Rising housing prices in Croatia: Every fourth property is bought by foreigners.

The prices of real estate in Croatia continue to rise. The average price per square meter reaches 2326 euros, while in Zagreb it is almost 2700 euros. However, due to the high cost of new buildings and apartments in old buildings, the number of real estate transactions is decreasing and the volume of real estate trade is declining. According to the tax authorities, more than 72 thousand real estate transactions were registered last year, and by September this year - about 50 thousand. In the capital alone, the number of transactions fell by more than 20 percent, HRT reports.

We are seeing a growing discrepancy between asking and realized prices, suggesting that asking prices are too high. We first of all urge apartment owners to lower their expectations, because we see a 25 percent drop in sales since the beginning of this year," says Lana Mihalinec, owner of a real estateagency.

Almost one in four properties in Croatia are bought by foreigners, but they too face problems when buying.

If we compare August last year and now, we had 20 percent fewer interested buyers who would have looked at some property, and this statistic would have been even more dramatic if we had not had the APN in March, which attracted a certain percentage of buyers," said Boro Vujovic, owner of a real estateagency.

The capital is actively building new buildings, but the problem is the lack of quality plots, writes HRT. - Construction is slowing down because of the big increase in land prices, which have gone up more than residential space. This seriously hampers investment, but I think in some cases prices are still inflated, and with these land costs, you can build cheaper," Ranilovich said.