ANALYSIS OF THE REAL ESTATE MARKET ON THE ISLAND OF KRK
The real estate market in Croatia, including the island of Krk, began developing 20 years ago and experienced its greatest growth before the economic crisis. After the failure of the entire market in 2008 and 2009, the market has stabilized and managed to keep this status so far. Regardless of the impact of crisis throughout the country, the island of Krk remained until the present day very attractive to property buyers, especially because of its good transport connections, infrastructure, above average development in real estate sector, as well as the proximity to major European cities, which makes it an ideal weekend destination that can be reached by car. In addition, the Croatian accession to the European Union resulted in growing interest and increasing purchases of properties by foreigners, especially Austrians, Germans and Italians. However, one can note a visible segmentation in interest purchase of properties. There is still a great interest in properties of lower price range, but also in high-end properties by the sea, arranged in accordance with the highest standards and latest trends. One can also notice a somewhat weaker interest in "average" properties in not so attractive locations, which is mainly the result of the middle class purchasing power.
The market that experienced the highest growth in the sales of properties is the market of luxury properties in attractive locations. Namely, for the buyers, these properties represent also a good investment since the prices of high-end properties in attractive locations rarely experience a bigger dropdown. If it is a new, luxury property in carefully selected attractive location, it is usually sold already during the construction itself or in the year of construction. The prices of such properties primarily depend on the location, that is, proximity to the sea, the quality of design, quality of construction and the very arrangement of the property. Open sea view, since recently one of the decisive factors in selection of a property by the end customers, can also have a significant impact on the price. For example, apartments in excellent locations with sea view often achieve prices from 3000 - 5000 EUR per square meter. Concerning houses, the situation is somewhat different because the price, besides the location, depends on the size of the plot on which it is built, arrangement of the facility and courtyard, additional contents and its overall impression and therefore their price ranges from 2000 EUR until 5000 EUR per square meter.