Croatia post Covid: will it recover?
All eyes are now on how Covid has radically transformed the international real estate markets. In a period when it seemed that buying a property was a safe investment, a pandemic crisis was enough to change the tables. We have often given an overview of the progress of the national and European brick. Trying to understand where it is worthwhile to invest or, in general, how this step can be positive for our portfolio of interests.
Today we decided to place a singular case under the watchful eye of our team. That of a unique land, wonderful but which currently seems to be in difficulty. We are talking about Croatia. Let's find out, therefore, together, how this country is moving, so enviable for its naturalistic beauties. Let's start with the May data. During the so-called phase 2, Croatia was not totally involved in a real uncontrollable health emergency. In fact, we are talking about just over two thousand cases, 80 deaths and 1500 recoveries (again in May). A roughly positive situation compared to many other European realities that have been the protagonists of this criticality of biblical dimensions. Yet the ideal state where you can invest in real estate in peace seems to be wavering. The setback was given not so much to the health sector as to the economic one. And the projections certainly do not bode well. Of course, because it must be remembered that in the same period last year, Croatia was qualified for the fifth consecutive year as a growing nation. Both on a tourist level but above all thanks to the real estate sector. Not surprisingly, this land is suffering greatly from this pandemic emergency.
According to what was declared by the president of the Association of real estate agencies, Jutarnji List, at this historic moment, only those who are forced to do so sell in Croatia. Which means that the phantom real estate bubble could be around the corner. It is not a question of simply lowering prices. But of a stalemate, uncertain, practically stopped. Many expert scholars in the sector state that, probably, the bubble risk had already been present for some time. It had simply been "buffered" by the huge tourist wave that, of course, has always characterized this nation. And at a time when the tourism sector has also proved an unknown factor for the national economy, it is not surprising how the problem limited to the Croatian brick has emerged.
Unlike other nearby realities, Croatia has therefore decided to invest in the fight against the Covid emergency (which has not proved to be so burdensome in numerical terms) with respect to protecting the economy. How will the real estate market evolve? Will the dreaded bubble burst or is there still a margin of hope for the Croatian brick? In the meantime, before we have new news to share together, we invite you to stay tuned to our portal!
Today we decided to place a singular case under the watchful eye of our team. That of a unique land, wonderful but which currently seems to be in difficulty. We are talking about Croatia. Let's find out, therefore, together, how this country is moving, so enviable for its naturalistic beauties. Let's start with the May data. During the so-called phase 2, Croatia was not totally involved in a real uncontrollable health emergency. In fact, we are talking about just over two thousand cases, 80 deaths and 1500 recoveries (again in May). A roughly positive situation compared to many other European realities that have been the protagonists of this criticality of biblical dimensions. Yet the ideal state where you can invest in real estate in peace seems to be wavering. The setback was given not so much to the health sector as to the economic one. And the projections certainly do not bode well. Of course, because it must be remembered that in the same period last year, Croatia was qualified for the fifth consecutive year as a growing nation. Both on a tourist level but above all thanks to the real estate sector. Not surprisingly, this land is suffering greatly from this pandemic emergency.
According to what was declared by the president of the Association of real estate agencies, Jutarnji List, at this historic moment, only those who are forced to do so sell in Croatia. Which means that the phantom real estate bubble could be around the corner. It is not a question of simply lowering prices. But of a stalemate, uncertain, practically stopped. Many expert scholars in the sector state that, probably, the bubble risk had already been present for some time. It had simply been "buffered" by the huge tourist wave that, of course, has always characterized this nation. And at a time when the tourism sector has also proved an unknown factor for the national economy, it is not surprising how the problem limited to the Croatian brick has emerged.
Unlike other nearby realities, Croatia has therefore decided to invest in the fight against the Covid emergency (which has not proved to be so burdensome in numerical terms) with respect to protecting the economy. How will the real estate market evolve? Will the dreaded bubble burst or is there still a margin of hope for the Croatian brick? In the meantime, before we have new news to share together, we invite you to stay tuned to our portal!
