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San Patrik real estate The real estate market continues to be in the expansion phase.

The real estate market continues to be in the expansion phase.

May 7, 2021

If you have ever consulted with experts and asked them about the best time to buy an apartment or other real estate, you have probably received the quick and simple answer: now! In translation, this means that the market is unpredictable, so if you have found an apartment you like (which is not easy in itself), buy it.

However, considering that property prices have been skyrocketing lately, everyone who is considering a financial investment rightfully wonders whether to buy now or wait for prices to drop. In which phase the market currently is, was explained to us by real estate advisor Ivan Varat, and we also learned how to catch the best moment to purchase a property.

Price per square meter of apartments in Zagreb in 202

Although you need to allocate several average salaries for just one square meter of an apartment in Zagreb, real estate is being sold as if there’s no tomorrow, despite the COVID-19 crisis. The average price is around 1800 euros, but this statistical average includes both expensive newly built properties and somewhat more affordable older properties.

“The market is still in the expansion phase, and the demand for quality properties in attractive locations in Zagreb remains high, so I do not expect prices to decline in that segment just yet.”

Ivan Varat from San Patrik Real Estate says that the majority of real estate transactions in Zagreb occur just before the APN competition. Due to high demand, property prices are rising. And at the same time, the interest from buyers is also increasing.


Economic analysts warn that we are facing several years of uncertainty and that it is not advisable to buy apartments in Zagreb or Rijeka at these high prices. But the craze does not stop, and it is difficult to explain even for professionals.

Who are the property buyers today?

Does it seem to you that everyone is in search of their own space? It’s true, the number of housing loans is increasing, primarily thanks to state-subsidized loan installment payments for young people up to 45 years old. About 4,000 applications and the same number of new homeowners are expected at the APN competition. At some point in life, everyone has a need for a change of property, says Ivan Varat.

“Life circumstances don’t ask, so our clients come from all age groups – both young and old. Some need an additional room due to the birth of a child, divorces happen, and property is divided, while older people look for smaller properties that are easier to maintain. The APN program is specifically designed for young people up to 45 years old, so many of them have solved their first property purchase that way.”

Buying the first apartment is a significant milestone in life. And it’s a great pleasure if you don’t have to get into debt for it. There are also those who pay for properties in cash. More than half of the buyers in Croatia pay for properties in cash. Research shows that we are saving more during the COVID-19 crisis. And on our grounds, the excess money is most commonly spent on bricks, i.e., when you save, inherit, or earn a substantial amount of money, buying property is a logical path. Savings interest rates are negligible, and we are not accustomed to investing in stocks and investment funds.

The worst time to buy a property

Due to the pandemic and earthquakes, it was expected that the market would stagnate, and the value per square meter would stabilize or even decrease according to forecasts. Contrary to expectations, property prices are rising. Demand is also increasing, so we are currently in a seller’s market. They dictate the market rhythm and can choose buyers. “In the times of buyers’ market, there are more properties than buyers. Conversely, in the times of sellers’ market, there are more buyers than properties. Multiple buyers are interested in a single property, and almost all quality properties get sold.” However, this does not mean that it is impossible to find your dream property within your budget. Because you should not be afraid of negotiation! Depending on how urgently the seller needs to sell, the asking price can be reduced by 10 to 15 percent. And that is not insignificant. Varat also advises that buyers should be more flexible if they want to save money. For example, with the advice of experts, they should consider looking at properties in cheaper locations. Often, we ourselves do not see the advantages that are available to us.

kupnja stana u naselju

The best time to buy real estate

Life circumstances don’t ask, but when we are limited by personal conditions and finances, it is best to seize a good moment in the real estate market. Given that four different situations are constantly changing, it is good to know which phase we are currently in, says Ivan Varat from San Patrik Real Estate. The constantly changing phases of the real estate market are as follows:

  1. Expansion phase, which is where we currently find ourselves, with prices at their highest level.
  2. Increased supply phase, when demand decreases, balances with supply, and prices stop the upward trend.
  3. Recession phase, when demand for real estate is low and prices drop to the lowest level.
  4. Recovery phase, when demand begins to revive, and prices start to rise again.

We don’t have a crystal ball and don’t know when prices will start to fall, any serious real estate agent will tell you that. The fact is that demand is currently high, especially for newly built properties that are sold before the foundation is poured. However, there are more building permits being issued, which means that at some point, buyer demand will be satisfied. And that’s when we enter the second phase, the trend reversal.

How to decide when is the best time to buy an apartment?

If you have made a firm decision that you want a new home, the next step is to finalize the financial structure, which involves a detailed analysis of how the property will be financed, whether it is checking creditworthiness at a bank or selling a property. Don’t forget that there are many hidden costs, so it’s good to have savings. The most common amount of the down payment is around 10% of the agreed price, which the buyer must finance with their own funds, while the remainder can be financed through a mortgage from one of the banks. It is then important to define your criteria and priorities wisely because it is almost impossible to find the perfect property. Currently, we are in the expansion phase of the market, where demand is high, interest rates are low, and as a result, we have record-high prices, so adjustments need to be made. “The best time to buy real estate is highly individual. Although prices in some neighborhoods in Zagreb are soaring, there is always the option to expand the search to alternative locations where prices can be very favorable considering the quality of life they offer. The most important thing is for the buyer to find a property in which they feel comfortable and that fits their budget. There are always opportunities and room for negotiations in the market.” It is important to be persistent, and if you need support and cannot decide when is the best time for you to buy real estate, reach out to the experts at San Patrik Real Estate, where you can expect personalized approach and good vibes. Author: Ivana Alfier,


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