EMIGRATION OF YOUNG PEOPLE
“I want to sell an apartment in a great location in Zagreb and buy a house in the vicinity of the city”. Experts: 'With that budget it is impossible'
A reader's inquiry prompted us to explore the offer of family homes of quality construction, neat ownership documentation and realistic market prices
The high prices of real estate and the cost of living, further driven by the coronavirus pandemic and earthquakes, have affected the living habits and priorities of many citizens, which a few years ago resulted in a sharp increase in demand for houses on the outskirts of Zagreb or outside it, where for the same price you could get a significantly larger living space with a garden of grateful area in a much quieter environment. This trend has weakened in the meantime, but it is still noticeable that a certain number of citizens, and among them there are young people, tend to leave the capital.
So a younger reader turned to us for advice related to selling an apartment in Črnomerc and buying a house in the vicinity of Zagreb up to 150,000 euros. His challenging financial crossword got us interested so we decided to explore how much he can get for his apartment and what's on offer in his budget.
Namely, he would like to sell a habitable and furnished apartment of 66 square meters with one bedroom and a terrace of 14 square meters that offers a panoramic view of Zagreb, and is located on the first floor of a building from 2006 in Bijenik and has a garage parking space. He counts that for him - taking into account that according to most criteria this apartment belongs to the best-selling type of apartment in Zagreb; the one with an area of 45 to 65 square meters with one to two bedrooms, which does not need significant additional investments and is in the area of public transport of the city - he could get 3000 euros per square, if not more. By selling the apartment, he would pay off the existing housing loan and with the remaining amount of 150,000 euros he bought a house in the vicinity of Zagreb.
“Would this amount be enough for a house with an area of 80 or more square meters on a stretch west, north or east of Zagreb, about 30 minutes by car to the wider city center? I am thinking of a ground floor or a multi-storey house, preferably without an outdoor staircase, with a backyard so the dog can be outside too, perhaps a smaller garden to cultivate in the future. It is important to me that it is habitable, that it does not need to be adapted, that it is in a quieter environment, but again that it is not somewhere in the middle of the forest or in a secluded place; that the location is covered by an Internet network for possible work from home and that it has connections for water, electricity and gas”, he enumerates to us.
Is it even feasible? We tried to find the answer at several addresses.
The real estate agency Eurovilla says it is difficult to expect an apartment in a 2006 building, which has lost the status of a new building, to achieve a price higher than 3,000 euros per square meter.
- The price of 3000 euros per square is justified for the reason that the area of the apartment is attractive and in demand, the same as the position of the apartment in the building on the first floor without elevator, terrace with views and secured parking that goes next to the apartment. The apartment, given the years, needs certain investments. In addition, the location is well connected by transport to the rest of the city - he says Ivan Ukalovićfrom the Eurovilla agency.
His colleague Zenon Pavicadds that young people most often look for apartments in organized settlements in Zagreb in the tram zone, but often because of the affordability of their home they “leave” the city crowd, and at the same time they most often go to the surroundings of Zagreb, for example to Samobor, St. Sunday, Vinju Reku, Dugo Selo...
- Houses are most in demand in Samobor and the surroundings of Samobor, which is why prices in these areas have increased significantly, and from year to year we are seeing an increase in supply especially in the segment of low-energy detached buildings - says Pavić, adding that houses west of Zagreb are usually more expensive than those on the east side. Depending on the location itself, the size of the house and the year of construction, the price range of old buildings ranges from 700 to 1,300 euros per square, while new houses often reach prices of more than 2000 euros per square.
- We think that in today's market conditions it will be a challenge to find a house of suitable quality and square footage for the amount of 150,000 euros. Unfortunately, we currently do not have adequate houses in our offer according to the set criteria - they say in Eurovilla.
And for Dianu Pergerfrom the agency Euro-interiorsthe desired calculation is a bit too optimistic, but if the available budget for buying a house could be slightly increased, the offer would be slightly better. But this is unlikely to materialize with a higher purchase price of the apartment.
