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San Patrik real estate Why is a small apartment in Zagreb among the most desirable properties on the market?

Why is a small apartment in Zagreb among the most desirable properties on the market?

July 25, 2021

Why is a small apartment in Zagreb among the most desirable properties on the market? Small apartments in Zagreb quickly disappear from listings and sell the fastest because there is high demand for them. Apartments under 50 m² with one or two separate bedrooms, located in the tram zone, are the most sought-after characteristics of a small property. However, there is a shortage of such smaller functional apartments, especially in new developments. You can check the current status here.

Why is a small apartment in Zagreb among the most desirable properties on the market? Small apartments in Zagreb quickly disappear from listings and sell the fastest because there is high demand for them. Apartments under 50 m² with one or two separate bedrooms, located in the tram zone, are the most sought-after characteristics of a small property. However, there is a shortage of such smaller functional apartments, especially in new developments. You can check the current status here. Here’s why the interest in these properties continues:

Selling a small apartment

In the real estate world, a smaller apartment refers to a residential space ranging from 35 to 50 m². Apartments with one separate bedroom up to 40 m² and two bedrooms up to 50 m² are particularly in demand, explains real estate advisor Ivan Varat.

For small apartments, a good layout is important, meaning that the space shouldn’t waste too much area on hallways or unnecessary rooms, and the rooms should not be too small. Ivan Varat, real estate advisor

Even a small apartment can have a highly functional layout that meets all the owner’s needs. An important factor that influences the demand for such apartments is their competitive price in the market.

Demand for smaller living spaces

There are smaller apartments available on the market, but not enough. They sell very quickly. When they appear in advertisements or on agency websites, it takes less time for them to be sold compared to larger apartments. Buyers are willing to pay the advertised prices for smaller apartments. In situations where there are two buyers interested in the same apartment, people even make higher offers than the listed price, which is not a common occurrence, according to the experience of San Patrik real estate agency. There are several factors that contribute to the high demand for smaller apartments, as explained by real estate agent Kristina Matušić. The overall price of such a property is more affordable and therefore more acceptable to a larger number of buyers. Such a property is considered a good investment, and for buyers who purchase it for living, a lower utility bill is an important argument, leading to lower living costs in such a property. Kristina Matušić, real estate agent

mali stan u zagrebu - osoba sjedi u dnevnom boravku svoga stana i radi na prijenosnom računalu

Who are the buyers of apartments under 50 square meters?

A smaller apartment requires less maintenance, providing its owner with more free time. As Kristina mentioned, the utilities are also lower. Buyers of small apartments are often singles, but they are also popular among older individuals. There are different needs, so on the other hand, parents buy smaller apartments for their student children, but they are also sought after by people who have extra money and invest in real estate for long-term or short-term rentals.

Prices of small apartments

Considering that interest rates on bank deposits are very low, tending towards zero, investing in real estate remains the most desirable form of saving and investment in our country.

Smaller apartments are in high demand on the market because they are the cheapest in absolute terms. However, when looking at the price per square meter, smaller apartments are more expensive than larger ones. Most people can afford an apartment between 80,000 and 100,000 euros. Ivan Varat, San Patrik real estate

Depending on the location, the price range for a small apartment in Zagreb ranges from 80,000 to 130,000 euros. According to data from San Patrik real estate agency, a small apartment in an older building can be found for 1,500 – 2,200 euros/m², while in new developments, prices range from 2,000 – 2,800 euros/m². Price of apartments under 50 m² in Zagreb neighborhoods: In the city center, where the prices of new residential properties per square meter range from 4,000 to 8,000 euros, there are hardly any small apartments, and they are not being built. Here’s how it looks in other neighborhoods with average prices for new developments of smaller apartments: DUBRAVA – 2,100 euros/m² ŠPANSKO – 2,100 euros/m² JARUN – 2,900 euros/m² TREŠNJEVKA – 2,800 euros/m² Data source: San Patrik real estate Experienced real estate agents estimate that the price difference between old and new buildings should be at least 500 euros/m², if not more. The final price also depends on the specific neighborhood’s surroundings. For example, if there is a lack of new construction in the immediate vicinity, it is possible that an apartment in an older building will achieve a price that many would consider unrealistic. Smaller apartments in older buildings under 50 m² can reach high prices compared to prices in new developments because they are highly sought after. The supply is limited, and there are very few of them in new developments. In most cases, you have to buy them at the beginning of the construction phase, and many buyers are skeptical about this model.

mali stan u zagrebu - slika prikazuje dnevni boravak manjeg stana

Tips for buying small apartments at a better price

If the price of a small apartment is set correctly, they don’t stay on the market for long. That’s why many buyers opt for real estate agency services, as they have a better overview of the market. By knowing your preferences regarding location, layout, and the condition of the apartment, they can inform you as soon as a new apartment of that kind appears on the market.

There is often a situation where two or more buyers are interested in the same apartment. The property is usually purchased by the one who reacts more quickly. When actively searching for a property, it is advisable to have a certain amount of money prepared as a deposit so that you can negotiate the details with the seller, sign a preliminary contract, and pay the deposit on the same day. Kristina Matušić, real estate agent

Before buying an apartment, the buyer should have a minimum of 10 percent of the total purchase price secured as a deposit, agrees real estate advisor Ivan Varat. Buyers with cash seem to have an advantage.

A buyer who finances the apartment with cash, meaning they don’t need a bank loan, has an advantage because they can complete the entire transaction more quickly. Sellers of apartments see this as an advantage. Ivan Varat, San Patrik real estate

Tips for buying small apartments at a better price If the price of a small apartment is set correctly, they don’t stay on the market for long. That’s why many buyers opt for real estate agency services, as they have a better overview of the market. By knowing your preferences regarding location, layout, and the condition of the apartment, they can inform you as soon as a new apartment of that kind appears on the market. There is often a situation where two or more buyers are interested in the same apartment. The property is usually purchased by the one who reacts more quickly. When actively searching for a property, it is advisable to have a certain amount of money prepared as a deposit so that you can negotiate the details with the seller, sign a preliminary contract, and pay the deposit on the same day. Kristina Matušić, real estate agent Before buying an apartment, the buyer should have a minimum of 10 percent of the total purchase price secured as a deposit, agrees real estate advisor Ivan Varat. Buyers with cash seem to have an advantage. A buyer who finances the apartment with cash, meaning they don’t need a bank loan, has an advantage because they can complete the entire transaction more quickly. Sellers of apartments see this as an advantage. Ivan Varat, San Patrik real estate Buying an apartment or a house should never be taken lightly. We make that big step once or twice in our lives, so considering the overall investment for which we usually borrow money, caution is necessary. No matter how attractive a property may seem, buyers should never agree to purchase a property with disputes, encumbrances, or burdens, in other words, when the “papers are not clean.” This opens up the possibility of major problems, advises Ivan Varat. Some encumbrances can be resolved and are not potential dangers, but in such situations, Varat strongly advises buyers to consult with experts from a real estate agency or law firms. Author: Ivana Alfier, Stanarica.hr

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