ZAGREB, CROATIA - In January, the Croatian real estate market recorded a fall in trading, between 70 and 80 percent compared to the same month last year, which could close numerous real estate agencies that are intermediaries in the trade of real estate, said Dubravko Ranilovic. Ranilovic is the president of the association of real estate trade in the trade sector of the HGK (Croatian Economic Chamber).

Data from the start of the year from the real estate market is catastrophic, the recession could sweep us away, and whoever survives will certainly operate for a long time, said Ranilovic at the distribution of certificates to those who passed the expert exam for being intermediaries in real estate trade.

He added that more than 20 percent of construction companies are blocked, tourist companies are having trouble, and all of this reflects on real estate trade.

He said that real estate prices have fallen, but that this does not have a significant influence on trade volume.

Interest rate growth can be felt

Ranilovic says that in his opinion, the harder financing and recession psychosis are the reasons for the fall, and the largest problem could occur if banks stop financing the citizens and the development of projects.

He says that the negative consequences of interest rate growth, stricter crediting conditions and Kuna exchange rate can already be felt.

In his opinion, the Croatian real estate market is suffering because banks that are owned by foreigners are implementing conditions for giving credit like on their home markets, where the crisis is more pronounced.

33 candidates participated at the Croatian Economic Chamber (Zagreb branch) ceremony, who gained the right to enter the HGK list of agents for being real estate intermediaries.

HGK is authorised to issue certificates on the basis of the law on real estate trade intermediaries that was passed in 2007.

The law gave real estate agencies a one and a half year deadline to hire an agent that is certified by the HGK.