June 5, 2021 – The Croatian real estate market is very interesting and full of good investment opportunities. Many potential buyers were expecting prices to go down significantly during 2021, but is this really happening? A look at real estate in Croatia. 

Croatian economy has been going through turmoil in the last year. While the pandemic is wreaking havoc on the travel and tourism industry, devastating earthquakes in Zagreb and Central Croatia caused even more problems and shifts in the local economy. Incredibly, the traditionally volatile real estate market in the country doesn’t seem to be going through a serious disruption, at least when it comes to prices.

Zagreb, the country’s largest city, is experiencing a turbulent period. The real estate market of the city has been rattled both literally and figuratively by a series of earthquakes. The damage from the earthquakes exposed a poor state of many buildings within the city’s centre. At the same time, much of the Croatian coast has had a rise in property prices due to the region becoming a global travel hotspot in the last 5-10 years. Many of the most attractive areas like Dubrovnik or Split centres seem overpriced to anyone looking to buy. With all this in mind, it would seem logical the crisis Croatia is facing at the moment would force the prices to drop. Still, according to an article by Dnevnik.hr, the prices generally seem to be stable or are even rising.

Regional Differences

The real estate situation in Zagreb is dynamic. The aftermath of the earthquakes left many searching exclusively for new buildings outside of the city centre. Consequently, there is a rise in prices for such properties. At the same time, there is a drop in prices for some centrally located apartments, but the buyers are rare, especially in buildings that are awaiting renovation. On the coast, Dubrovnik, the country’s most expensive real estate market, is seeing a drop in sales. Reduced demand doesn’t seem to be having a direct impact on the average price. It seems most property owners believe in a quick recuperation of this popular travel hotspot. This is also true for the rest of the popular Dalmatian areas. In Istria, the market seems stable and attracts plenty of foreign buyers, especially from Slovenia, Italy, and Austria. Around half of the properties sold in Istria are bought by foreigners.

For more, follow our dedicated business section.

Downtown Zagreb will soon be getting its first green sustainable buildings! VMD Model, a developer based in Zagreb, will shortly begin construction on a unique green project right in the center of the city. It will revitalize a block in Donji grad, right next to the former Nada Dimić factory on Branimirova ulica, which is currently a large neglected space and parking lot.

As Korana Sutlić/Novac/JutarnjiList reveals in an exclusive on November 17, 2019; the 3LHD architecture studio won the competition for preliminary design of the project, which was conducted by VMD Model. Everything will be arranged around one fundamental concept: A new park; not just a neighborhood!

New Zagreb Green Spaces

Although this is primarily a residential project in the center of bustling Zagreb, it will be defined by green spaces, peace and quiet. Cars will not be visible within the neighborhood, but hidden underground. In addition to enhancing the value of the natural environment, this setting will reduce the effects of the urban heat island, noise and CO2 emissions. The buildings will also house Zagreb's very first vertical gardens. The block will not be closed off and the public will have access to a new park and passage from Branimirova to Ulica kneza Borne, much like the existing Ratkajev prolaz.

The project will be situated on a block of Zagreb, which follows the railway line, and is bordered by Branimirova, Bornina, Domagojeva and Erdödyeva streets. The site is a residential and industrial block, which housed the former Nada Dimić and Penkala factories. Since their closure in the 1990s, the buildings between the two streets have collapsed and have been demolished. This has created a large empty open space in the heart of the city, which offers an opportunity to create a valuable urban-architectural space. In recent decades, there have been several projects in this zone, which have led to a significantly higher building density than the current VMD Model project proposal.

- An analysis of the traditional blocks in Zagreb’s Donji grad revealed that public passages have always been present, and the creation of parks within the blocks of high-rise buildings, originated the concept of the new green urban block - says Saša Begović, architect, and one of the founders of the 3LHD studio.

High Standard of Urban Living

This feature of Zagreb's Donji grad block structure, which inspired the project, will promote a high standard of urban living and distinct lifestyle and cultural opportunities all within a high urban density environment. The layout of the planned neighborhood will provide space for multiple purposes: housing, business and recreation.

 A pedestrian path will be created between the north-south block of Branimirova ulica and Bornina ulica, and will replace the traditional block structure there.

