Cheap borrowing encourages buying, and with such a high inflation rate, money invested in real estate will not lose value.

The rise in real estate prices in Croatia is unstoppable. But despite the overpriced square meters, demand is not waning. In addition to houses and apartments, interest in building plots has also grown significantly over the past two years, reports HRT.

Stefano Ladavac intensively searched for building land in central Istria for two years. Supply was weak, and prices were higher than ever. He considers this plot in Sveti Petar u Šumi perfect for building two villas that will be rented out.

“We are absolutely satisfied with the price, it came to 22 euros per square meter for us, while the approximate starting average price of building land in Sveti Petar u Šumi is 40 euros per square meter, so we got a very good deal,” said investor Stefano Ladavac.

There is not much choice in Zagreb either. The seller of land near the airport is asking 65 euros per square meter. The market dictates the price, and according to the market, it is realistic. At the same time, it is also twice as high as when the plot was bought six years ago.

Cheap borrowing encourages buying, and with such a high inflation rate, money invested in real estate will not lose value. Building plots are most sought after in Zagreb, Split, and Zadar. Prices of all types of real estate are reaching record highs.

“I do not see a situation in which prices will fall in the foreseeable future. The market is active, so I think it will simply continue like this given the entry into the eurozone,” emphasized real estate sales agent Mia Vučić.

The latest Eurostat data show that real estate prices in Croatia rose by thirteen and a half percent in the first three months of this year compared with the same period last year, which is above the European average.

Source: poslovni.hr