The mortgage market in Croatia is showing stable activity thanks to government programs, favorable conditions offered by banks, and steady demand from both citizens and foreigners.
Since 2017, the SSK (Subvencioniranje stambenih kredita) mortgage subsidy has been in effect, whereby the state compensates up to 50% of the monthly annuity for the first five years on loans of up to €100,000 issued to first-time residents. Pilot assessments show that these measures have led to an increase in housing prices, especially in large cities.
Terms and conditions of mortgage programs at banks
HPB (Hrvatska poštanska banka):
Fixed rate from 2.89%, APR (effective) — 3.00%, term up to 30 years. No property appraisal costs.
OTP banka:
Rate 4.69%, APR 4.93%, term up to 20 years, amount up to €200,000.
Agram Banka:
For new customers, the APR is 5.49% for a 20-year loan (example — €50,000).
Podravska banka:
Fixed rate of 5.90%, APR — 6.15%, no issuance fee.
Conditions for foreigners
Citizens of the EU, Switzerland, Iceland, Norway, and Liechtenstein can obtain a mortgage on the same terms as Croatians. For non-residents, LTV is 50–70%, with state control over the project; a residence permit or long-term stay may be required.
History of rates: from 2017 to 2025
2017–2019: rates were fixed below 3%, especially in HPB, thanks to subsidies and other benefits.
2020–2022: rates rose gradually in line with Eurobonds and monetary easing, reaching 4–5%.
2023–2025: current rates are fixed at 2.9–5.9%, ECA — 3–6%, reflecting tight credit conditions.
The Croatian mortgage market combines state support (SSK), a wide range of offers from banks, and accessibility for foreign buyers, especially from the EU. As a result, potential borrowers can expect rates ranging from 2.9% to 6%, fixed for the entire term of the loan, which is 20 to 30 years.
Source: http://relocation.com.ua/mortgages-in-croatia-overview-of-conditions-and-trends/
A sharp drop in the Euribor interbank rate by 0.25 percentage points in June 2024 and subsequent easing reduced the cost of mortgage lending. This brought buyers back to the market, especially large families and investors.
After the winter slump, an unexpected surge in transactions was observed in January: the number of available properties fell by more than a third, and some market segments experienced shortages. This signaled a recovery in demand.
New changes in legislation have eased refinancing conditions, with a number of fees abolished and commission thresholds reduced. This has encouraged homeowners who are willing to change their loan terms.
Renting a home to avoid extreme risks is becoming a lifestyle choice—renting is no longer just a temporary measure, but a full-fledged alternative to buying. Cafes, coworking spaces, and city services have moved renting into a new category.
Latvians continue to invest in housing abroad, especially in Southern Europe, and foreign investors are attracted by the growing rental market – but government regulation has already restricted short-term rentals in some countries.
There is active construction of rental housing (ALTUM projects) in the regions. However, housing shortages in cities such as Ventspils, Cesis, and Jurmala remain a problem.
According to estimates, average housing price growth rates in Latvia are expected to be in the range of 3-7% by the end of the year. For example, a 60 m² apartment in Riga for €150,000 could rise in price to €154,500-160,500.
Breakdown by property type:
Property type Growth forecast
Studio (30 m², €75,000) to €77,250-80,250
Apartment (75 m², €200,000) to €206,000-214,000
Penthouse (100 m², €500,000) up to €515,000-535,000
Where the highest price growth is expected
Serbian Finance Minister Sinisa Mali has stated that Serbia is interested in obtaining a concession to manage two international passenger airports in Montenegro — in Podgorica and Tivat.
According to him, despite repeated appeals to the Montenegrin authorities, Serbia has not been included in the process of considering concession proposals.
Mali stressed that Serbia is ready to invest in the development of these airports in excess of the current offers and has the necessary experience and resources to modernize aviation infrastructure, citing the successful development of Belgrade’s Nikola Tesla Airport.
The Montenegrin government is currently considering proposals from three companies interested in the airport concession, including a consortium from France and Turkey, as well as companies from Luxembourg and South Korea. The decision on the transfer of the airports to concession will be made after analyzing the proposals received.
However, there is active debate within Montenegro about the advisability of transferring the airports to concession. Some experts and trade union representatives have expressed concerns that such a move could lead to a loss of control over strategically important assets and negatively affect the country’s economy, especially given the significant role of tourism in Montenegro’s GDP.
Thus, despite the interest of Serbia and other foreign investors, the future of Montenegro’s airports remains uncertain, and the final decision will depend on the balance between economic interests and national development strategy.
Source: https://t.me/relocationrs/1041
In recent years, the real estate market in Serbia has shown a unique trend: the vast majority of transactions are made in cash. According to data from the
Republic Geodetic Administration (RGZ), in the fourth quarter of 2024, 89% of all real estate transactions were paid in cash, including 76% of apartment purchases. In Belgrade, this figure was 70.4%, and in Novi Sad, 71.8%.
