Zagreb City Report, Q3 2012
Report Authors: Jones Lang LaSalle
Report Summary:
ECONOMY/INVESTMENT
Croatian Economy: After a deep recession in 2009, Croatia is still struggling to restart growth in its economy. The Croatian Statistical Bureau is yet to release its preliminary GDP data for the third quarter of 2012 but, according to the IMF’s latest report, GDP is set to contract further by 1.3% in 2012, only modestly picking up by 0.75% in 2013, on the back of expected public investments and modest improvement in external demand.
OFFICE MARKET
Supply: During Q3 2012, we saw the completion of one of the two towers at Sky Office. Other than that, there were no completions during the quarter as construction of buildings expected to be completed was delayed.
RETAIL MARKET
Supply: In 2013, we expect the opening of one smaller retail scheme – a neighbourhood shopping centre known as Point Shopping center. It was announced in Q1 this year that construction on the development had started and Shopping Centre Point broke ground after years of speculation. It is situated in the highly populated district of Vrbani, in the western part of the city and has a gross lettable area of 13,000 m2, providing a mix of retail, restaurants and leisure space.
INDUSTRIAL MARKET
Supply: Phase 1 of Immorent’s Immopark Zagreb was completed during Q3 2012. This comprises of 13,000 m2 of high quality industrial and logistics space. We understand that there is an additional 53,000 m2 planned for construction, although, we don’t envisage this beginning until some lettings have taken place in phase 1. This increased the total stock in Zagreb to approximately 807,000 m2. While there remains a limited amount of high quality industrial and logistics stock, we do not anticipate any further speculative schemes to break ground in 2012.
About the Author:
Today's changing real estate market dynamics and the volatile world in which our industry operates require knowledge and intelligence to create competitive advantage like never before. Jones Lang LaSalle's industry-leading research group delivers market analysis and insights that drive value in real estate decisions and support successful strategies for clients.
