Croatia Real Estate Report 2015
BMI View: The economic situation in Croatia is poor, although we expect to see a marginal improvementover 2015. Investment potential is low due to the low demand for real estate in most sectors, with theindustrial real estate sector the most positive with a demand for premium grade warehouse space andlogistics centres. Development activity is also low in all sectors as a more certain economic outlook isdesired by investors before positioning themselves in this market. Investment focus is being drawn to closeCEE neighbours who present more attractive investment opportunities, and as such, stagnation is thedescription of the real estate market in Croatia in 2015.
The tentative economic and political situation in Croatia will affect all three real estate sectors we coverwith foreign investor activity low and therefore shifted towards other regional markets, and overallconfidence low in the national market. Recession looms for the country and development activity is low forall sectors. The Croatian economy is currently at a plateau in growth in 2015, with growth set to return from2016 onwards, albeit at low levels. Foreign direct investment in the country is low with the reducedconfidence from investors in all sectors which is acting to sustain this period of stagnation which hasafflicted the country for the past few years. Bailout terms threaten to further damage the national economythrough recession; however inclusion to the EU has bolstered the country's standing globally and avoidedfurther downturn in the short term.
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