Tuesday, 21 May 2024
Real Estate prices in Croatia should remain stable after Euro Real Estate prices in Croatia should remain stable after Euro

Introduction of Euro not expected to affect the Croatian real estate market

Written by  Nov 03, 2017

According to local economic experts, the announced introduction of the Euro as the official currency in Croatia should not increase real estate prices.

Croatia’s entry to the Eurozone is expected inside the next five to seven years, depending on when the government will submit a request for membership in the Eurozone, as well as on further fulfilment of the tasks Croatia is required to complete.

Economic experts emphasize that they do not see how the entry into the Eurozone could affect the real estate prices as they are already quoted in Euros. The effect of such entry is usually reflected in prices that are converted from domestic to Euro prices, for example, by rounding up, which then results in a rise in the cost of living, whilst real estate is already built, sold or purchased in Euros.

Mojca Kufner, the Head of Market Research, Product Development and Marketing Department at Zagreb Nekretnine pointed out that Croatia’s real estate market is already closely related to the Euro.

‘’All sales prices are already quoted in Euros as well as cost-effectiveness analyzes of projects, construction costs, etc. thus, I think that the introduction of the Euro will not significantly affect the real estate market’’, explained Kufner.

It is interesting to note that the neighbouring country of Slovenia marked ten years of the introduction of the Euro on the 1st of January this year. According to data, since 2007, the country recorded an increase in the cost of living by 20 percent, whilst the average salary rose by 30 percent.

The Voice of Dubrovnik


Find us on Facebook