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Articles - Nekretnine

17.7 percent more building permits were issued in July than last year

796 building permits were issued in Croatia in July, which is 17.7 percent more than in July last year, the Central Bureau of Statistics announced.

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How will technology affect the development of the real estate market? Read a great interview with Marko Pavlović, CEO of Flow and Form agency

1. Tell us a bit more about your startup, what exactly do you do? Flow and Form is a digital agency specializing in the development of applications, which help property owners and operators to improve the way they manage and experience the use of their buildings and other facilities. We started operations in 2017, and during that period we helped several technology companies around the world to market their proptech products. With our clients, we have found a lot of success in developing desktop booking applications and analyzing workspace utilization in organizations like Amazon and Netflix. The company currently has 20 employees with its main office in Zagreb, and in the future we plan to publicly present our own products for commercial and residential buildings. 2. Looking globally, PropTech experienced a real boom during the pandemic. Some new apps have appeared. Do you believe this trend will continue after the pandemic? Proptech is definitely on the rise looking at the growth of private equity in proptech companies and the number of start-ups looking to enter the market. The pandemic has prompted many space owners and operators to think about the new needs of their tenants, especially in the office space. But these needs existed even before the pandemic, and this pandemic only accelerated the process of what I think would happen anyway. I think that this trend will certainly continue after the pandemic because the way we work and live is changing, so the physical space in which we live will take on new meaning and new functionalities. 3. Your review of the real estate sector in the Republic of Croatia? In 2020, one of the largest coworking offices in this part of Europe opened in Zagreb. How can PropTech tools help improve coworking business development services? The residential real estate market in the Republic of Croatia remains very dynamic because even in the pandemic we saw an increase in prices, a drop in interest rates on housing loans, and several interesting projects such as VMD Park Kneževa with over 120 new apartments. While the quality of housing is taking on a new meaning, the need for quality housing is growing in the west, and I think that the same trend will continue in the Republic of Croatia with a slight delay. Although the pandemic affected the business real estate market the most, the price did not vary much depending on the location, and the plans of larger organizations in Zagreb have changed, so we could see more new business and coworking space projects. I am extremely glad that we now have a large and beautiful coworking space in Zagreb that offers a new model of flexibility to individuals, workers and companies. Coworking spaces attach a lot of importance to the user experience within the space, and we are already convinced that technology can drastically improve the user experience. Therefore, I believe there are two main ways that technology can help: 1. Improving usability and space occupancy. 2. Improving the user experience of the space. The solutions we saw as a successful move of coworking space in the world were the implementation of an application for booking workspace such as tables, conferences and other rooms where users can book and pay for their space in real time through the application. A useful addition to this is the installation of sensors to monitor the usability of the space in real time because this way we can automate the reservation and cancellation of table reservations, and also provide information to owners on how the space is used, which days and which places are most represented. Such applications also offer the ability to find people of interest in the space, a channel for communication with customers, ordering and charging for additional services and many other features that improve the user experience and help owners make better decisions. 4. Do you believe that new concepts of work and new concepts of business will lead to changes in renting business premises? Definitely! Business spaces take on different meanings and people create different expectations than just space. I think that the view of business space is changing in the direction of providing quality service in addition to space, where before only the location and the space itself were important. Expectations from business space owners will be significantly higher, as an example, several business space owners in the U.S. have already provided a private daycare for the children of space employees to improve their service. In other examples, the concept of the promotional space has completely changed, so that CloudKitchen allows small restaurants to rent a kitchen intended for delivery cheaply and quickly. This changes the dynamics of rental periods and contracts that were previously fixed at a minimum of 5 or 10 years, while we already see a lot of flexibility requirements where contracts are defined for shorter periods such as a couple of months or a year. I believe that for this reason, the monthly payment or “subscription” billing model will gain popularity in the future. 5. Future trends? How will technology affect the development of the real estate market? What are the positive aspects of these changes? In the future, we will change some of the oldest tools and concepts related to real estate, this will include changing everything from using physical keys to the way we buy and pay for the use of space. What exactly will it look like in the end? I don’t know, but what I do know is that physical objects (in this case real estate) will adapt to the fact that we all now have technology in our pockets, and will allow us complete control and a different experience of the space we live and work in. Houses, buildings, business and housing will be smarter, and the race to build such spaces has just begun, all over the world. I believe the real estate industry has made the world’s largest contribution to the climate crisis. Real estate is the largest asset class in the world and one of the largest sectors of the global economy. Therefore, it should come as no surprise to learn that the sector consumes about 40% of the world’s energy, emits 30% of all greenhouse gases and consumes 40% of all raw materials. Given this reality, as the global community harmonizes culturally, economically, and politically around tackling climate change, real estate is likely to take center stage. I believe that the people who manage global real estate assets - valued at around $ 50 trillion - are therefore one of the most important decision-making groups in the world that will be part of this urgent conversation. I am pleased that investment in real estate decarbonisation has quadrupled this year, that major decarbonisation decisions have been made in the US, Europe and other countries on a political and economic level, and I look forward to seeing results in the future. I believe that we all have a responsibility, and especially those of us who are in the technology sector - where we are laying the foundations for the future of real estate, we need to think about what kind of world we will leave behind. Therefore, I believe that new trends and a new “mindset” in the real estate industry will make a positive, “green” impact on the world around us.

