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Rising Rental Prices and Dwindling Supply: Challenges in Croatia's Housing Market Canva

Rising Rental Prices and Dwindling Supply: Challenges in Croatia's Housing Market

Written by  The Dubrovnik Times Mar 26, 2024

In Croatia, there are currently around eight thousand apartments available for rent, with over three thousand of them located in Zagreb. The demand is high, the supply is dwindling, and rental prices are constantly on the rise. Finding a quality apartment at a reasonable price, one that won't require a hefty chunk of your income every month, has become increasingly difficult, writes HRT.

Young people, mostly students, as well as young families, encounter problems with renting across Croatia. The most common issues include unrealistic prices and sudden contract terminations.
Miro Čabraja, who has been searching for an apartment to rent in Zagreb for two months now, describes it as a mission impossible.

"I've been to Dubai and London recently, and I have to say that Zagreb's rental prices have skyrocketed. For example, for 800 euros, the amount I'm looking to rent an apartment for in Zagreb, you can rent a place in Dubai as well," said Miro Čabraja.

The rising rental prices in Zagreb are influenced by the increasing migration of both domestic and foreign workers, as well as the renting out of apartments for tourism and the rising sales prices.

“Currently, we are noticing an equalization of both rental and sales prices. Unlike last year, we have seen a 20 percent increase, meaning that rental prices and mortgage rates are now equal," said Filip Brkan, a member of the Real Estate Business Association Council at the Croatian Chamber of Economy.

The highest demand is for apartments up to 60 square metres. Agents say that it has become almost impossible to find a quality rental apartment at a reasonable price.

"There is an absolute lack of rental apartments because there is no policy in that direction, individuals have to fend for themselves. An example of this is foreign workers who are also present in the Croatian market, employers who find accommodation for them, and thus fill certain real estate funds," said Jelena Kravošćanec Todorović, a real estate agent.

Despite legal regulations, the rental market is chaotic, say lawyers. Some landlords still insist on oral agreements, leading to a number of problems.

"The landlord believes that the conditions for retaining the deposit have been met, while the tenant believes that this is not the case. Tenants often point out the problem of entering the apartment during the rental period. The law allows for the inspection of the rented apartment, but this must be defined in the contract," said Vedran Ceranić, a lawyer.

In Croatia, there are around eight thousand apartments available for rent. Three thousand are built each year. All of this is insufficient considering the ever-growing demand.

The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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