Business Monitor International


Croatia Real Estate Report

Published 13 August 2014

  • 63 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Croatia Real Estate Report

BMI View:   The dire macroeconomic situation, rising public debt levels , falling consumption levels and low investor   confidence are all factors hinting towards a bleak 2015 for the commercial real estate market. Continuously falling demand, despite few new developments in the pipeline, is expected to lead to stagnating rent s in all commercial sub-sectors in two of our three monitored cities over the next 24 months . Net yields will decline across the sub-sectors.in two of our three cities, with only Zadar expected to post positive movement.

Rising public debt, a problematic situation in the financial sector and negative economic growth are keeping a tight hold of Croatia, more than a year into its EU membership. Greater access to EU funds has so far not been translated into growth. In contrast, expectations that the country will require an IMF/EU bailout in 2015 are becoming more realistic. For 2014, our Country Risk team is expecting negative growth of 0.7%, while 2015 will see little economic recovery with current expectations forecasting 0.6% growth. The Croatian business environment remains towards the bottom of the EU, only slightly superior to basement-dwelling Greece.

With the dire macroeconomic situation continuing, consumer confidence and private spending remain in the negative, with foreign investors becoming increasingly sceptical. As demand for commercial real estate space stagnates and falls, the fact that few developments are in the pipeline must at least be considered a stabilising factor for rents and yields. Nonetheless, we see both slightly decreasing over the course of the next two years in all sectors. The turning of office space into retail properties in some Croatian cities can only re-balance the supply-demand environment for so long, especially considering that demand for retail space is wavering, despite strong growth in tourism.

Overall, much will depend on governmental reform, the translation of EU funds into actual...

Table of Contents

BMI Industry View
7
SWOT
8
Political
9
Economic
10
Business Environment
11
Industry Forecast
12
Office
12
Table: Office Rents - (USD/sq m/month)
13
Table: Office Forecast Net Yield, 2011-2018 (%)
13
Retail
13
Table: Forecast Rents - (USD/sq m/month)
14
Table: Retail Forecast Net Yield, 2011-2018 (%)
14
Industrial
14
Table: Forecast Rents - (USD/sq m/month)
15
Table: Industrial Forecast Net Yield, 2011-2018 (%)
15
Construction and Infrastructure Forecast Scenario
16
Table: Croatia Construction And Infrastructure Industry Data, 2010-2016
16
Table: Croatia Construction And Infrastructure Industry Data, 2015-2021
17
Macroeconomic Forecast
21
Table: Croatia - Economic Activity
26
Industry Risk Reward Ratings
27
Central And Eastern Europe - Risk/Reward Ratings
27
Table: Central And Eastern Europe Real Estate Risk/Reward Ratings
27
Croatia - Risk/Reward Ratings
28
Rewards
28
Risks
28
Market Overview
29
Office
31
Table: Historic Rents - 2012-2014 (USD/sq m/month)
32
Table: Net Yield, 2012-2014 (%)
32
Table: Terms Of Rental Contract/Leases - H213
33
Retail
34
Table: Historic Rents - 2012-2014 (USD/sq m/month)
35
Table: Net Yield, 2012-2014 (%)
35
Table: Terms of Rental Contract/Leases - H213
36
Industrial
36
Table: Historic Rents - 2012-2014 (USD/sq m/month)
37
Table: Net Yield, 2011-2012 (%)
37
Table: Terms Of Rental Contract/Leases - H213
38
Competitive Landscape
39
Company Profile
42
GTC Real Estate
42
Landmark Property Management
45
Orco Property Group
47
TriGranit Development Company
49
Demographic Forecast
51
Demographic Outlook
51
Table: Croatia's Population By Age Group, 1990-2020 ('000)
52
Table: Croatia's Population By Age Group, 1990-2020 (% of total)
53
Table: Croatia's Key Population Ratios, 1990-2020
54
Table: Croatia's Rural And Urban Population, 1990-2020
54
Methodology
55
Industry Forecast Methodology
55
Sources
56
Risk/Reward Ratings Methodology
56
Table: Real Estate Risk/Reward Ratings Indicators
58
Table: Weighting Of Indicators
59

The Croatia Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's Croatia Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Croatia.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for Croatia to test other views - a key input for successful budgeting and strategic business planning in the Croatian real estate market.
  • Target business opportunities and risks in Croatia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors.

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Industry Forecast Scenario

Historical data series (2010-2012) and forecasts to end-2018 for the domestic real estate industry and for the local and global finance industry. Indicators include:

Real Estate: Office, retail and industrial real estate yields for all major cities (%); short-term forecasts on minimum and maximum real estate rental prices by sub-sector (US$ per square metre, and local currency per square metre)

Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%)

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$)

Business Environment Rankings

BMI's Real Estate Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (real estate vendors, construction companies and financial investors) in the regional real estate market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.

The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc