Despite the latest government measures such as lowering the property sales tax and planning subsidies for housing purchases, developments on the Croatian real estate market are not in favour of buyers because house prices have increased by between six and seven percent since 2017, the Croatian Chamber of Economy (HGK) said on Friday.

With the start of 2019, property sales tax was cut from four to three percent, and the government announced that the five-year housing subsidy scheme could be extended for another two years, to include couples who already have a child, and not just those who have a child only after they become beneficiaries of the scheme.

“Despite the planned measures, developments on the real estate market are not in favour of buyers because prices of square metre of property throughout Croatia have increased by between six and seven percent since last year,” HGK said.

Similar increases in housing prices had also been recorded in 2017 when compared to 2016, they added.

In Zagreb alone, housing prices increased by nine percent on average last year, with the average price of square metre jumping to €1,900.

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