Value per square meter is on the increase

The representatives from the Croatian Sun office have sent a message to potential buyers in Forbes pages, that the prices of new apartments on the Croatian Coast are half the price of those on the Costa del Sol

The price of real estate in the Dubrovnik area has been growing extremely fast, and is now reaching its peak. Some of the foreigners who bought houses three or four years ago are in the market again –except now they are sellers, not buyers. And just like the local real estate dealers, they are awaiting the decisions of the general urban planning of the City of Dubrovnik. This plan will define the construction zones and will definitely stimulate a new rush of construction within the next year. Hence, a fall in the value of living space is not expected; the question is, will they remain at the present level or is there scope for an increase? The real estate dealers in Dubrovnik agree that the prices of living space in the Old town have reached their top limit. It is the only area in which they do not expect any further increase.

18.000 euro for a square meter of business facility

Thousands of estates have changed hands though in recent years in the actual City of Dubrovnik, as well as at Elafiti Islands, Pelješac, Cavtat and Konavle, and foreign agencies have started setting up offices in Dubrovnik. According to the data published over the past year, in the Dubrovnik-Neretva District, 1,949 estates were sold, estimated at an astounding 800 million kuna. Most of the contracts are located in the immediate Dubrovnik area. But there are plenty who are interested in buying sites in the surrounding area of Dubrovnik, which has become the most attractive part of the Croatian Adriatic coast, because of its historical heritage, beautiful countryside, and relatively well preserved environment.

Goran Pikunić, the head of dealer’s agency “Aedium”, briefly described the present situation saying, “The demand is still very high, and offers are plentiful, but they are often hard to access”.

The highest price for an apartment within the City walls was a little over 7 thousand euro per square meter, and for a business facility,18 thousand euro per square meter. The real estate dealer, Frane Bezić of SPES Agency claims that these prices are the exception rather than the rule.

“A realistic price of an apartment within the City walls is between three and a half and seven thousand euro per square meter, depending mainly on the location and the condition of the property. Higher prices are given to properties with a garden or terrace while the lower prices are for premises close to cafes and restaurants. The apartments in the Old town are generally in bad repair and require high investments for restoration” Bezić points out, adding that the top price for an apartment within the walls of Dubrovnik is 10 thousand euro, provided that it is in perfect condition, fully furnished and at an excellent location.

The full article can be found on pages 58-63 of January 2007 issue.