real estate that are complete, have a head and a tail, from proper documentation to a quality floor plan and usability of space.”

Is the difference in the price per square meter of a new and old apartment too small?

“The difference in price between old and new construction should be at least 500 Eur / m², or more. In general, I would not say that the difference is too small, and if it is, then the apartment in the old building will not be sold at the asking price.” – says Biliskov Barun.

What kind of apartments are most in demand?

However, there is one exception. And these are apartments of 50 m2 with a price of around 100,000 Euros which always have been the most preferred.

Jasna Biliškov Barun says “Smaller apartments up to 50 m2 in older construction can achieve a high price compared to prices in new construction, because they are in high demand. The offer is scarce, and there are very few of them in new construction. You usually have to buy them at the very beginning of construction, and many buyers are skeptical about this model. ”

For families with children, smaller three-room apartments up to 70 m² are most in demand, while single people usually look for two-room apartments up to 50 m². In general, apartments up to 150,000 euros are very wanted.

What will the real estate market look like in 2021?

If the APN tender continues, the market will remain stable and vibrant. Higher demand always means higher prices, so for those who do not have the conditions for APN state subsidies, the situation is not fabulous. The choice is mainly reduced to two options: buying an apartment at a market with already weak offer, which will be accompanied by a large loan, or going to rent where the monthly price exceeds 40% of household income. Renting apartments is a bit cheaper nowadays, because the former apartments for daily rent are now rented for a longer period.

However, having your own apartment in Croatia is simply a “must have”. We are record holders in real estate ownership. Almost 90 percent of citizens live in their own property. It is unlikely that anything will change in this regard in the near future. And what will happen to real estate prices in the near future – well, that’s a joker’s question for anyone who deals with real estate!

During the corona crisis, we are witnessing that everything can change on a daily basis, says Jasna Biliškov Barun. How prices will behave in the future and whether there will be any major changes in the next year is ungrateful to predict.