- The story is quite risky if we say that the house should be in Zagreb County, in places like Zaprešić, Samobor, Sveta Nedjelja, Sesvete, Dugo Selo..., and if we foresee that this house should be further adapted or at least adapted to the tastes of the new owners, because this investment is also included in the final price - comments Diana Perger and estimates that the real price for the sale of an apartment would be 3,000 euros per square, since looking at the agency's database one can see the sale of a similar apartment, albeit with a better layout and location closer to the center, for 3,178 euros per square.
- But the realized purchase amount should again be reduced for the debt on the loan, the cost of early repayment of the loan, for the service of an agency, possibly a lawyer... If it is assumed that after the sale of the apartment there remains an amount of 150,000 euros available to buy the house, the same should be reduced by approximately 6,000 to 8,000 euros for the cost of real estate tax, the expense of agencies/lawyers, moving... Thus, a house should not cost more than 140,000 euros without any additional investment and/or furnishing. Houses for this amount, and if they are built with high quality and have proper ownership documents, it is almost impossible to find in Zagreb County. Possibly in smaller cut off villages in Zagreb County, around Pregrada and Lekenik, or in cities such as Karlovac and Sisak, but this raises the question of availability of all necessary facilities - he comments.
The offer of houses in the vicinity of Zagreb is, he adds, rich, but if we are guided by the criteria of quality construction, good location, proper ownership documentation and realistic market prices, then it is no longer so impressive.
- There is a lot on offer on the house market and when you look at the real estate ads, you get the impression of a wide offer, however when you 'scratch' below the surface, the number of quality houses that meet all the above criteria is drastically reduced, I would say in half. Thus, prices also vary, and the range is extremely large; it ranges from 150,000 euros, rarely lower, to a couple of million euros for attractive villas in prestigious locations - says Diana Perger.
Maja Kelekovićfrom the agency Biliškov nekretnine agrees that the asking price of an apartment for 3,000 euros per square meter is realistic, but she also points out that the possibilities with a budget of 150,000 euros are limited, especially for habitable houses that meet all the required criteria.
- The supply of such real estate is rare, and when they appear, they quickly find a buyer. The offer is more often older houses that require some renovation or, on the other hand, new buildings that are priced above average. Houses in good condition, which meet the conditions of habitability and have all the necessary attachments, are quickly sold, which limits the choice. Demand outstrips supply, especially for properties that do not require additional investment - says Maja Kelekovic, adding that older houses that require renovation can be found for about 1,000 euros per square, while new buildings or renovated houses in better locations are sold for 2,500 euros per square meter and even more.
- In general, the prices of houses with a garden that do not require major investments range between 150,000 and 300,000 euros, depending on the location and condition - says Maja Keleković.
In addition to Zagreb County, Opereta Real Estate agency records demand for houses in Krapina-Zagorje County, but with the condition that all essential amenities are nearby. These, says Valentina Benko Matijevic, would be places like Zabok or Stubičke Toplice.
- The demand for new construction is emphasized, and there are not many such houses in the vicinity of Zagreb, and if we talk about the stated price - there are none at all. But there are some houses of older construction that would meet the required criteria - says Valentina Benko Matijevic from Operetta, which does not leave much room for our reader: if he cannot get a larger amount for an apartment, he will have to raise a new, smaller loan to compensate for the difference for buying a more expensive house or compromise on the desired criteria, ie location, area...
Who are the buyers of houses in the vicinity of Zagreb?
Most of our interlocutors point out that experience shows that most young customers remain attached to Zagreb neighborhoods that they know well, while those who leave Zagreb more often choose the coast or go abroad.
- Calmer suburban places are chosen by older generations - says Maja Keleković from Biliškov Real Estate. She also agrees with Diana Perger from Euro-interior, which points out that suburban settlements of family houses that are in a quieter environment, but close to all necessary facilities and public transport, such as Rakitje, Sv. Nedelja, Zapresic or Dugo Selo and the surrounding area east of the city.
- Analyzing the statistics and buyers of houses outside Zagreb, young people still prefer to live in apartments in urban areas and rarely decide to live outside Zagreb. This trend of buying houses outside urban areas among young people was relevant in the era of corona and earthquakes, today the buyers of such real estate are elderly buyers, people who are retired or who are about to retire - says D. Perger.
Published: 09 November 2024