Real-estate prices down in Zagreb in March

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Experts say the real-estate price correction continued in March in Zagreb.
Real-estate website CentarNekretnina.net, which surveyed 177,000 prices of real estate, said the average price in Zagreb fell by 0.3 per cent in March compared to the previous month and by 2.1 per cent compared to March 2008.
Prices on the Adriatic coast were up by 2.3 per cent from a year earlier and by 0.8 per cent compared to February.
Prices in Croatia as a whole did not change, compared to February 2009 or to March 2008.
The average price of a flat in March was 1,964 Euros per square metre in Zagreb and 2,287 Euros per square metre on the Adriatic coast.
Flat prices are higher on the southern Adriatic coast .The average price of a flat in Makarska in March was 2,487 Euros per square metre, while the average price of one in Crikvenica was 1,826 Euros per square metre.
CentarNekretnina.net head Domenico Devescovi said he expected further real-estate price corrections and continued price differentiation.
Devescoci said: "Despite that banks have started offering housing loans with lower interest rates, sales have been few in number. Regardless of more-favourable financial conditions for buying flats, Raifeissen bank has made only eight loans in the last three weeks. It is a sign that prospective buyers are waiting for prices to fall further. At a time of financial crisis, people postpone all long-term investments, especially buying flats with borrowed money."

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