Value of property transactions made in Croatia in 2023 reaches €9.1bn

autor:

07. ruj. 2024. 12:48

| News

Podijeli

stan, stanovanje, stambeno pitanje, najam stana, stambena zgrada — Pixabay / Ilustracija | Pixabay / Ilustracija

Last year, 116,961 property transactions were made on the Croatian real estate market, which is an increase of 0.2% compared with 2022, while the value of the properties sold increased by 6.2% to €9.1 billion, an analysis by the Zagreb Institute of Economics (EIZ) shows.

Oglas

The value of transactions of €9.1 billion represented 12% of last year's Gross Domestic Product, with flats accounting for 39.2%, construction land for 21.9% and family houses for 18.4%.

In contrast to 2022, when most of the property transactions related to flats and holiday apartments, farmland accounted for 27.6% of all property transactions in 2023, with 32,240 transactions made. It was followed by flats and holiday apartments with 25,932 transactions (22.2%), construction land with 23,728 transactions, and family houses with 14,285 transactions.

In 2022, the number of property transactions fell by 12.9% compared with 2021, when they had increased by 30%.

Zagreb leads with the number of property transactions

The capital Zagreb led with the number of property transactions completed last year (14,901), ahead of the coastal cities of Zadar (2,326), Split (2,313) and Rijeka (1,478). In continental Croatia, Osijek recorded 2,027 transactions and Karlovac 1,232. Most of the transactions related to flats and holiday apartments.

Due to the sudden increase in real estate prices, the demand has grown for residential properties in communities adjacent to larger cities where property prices are more favourable. As examples, the EIZ cited Viskovo near Rijeka, Solin near Split and Dugo Selo near Zagreb.

Construction land transactions predominated in coastal areas, on the islands and in the hinterland of Istria and central Dalmatia, while farmland transactions were more prevalent in the rest of the country, the analysis shows.

Most expensive properties in Bale, Punat, Omisalj and Rovinj

Properties in tourist zones fetched the highest prices. The highest median prices per square metre of flats/holiday apartments were recorded in Bale, Istria County (€4,264), Punat on Krk island (€3,427), Omisalj on Krk island (€3,149), Rovinj, Istria County (€3,120) and Malinska-Dubasnica on Krk island (€3,017).

They were followed by Opatija, Dubrovnik, Split, Zupa Dubrovacka, Lovran, Baska, Umag, Dobrinj, Hvar and Krk, where the median price of a flat/holiday apartment exceeded €2,500 per square metre.

With the median price of €2,299 per square metre for a flat/holiday apartment, the City of Zagreb was included among 41 local government units where prices ranged between €2.001 and €2.500 per square metre.

On the other hand, median prices of flats and holiday apartments ranging between €500 and €1.000 per square metre were registered in 28 local government units, of which 21 are located in continental counties. Prices below €500 were recorded only in five local government units - the municipalities of Darda and Djurdjenovac in Osijek-Baranja County, the municipalities of Plitvicka Jezera and Perusic in Lika Senj County, and the City of Vukovar.

Family houses were much more expensive in coastal areas, with Cres standing out with the highest median price of €2,172 per square metre.

The median prices of family houses of up to €200 per square metre were recorded in 165 local government units, most of which are located in continental and rural parts of the country.

In 10 communities, square price of construction land available for 1 euro and less

Split and Fažana, Istria County stood out with the highest median prices for construction land, €286 and €247 per square metre respectively. At the other extreme, with median prices of one euro and less, were Ceminac, Draž, Donji Miholjac and Ernestinovo in Osijek-Baranja County, Bednja, Donji Martijanec and Marusevec in Varaždin County, Cazma in Bjelovar-Bilogora County, Selnica in Medjimurje County, and Glina in Sisak-Moslavina County.

Farmland was also the most expensive in coastal areas, The highest median price of €38 per square metre was recorded in Fažana, followed by Baska Voda on Krk island (€29), Solin and Seget in Split-Dalmatia County (both €28).

A total of 221 local government units recorded the median prices of farmland between one and five euros per square metre, while in 174 units the median price of the farmland sold was less than one euro per square metre.

The lowest median price of 0.1 euro per square metre was recorded in six continental units: Djulovac, Davor, Stara Gradiska, Okucani, Preseka and Nova Kapela.

Highest median price per square metre of business space recorded in Dubrovnik

The highest median prices of business premises sold were recorded in coastal areas and around Zagreb.

In 2023, a record median price of business space of €3,067 per square metre was recorded in Dubrovnik, while median prices of €2,003 and €1,957 per square metre were recorded in Split and Zadar respectively.

The analysis also revealed the lowest affordability of flats or holiday apartments in coastal areas. In 15 coastal units - Baska Voda, Rovinj, Hvar, Gradac, Baska, Murter-Kornati, Malinska-Dubasnica, Krk, Novalja, Dubrovnik, Vrbnik, Bol, Funtana, Okrug and Vrsar - the value of the affordability index was above 30, which indicates that more than 30% of the annual income is needed for the purchase of one square metre of a flat or holiday apartment.

On the other hand, the most affordable flats were available in Vukovar, with an affordability index of 2, followed by Strahoninac, Djurdjevac, Brdovac, Vrbovsko, Cabr, Pakrac, Beli Manastir, Bistra, Knin, Djurdjevac and Darda.

The top 82 most unaffordable property markets included solely coastal communities. With an index value of 17.1, the City of Zagreb ranked 86th, where residents could buy 5.9 square metres of a flat for the average annual income.

When it comes to rent, the highest median monthly rent prices for flats/holiday apartments per square metre were recorded in Zagreb (€10.1), Split (€10) and Dubrovnik (€9.7), and the lowest in Vinkovci (€4 .5), according to the EIZ.