Inflated real estate prices

Experts warn that the expectations of property owners are becoming increasingly unrealistic. The trend of increasing the difference between the requested and realized price of the property continues. Still, there are parts of Croatia where traffic is low and real estate prices are extremely low.
In contrast to traffic in several coastal counties and the City of Zagreb, it is three to four times higher than in the rest of Croatia. In other words, the prices of certain properties are increasing, but not for others. Prices are rising in some parts of Croatia, but not in others. On the outskirts of the city, new construction is sold at a price of less than 2,000 euros/m2, while on the other hand there are properties that reach a high price of more than five thousand euros per square meter. This is not a realistic picture of the market.
There will always be quality real estate, related to the sea and tourism or in Zagreb as the capital, which will fetch a price.
There are also those who will not be able to realize the requested price due to the increasing trend of the difference between the requested and the realized (sale) price.
In the past two years, the real estate market has been affected by the coronavirus pandemic, as well as the earthquake in Zagreb, as well as the increase in the price of construction materials. Currently, the builders themselves say that the situation regarding the price of construction materials is relatively calming down.
In addition to residential real estate prices, land prices are also inflated, so everything adds to the high real estate prices.
For now, real estate prices are not expected to fall, although in some parts they have reached their peak.
The asking prices are obtained only for new construction, because it is bought as an investment, with the security of housing due to earthquake-resistant construction. The rise in real estate prices started in 2017.
When buying used real estate, the highest demand is for real estate built from the 1980s onwards. We are looking for urbanized settlements with all the infrastructure. The prices of such properties are also on the rise
In the center of the city, which was the most affected by the earthquake, traffic has been cut in half, and customers are less likely to make a purchase.
The reason for the high and inflated real estate prices is that there is relatively less construction than in 2000.
There is still a trend of overestimating the value of real estate, in accordance with the expectations of the owners.
For the same reason, the sale of used apartments takes much longer.
Unfortunately, any property that does not have a realistic market price is very difficult to sell.
We remember the global crisis in which we ourselves were to blame because we "inflated the bubble".
Experts say that only the introduction of an additional tax can curb the rampant real estate prices.