- In contrast to the restrained design of the street façades, the interior of the block will be indented by multiple buildings surrounded by a park, whose dimensions and floor plans will be cascaded in height, closely corresponding with the park and green gardens within the block. A fundamental component of ​​the new block will be the pedestrian connection of the two streets, clear visibility, access to the city and the block, and the creation of a new large green area: an urban park within the interior of the block - explains Saša Begović, adding that the introduction of the park will improve the quality of housing not only for the residents within the block, but also those living in surrounding buildings.

Green Apartments and Townhouses

The project will include several different residential categories. Two-story houses (so-called townhouses) will be situated in a row with gardens, which will offer a very high quality of life and will be connected to the terrain, within the quiet interior of the block. There will also be apartments with larger terraces, which enhance the quality of outdoor living, and apartments with large walkways, city views and recognizable Zagreb vistas. The largest apartments will be housed on the top floor and have terraces with views of the entire city of Zagreb.

- We believe that, in partnership with a respected investor like VMD Model, we will be able to complete this very interesting project, which provides Zagreb with a new green urban oasis right in the heart of the city - says Saša Begović from 3LHD.

Neven Mikec, the Director of VMD Model, also shared his thoughts about the project, which will be a major stride in home construction.

- When we purchased this space, which has unfortunately been long-neglected, our desire was to create a green oasis, not only for the residents but for the entire block, and for the city of Zagreb. The project's vision is a new park for the city, not a new neighborhood. The main motive is to create something new, which is in line with green and sustainable construction - says Neven Mikec.

He is very pleased, he adds, with his choice of the winning entry, because the architects of 3LHD studio were inspired by his idea to add a "green theme" to the city center.

- It is also a project with much lighter building density than previous urban projects in this area. This layout will include residential spaces along with park architecture. The block will not be closed off for residents but open to the entire neighborhood - adds Mikec.

Engaging Local Artists

This project is a novelty in residential construction, and like the one completed last year on Buzanova ulica, it insists on sustainable construction. That project, which offers the benefit of a micro-community, will be taken a step further by the creators of the project on Branimirova ulica. Young artists have also been hired for the exterior of the building on Buzanova ulica, and will find ways to incorporate their art there, says Neven Mikec.

- We have never backed a housing construction project like this, and it will be the pride of our company and the city - he says.

The project will also include a kindergarten, which will be accessible to everyone, and offer plenty of outdoor space, and a playground for children, whom will be surrounded by greenery all day. Flower boxes will adorn the buildings and “green walls” are also in the plans. Rainwater harvesting will supply water for the greenery maintenance system. Plants will be cared for by VMD service, the company which maintains their other buildings.

On the ground floor there will be several townhouses with two stories with a garden. At the request of the investor, the project was conceived so that parking, garbage disposal and similar components will all be hidden underground.

- It would be great if our project inspires the further visual improvement of the neighborhood - Mikec adds.

The exact details, however, cannot be revealed yet, because this is still a conceptual design, he adds. The development and design will follow, so there is still no set price for the apartments, for example.

- We hope that we can start work in the spring - Neven Mikec concludes.

The completion of this project will certainly contribute to the development of this part of Zagreb. It will also create a very attractive space on the upper portion of Branimirova ulica, which has already improved to some extent with the renovation of the Branimir Center and Hotel Canopy. In the long run, it will be connected to the neighboring Gredelj zone, which is also undergoing revitalization.

For more information on Zagreb life, follow our Lifestyle section here. Also check out our sections: Made in Croatia here and Business here for the latest construction projects and real estate developments in Croatia.

For information on their upcoming architecture projects, check out the 3HLD website here.

As Novac/Korlana Sutlic writes on the 26th of February, 2019, Središće, a popular neighbourhood in Novi Zagreb often referred to as Bundek, in reference to the well-frequented Zagreb lake and park, has recently gained the status of the most desirable neighbourhood in Novi Zagreb. By reaching this level of popularity, when looking at the demand for flats, it is now ranked alongside Vrbani III, Trešnjevka and Trnje.

The very first jump in demand for quality apartments in Središće came after Bundek park was done up and after RIT Croatia (Rochester Institute of Technology Croatia) was opened in the area, and then the demand grew a bit more after the completion of the American International School in Zagreb (AISZ) just several months ago.

The popularity of the neighbourhood has also contributed to the birth of the recent construction of some new residential buildings, which are part of the Središće area. The biggest demand is for smaller quality three-bedroom and smaller four-room apartments, ranging between 60 and 90 square metres in size, the price of which is not greater than 200,000 euros. The market prices are high, some even reaching up to 3,000 euros for a well-equipped apartment.

