In its latest analysis of the real estate market in Croatia, Colliers expresses the expectation that investor demand will remain strong this year for core real estate: high-occupancy real estate, prominent tenants and long-term leases.
However, with the lack of a good product on the market, it is to be expected that investors will also turn to value-add real estate. While the demand in the housing market will be affected by the economic situation in the country, primarily the level of employment and wages.
The volume of investment transactions in the commercial real estate market in 2020 amounted to almost 550 million euros, which is 83 percent of the value in 2019. In the second half of the year, the investment market began to recover and most of the deals were realized in the third quarter.
The sector in which business activities increased is the retail sector related to food chains, logistics and warehousing. Due to the strengthening of online shopping, these segments have become the most sought-after type of product, both for investors and tenants, and the demand trend says that it will not subside so soon. If we take into account the expected further growth of the food, pharmaceutical and related industries, as well as distribution and logistics, this segment of commercial real estate will undoubtedly remain in the focus of the entire market.
Demand from local companies for warehousing and logistics squares is high. Currently, Pevex is looking for 200,000 sqm of space to build 70,000 sqm of LDC. Rimac Automobili is looking for storage 15,000 – 30,000 sqm until their campus is completed in 2025. Primary monthly rents for logistics premises in Zagreb are around EUR 5.5 per sqm. Average rents for older industrial premises range from EUR 2.0 to 4.0 per sqm.
