After several months of stagnation, the real estate market in Zagreb has exploded, particularly in the rental segment, as reported by Večernji list on Wednesday.
Students searching for apartments to rent are facing monthly rental prices of ten and often 15 euros per square meter. Apartments in Zagreb are also in demand from foreigners (mostly from Ukraine but also other countries), domestic labor migrants who work in Zagreb, and even returning IT professionals from abroad who work from home, as it is cheaper for them to live in a rental apartment in Zagreb than in Vienna or Berlin!
Residents from the entire region are rushing to buy properties in this country, without asking about the price.
According to an analysis by the Economic Institute on the real estate market, approximately 30,000 apartments and houses are legally rented out annually in Croatia, of which about 5,000 are in Zagreb. However, everyone knows that there are many more renters. On top of that, the financial status of renters has been further affected by daily apartment rentals to tourists, both in Zagreb and in other major cities. Property owners couldn't have hoped for such a source of income through internet platforms before the rental boom.
Croatians have generally not had doubts about whether it is more profitable to buy or rent a rental apartment and have chosen to buy. Is buying still profitable given the current property prices and rising interest rates? For people who are creditworthy and have relatively decent incomes, it would seem so. The monthly installment for a 150,000 euro loan over 30 years at a fixed interest rate of 4 percent is around 700 euros, which is currently the most common price for a rental apartment of around 60 square meters in Zagreb.