Earthquake and epidemic disrupt the Zagreb office rental market

Zagreb, April 26, 2020 – Doubts caused by the coronavirus and the March 22 earthquake affected the office rental market in Zagreb and the current situation is very poor, the head of the Real Estate Agents Association of the Croatian Chamber of Commerce Dubravko Ranilovic, was informed here earlier this week.

Ranilovich said that many downtown buildings that were leased as offices are now damaged and landlords and tenants are now searching for alternatives to repair the buildings, which were damaged in the earthquake, which can take time. On the other hand, owners of office buildings do not tend to rent out their property for a period shorter than two years.

“The demand for rental of offices, especially those of first class (Class A), is high,” said Ranilovich.

Office buildings are generally classified into one of three categories: Class A, Class B, or Class C. Standards for Class A offices are the highest. These buildings represent the latest and highest quality buildings on the market. They are generally buildings with the best attractiveness, the best building, and infrastructure for high-quality buildings. Grade A buildings are also well located.

Class A office rents range from 13 euros to 16 euros per square meter, while offices in less attractive locations range from 10 euros to 11 euros per square meter.

Ranilovich also said he doubts that rents will decrease, at least not soon, but the situation will depend on the duration of the epidemic and that in the long run, all options are possible.

The demand for renting warehouses with an area between 2000 and 5000 square meters is high.

More business news can be found in the dedicated section.

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