In order to give the real estate market a boost, banks that financed real estate growth joined forces with construction companies and two furniture manufacturers. According to unofficial estimates, seven of the largest banks on the Croatian market financed between 70-80 % of the unsold apartments, representing two billion euro of capital.

Raiffeisen bank was the first to come out with a special offer and favorable interest rates. Raiffeisen bank has a portfolio of 1,300 unsold apartments or 10% of the unsold apartment market (in Zagreb a somewhat smaller share). With their partner companies, RBA offered 555 apartments in 17 cities, with the offer lasting three months. Both the bank and the contractor are giving up an equal share of the profit: RBA reduced the interest rate on housing loans by 10-25%, while the contractor lowered the apartment prices by 10- 20%. The offered prices will be 950 – 3150 euro per square meter, which is the most that both sides can offer. There are between 25-37 contractors, Raiffeisen bank partners, involved in this special sale. Two furniture manufacturers became a part of the special sale (Trokut from Novska, Prima Commerce from Bjelovar), with one additional company has sent a letter of intention. Mr. Mario Žižek, Member of the Board of Raiffeisen Bank, explained that “the number of partners can increase as we are negotiating with additional companies, but the condition is to reduce their prices by at least 10%”. Of the 1,329 apartments that RBA has presently financed, 555 will be on the market as a part of this first offer. Of these apartments, 143 are in Zagreb, with 96 apartments in Lanište, at an average price lower than 1,500 euro per square meter. Apartments with prices higher than 3000 euro per square meter are in prime locations in Zagreb and in Cavtat. The cheapest apartments are in Županja (average price per sq.m. is 950 euro), while in Slavonski Brod, Samobor and Slatina the average price is approximately 1,000 euro.
(AmCham)