The Središće area of Novi Zagreb boasts a great many amenities and ease of access to them. Along with the American Educational Institution and Bundek park, it is located near the Avenue Mall, the neighbourhood is also home to the Museum of Contemporary Art near the Hippodrome, and even has a hypermarket. One of Croatia's best private kindergartens is located at Bundek Centre, and it's also worth mentioning that Središće's close proximity to the very heart of Zagreb is something else that earns the area brownie points.

''All this contributes to its value,'' says Boro Vujović, the director of the Operta property agency.

Even the very name Središće speaks volumes to Croatian speakers, for non-Croatian speakers, the name indicates that it is centrally positioned in Novi Zagreb, while only Mladosti bridge (Most mladosti) and the river separate it from the wider city centre, according to Sergio Serdarušić, the director of Eurovila agency.

''The growth of demand for Bundek began a few years ago when the Zagrebačka banka built Bundek Centre. The recent arrival of the aforementioned American school has of course further influenced the popularity of the neighbourhood itself. Središće is fortunate in that it is positioned next to Bundek lake, which is one of the major reasons for its popularity. Just like on the other side lie Western neighborhoods such as Vrbani III made a big leap forward [in terms of popularity], something similar is happening here. Novi Zagreb itself is beautifully planned out building-wise, but there's no room for new buildings, while over here afew new construction sites have been opened in this area, which is also a plus for the market,'' added Serdarušić.

In addition, the area of Središće is exceptionally well connected with roads and by public transport to Zagreb's city centre, Franjo Tudjman Airport and the A1 motorway. Quite recently, the construction of a public elementary school began, which will also be a plus for the area.

''Each new piece of content additionally enhances an area. There's already a lot of interesting content [in Središće], including those things which are needed for everyday life, such as shops, banks, services, restaurants, cafes...'' noted Serdarušić.

The price of new builds over the past few years has increased from 1.600 to 2.400 euros per square metre. The price depends on the microlocation, the quality of the building, the location of the apartment within the building itself, its degree of decoration, the floor and of course its overall layout. However, as they say from the previously mentioned Eurovilla agency, some of the smaller apartments can also come with rather impressive price tags up to 3,000 euros per square metre.

However, as Središće doesn't actually have enough luxury and large apartments for diplomats who would like to live near the American school, many remained in Šalata, where this institution was previously located. The demand is bigger than the offer, and Središće is currently the most expensive quarter in Novi Zagreb when it comes to prices per square metre, but they're now at their very peak.

"We had a case a few years ago in Bundek Centre, after the apartments were sold at 1.600 euros per square metre, just a couple of months later, one apartment in that same building was sold for almost double the price per square metre because the buyer was urgently seeking property close to the American high school.

But these are the exceptions, although that building is now managing to keep hold of a high price. In Bundek's new buildings, square metres were being sold for around 2,300 euros. Now apartments in some older buildings in the area have jumped in price, and sellers are looking for 2,000 euros per square metre for the best ones, some of them even offer well-equipped apartments in newer buildings for 3,000 euros per square metre,'' said Boro Vujović, adding that he believed that this trend would eventually level itself out come summertime when people start moving into the large new Meander building, which is now sold out. He believes that this will lower the deficit.

Those particularly interested in this part of Novi Zagreb on the other side of the Sava river, he adds, are US Embassy staff, and now there are American education institutions conveniently located there, too.

The apartments in Središće are also being claimed by employees of companies located in Novi Zagreb. In the long run, there is a chance, however slight, that the fall of its popularity could occur if the quarter becomes too built up, because there are currently several unbuilt areas, in which many construction companies are interested.

''Središće already has a traffic problem upon entering the area when coming from the city centre via the bridge. That needs to be better resolved. I don't think the additional construction will have a negative impact on its popularity, but it's better to have air in the neighbourhood. The recently constructed buildings have a wide access road and, in general terms, in this area, Novi Zagreb is very well designed and should not be over-built,'' concluded Eurovilla's Serdarušić.

Make sure to stay up to date with more on Croatian property by following our dedicated lifestyle page. If it's just Zagreb you're interested in, give Total Zagreb a follow.

Click here for the original article by Korana Sutlic for Novac/Jutarnji

An analysis and a competent partner are being sought by the City of Zagreb.

It seems that Zagreb real estate market has gained momentum - the demand for apartments is higher than the supply.

The demand for renting flats in this time of the year is on the rise, as well as apartments sales.