Real estate prices out of control in Dalmatia
The Croatian coastal town of Split has seen a 30 percent rise in residential construction levels over the past two years. Everything that comes to the market is sold, including new product in elite neighborhoods where prices can reach €4,000 per square meter. Demand is outstripping supply and prices are rising quickly, especially in expensive neighborhoods like Znjan and Majam. Nationwide, around 20,000 properties are sold annually.
According to the deputy chairman of the HGK Real Estate Agency, Jasminka Biliskov, investors are increasing prices to whatever level they think the market will pay for. However, she predicts that the price increases have gone too far and that a crisis will erupt within a year. While Biliskov does not expect a complete meltdown as the one from a decade ago, it's realistic to expect a fall in prices.