European real estate market based on the average transaction volume from 2015 was about 69 percent related to hotel real estate, 29 percent to office space, and two percent to retail. With signs that the economy was starting to come out of recession, the real estate market had started recovering and the projections for 2016 were optimistic.
Reports from Poslovni.hr on March 27, 2016 stated that the investors last year had shown an obvious interest in the domestic market due to the mix of recovery, historically low prices in the euro zone and a more positive business climate, with hotels gaining the most attention. The consulting firm Colliers International expected various new development transactions and projects. After several years of decreasing liquidity, large investment transactions were expected in 2016, particularly in retail and office space. The Colliers analysis said that prices have decreased, opening the possibility for bigger returns.
European real estate market mosaic which depicted positive prospects for the local economy also showed that the market was in the middle of the economic cycle. In Europe, due to lower interests, there were less investment possibilities, and in Croatia, where European rules applied, the first group of investors had already completed the first projects. The successful ones were now attracting the attention of mostly foreign investors. These were the luxury office buildings, shopping malls and hotels, according to a report from Total Croatia News.
Vedrana Likan from Colliers said that all of these were mature products, and their most significant characteristic was that they could be sold. In retail, large transactions for this year had already been announced. Six centers were changing their ownership plans. For example, Morgan Stanley was finishing the purchase of City Centers One East in Zagreb.
European real estate market, according to Colliers, was also predicted to increase in terms of rental costs. In the top sectors of Zagreb, they ranged from 20 to 25 euros per square metre per month, and they have reached the top not long ago, according to the same report from Poslovni.
