Coronavirus has a global impact on all areas of business, especially in the financial sector, and the global business travel industry. Considering that Croatia is isolated in one sense, speaking of islands in particular, the entire southern part is functioning normally, although a bit slowlier, for now. In real estate, this is reflected in multiple directions. Labor field has been narrowed down to the locals and increasing the offer for the period to come after the Coronavirus.
Although real estate visits have reduced, there is still interest from the abroad as well as inquiries about real estate on the islands and along the coast, which have in some way been paused during this period, and will surely reactivate when this crisis ends, when the borders will be reopened as well as the traffic of people. Certainly, all existing jobs are neatly getting complete.
After that wave, when most of Croatia will be in self-isolation, the economy will gradually return to its feet. Depending on when the end of the health crisis will come, we can respond and work on whatever has been put on hold.
In the leasing section, we expect the biggest changes. Given that there are no new bookings for the tourist lease at this time, there are a number of cancellations for the period from April to June, and reservations for July, August and September are still active, as it is believed that the coronavirus will disappear by then.
Such a situation can result in an increase in apartments for a longer period, more precisely at least for a year, and precisely such apartments that are otherwise rented out to tourists. Owners who want some security will act in this way and if they have too few bookings or more cancellations. Therefore, a larger number of apartments will appear in the real estate market for a longer period, which means that prices of such apartments will have to go down by some 10 to 15%.
Every month of renting an apartment that has not been rented has run out of profits and it is in the owner's interest to rent the apartment at a realistic price as soon as possible.
Concerning the sale of real estate, it is certain that a number of real estate will turn up for sale, those under loans, in tourism and whose inflow of funds has been significantly reduced due to the epidemic.
Certainly, given the uncertainty of what the epidemiological picture will look like over the next few weeks, we in the real estate sector are hoping for a recovery in the market, in some changis of offer and demand, where offer will increase by a certain percentage, and the return of Buyers from abroad, who are also our most numerous clients.
Added: 15.03.2020.
Category: CROATIA REAL ESTATE NEWS