Experts identify several factors contributing to the high level of cash payments in the real estate market:
Limited access to mortgage lending: High interest rates and strict bank requirements make mortgages less accessible to many citizens.
Savings and investments: Citizens with savings prefer to invest in real estate, considering it a reliable way to preserve capital.
Financial support from relatives: Buyers often receive funds from family members or from the sale of inherited property.
Some analysts are concerned that the high level of cash payments may indicate attempts to legalize income of dubious origin. However, according to experts such as Alexander Radivojevic, most real estate transactions in Serbia are legal, and it is incorrect to link them to money laundering without sufficient grounds.
Impact on the real estate market
The prevalence of cash payments has a significant impact on the real estate market:
Rising housing prices: High demand from cash buyers contributes to rising real estate prices.
Reduced housing affordability: For citizens who do not have significant savings, purchasing a home becomes less affordable.
Declining role of mortgage lending: Banks are facing a decline in demand for mortgage loans, which may affect their lending policies.
To ensure transparency and stability in the real estate market in Serbia, the following is recommended:
Improving access to mortgage lending: Developing programs with more favorable terms for borrowers.
Strengthening control over financial flows: Improving the effectiveness of monitoring large cash transactions.
Improving financial literacy among the population: Informing citizens about the advantages and risks of different methods of financing home purchases.
Source: https://t.me/relocationrs/1032
In the period from January to May 2025, inflation in the Netherlands showed moderate growth, remaining above the eurozone average. According to data from Statistics Netherlands (CBS), consumer prices rose by 3.3% in January compared to the same month last year, down from 4.1% in December 2024.
According to the Indeflatie website, the average inflation rate in the Netherlands for 2025 is 3.7%, which is higher than the 3.35% recorded in 2024.
The main factors contributing to inflation are rising prices for housing, water, and energy, as well as an increase in the cost of services due to rising wages.
However, despite moderate inflation, there are external economic risks that could affect the country’s economic situation.
In particular, a possible escalation of trade relations between the US and the European Union could lead to an increase in inflation in the Netherlands by 0.5 percentage points in 2025 and 2026.
Thus, in the first half of 2025, inflation in the Netherlands will remain moderate, but external economic factors could have a significant impact on further price dynamics.
Source: http://relocation.com.ua/inflation-in-the-netherlands/
At the beginning of 2025, the German labor market is showing resilience despite economic challenges, including slowing GDP growth and structural changes in industry. However, problems such as a shortage of skilled workers, demographic changes, and difficulties with integrating migrants remain.
Key indicators at the beginning of 2025
Total employment: According to the Federal Statistical Office of Germany, the number of people in employment in March 2025 was around 45.8 million, 0.1% less than in March 2024.
Unemployment rate: In March 2025, the unemployment rate was 3.7%, up 0.2 percentage points compared to the same month of the previous year.
Average working week: Despite high employment, the average number of hours worked per employee fell to a record low (excluding the pandemic year of 2020), raising concerns about labor productivity.
Professions in demand
In 2025, there will continue to be high demand in Germany for specialists in the following fields:
Medicine: doctors, nurses, pharmacists.
Information technology: software developers, cybersecurity specialists, data analysts.
Construction: engineers, architects, skilled workers.
Education: teachers, especially in primary schools and technical subjects.
Care sector: social workers, caregivers, especially in the context of an aging population.
The shortage of personnel in these sectors is due to both demographic changes and an insufficient influx of qualified specialists.
Migration plays a key role in maintaining Germany’s labor force:
Number of foreign workers: As of 2024, the number of foreign workers in Germany stood at 6.3 million, almost twice as many as ten years ago.
Main migrant groups:
Ukraine: Since the start of the conflict in 2022, Germany has taken in a significant number of Ukrainian refugees, many of whom are integrating into the labor market.
Syria, Turkey, Afghanistan: These migrant groups are actively participating in the economy, especially in sectors with labor shortages.
Integration challenges: Despite integration efforts, migrants face challenges including recognition of qualifications, language barriers, and limited access to educational programs.
Average wage
Average wage: In 2025, the average gross wage in Germany is around €4,200 per month.
Minimum wage: From 2025, the minimum hourly rate has been increased to €12.82.
Sectoral differences:
IT and technology: high wages reflecting a shortage of skilled workers.
Medicine: salaries vary depending on specialization and region.
Construction and care: salaries remain competitive, especially given the shortage of labor.
Forecasts and challenges
Germany faces a number of structural challenges in the labor market:
An aging population: According to forecasts, around 4.8 million baby boomers will retire by 2035, exacerbating the labor shortage.
Reduction in working hours: The average number of hours worked per employee is declining, which could have a negative impact on overall productivity.
Integration of migrants: Additional measures are needed to effectively integrate migrants into the labor market, including recognition of qualifications and language support.
In response to these challenges, the German government is implementing programs to attract skilled workers from abroad, improve working conditions, and promote employment among women and older workers.
Source: http://relocation.com.ua/analysis-of-the-german-labor-market-at-the-beginning-of-2025-by-relocation/
