In Croatia, real estate prices are soaring compared to last year.

Property prices in Croatia rose by approximately14% in the first quarter of this year compared to the same period last year and by73.6% compared to2015, according to state statistics published on Wednesday.

The prices of real estate in the country continue to rise, especially after Croatia entered the Schengen visa-free zone and the euro zone..

Commercial real estate is growing exponentially while residential property prices increased by just 2%, according to data released by the Central Bureau of Statistics (CBS) on Wednesday.

However, despite price differences between Zagreb, Adriatic and other parts of the country, residential real estate prices are gradually rising, according to the CSB data, which recorded an increase of 73.6% from the beginning of 2015 to this year.

This unpleasant trend, also seen in other parts of Europe, probably prompted the European Central Bank (ECB) to promise a sharp drop in residential real estate prices in Croatia and other eurozone countries, which Croatia joined at the beginning of the year.

However, available data indicates that this period of rising real estate prices is over, real estate experts warn. "The expansion in real estate prices has obviously come to an end. A correction in real estate prices is expected to occur late this year or early next year, especially for former properties. However, a collapse in prices and the market will not happen," said the vice president of the Real Estate Business Association.

However, the available data also shows that real estate price growth in Croatia has slowed down and has almost stopped in Zagreb. "There is already a big difference in the market between the expectations of buyers and the expectations of real estate sellers.

He also points to the growing difference between the sale prices that sellers are asking and those that buyers end up paying, noting that the difference ranges from 5 to 20 percent depending on the neighborhood where the property is sold.

However, the price per square meter of residential property remains high, especially in Zagreb - prices range from around 3000 euros for new buildings to around 2600 euros for former apartments. On the Adriatic, on the other hand, prices vary from one part of the coast to another. For example, in Dubrovnik, housing prices are now around 3,700 euros per square meter, while in Istria they are around 3,000 euros, Vujovic added.