Property prices on the Adriatic coast of Croatia increase

According to the  property portal Home Overseas, referring to the online source Balcans.com,  the value of real estate on the Adriatic coast of Croatia increased by 1.3% in December 2011 over the same period last year, while  the prices in the capital of Croatia  – Zagreb has decreased by 3.2%.  The coastal property price for square meter is 2038 euros, which is 0.6% higher than in the previous month, the average cost of square meter in Zagreb is 1744 euro.

The highest property prices are stated in Dubrovnik area located in the south of the country, with the average of 2978 euro per sqm. Split-Dalmatian area is coming next with the average prices of 2447 euro per sqm. The most available prices are in Lizo-Senosky distric with 1691 euro/ sqm.

According to experts, Croatian real estate market may be  significantly affected by the new property tax.  If the Croatian authorities impose a tax on unused real estate for companies,  banks will be forced to expose their existing mortgage housing for sale at reduced prices, which is especially important for Zagreb.

In general, the stability of the real estate market the Adriatic coast of Croatia will depend on the economic situation in Italy, Austria, Slovenia and Germany, and the general economic situation in Europe and the world.