A loss of momentum
Property price rises in Croatia are slowing, according to research by Info-nektretine, a Rijeka-based real estate magazine.
Croatian real estate prices rose by around 7% in the first half of 2006, according to Info-nektarine's research.
Real estate is more actively traded in the Adriatic coastal areas and other popular tourist destinations. Dubrovnik, with its nearby beaches and recently restored historical town, is a primary tourist destination and commands high prices. The Northern peninsula of Istria is home to a property boom fuelled by German buying.
Foreigners own 3,962 flats in Croatia, out of which 58.58% (2,321 flats) belong to Germans, followed by Austrians with 738 real estates, and Hungarians occupying the third place, according to Dubravko Ranilovic, president of the Real Estate Association.
In 2005, the number of real estate transactions decreased by 20% compared to the previous year, but this did not result in a price decrease. Almost all counties in Croatia reported a decrease in transaction volumes in 2005. Sales in Split decreased by as much as 50%. According to the Tax administration, the number of apartments sold in Croatia decreased by 18.3% compared to the previous year.