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The price of new residential construction is the highest in ten years

The average price per square meter of new construction in the first half of 2021 reached the level of as much as 13,385 kuna for the level of the whole of Croatia, which has not been recorded in the last ten years.

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We spoke with Siniša from the Asura Group, the Facility Management Company. Read what he told us!

1. Tell us more about your company, how long have you been operating in the Republic of Croatia? Our company was originally established in 2005 and since then it has grown organically in Croatia and in the Adria region. Today, in addition to Croatia, we are present in Slovenia, Montenegro and Macedonia, where we help domestic and large international companies in managing their Facility Management process. Our focus is on Integrated Facility management where we combine all FM services for our clients according to the concept - ONE CONTRACT ONE BILL. 2. What is your opinion about Facility Management in Croatia? And what is the current situation in the region? Facility Management is a relatively new discipline and has been present in Croatia for about twenty years. The average room is unaware of what Facility management is. They understand the role of the cleaner but Facility management is a much, much more complex process than just cleaning. It’s part of that invisible economy that you only notice when it’s missing. If the cleaning lady doesn't clean the office, after a few days someone will notice. But if the cleaning lady is conscientious no one will notice that anything has happened. It is the same with the technical service. Changes occur when the director in the office dies. In my experience, these jobs within companies fall into portfolios: general jobs, human resources, or procurement. 3. How much has the COVID-19 crisis affected the Facility Management market? After conducting an analysis of publicly available data, most FM companies generally had an increase in revenue due to the demand for more frequent and detailed maintenance of facilities due to the COVID-19 crisis. While some smaller offices cut costs from working from home some other spaces like factories or logistics centers began to invest more in the cleanliness of their facilities. We grew strongly during the crisis by adding new facilities to our management portfolio. The property is binding. Although the value of a property is written off (depreciated) for twenty years, the value of that property remains the same (or increases depending on the market) but only if it is well maintained. It is our job and I invite everyone who has a long-term vision for their property to contact us with a request to maintain their facilities. 4. How do you find future projects and business partners? By phone. Of course, we also use modern technologies such as Google advertising and social networks in communication with our potential clients, but the sale of Facility Management services happens "face to face", live. Luckily our people are great at it. Our colleague Blaženka Dudaš, regional cleaning manager, with her communicativeness, authenticity and knowledge is often a decisive element in the final judgment of the client to choose us to take care of her property. The phone is only the first step in the process and serves to schedule an inspection of the property, assess its condition and the client's needs (maybe they need a housewife in the office, water and fruit delivery or some other soft Facility management service). This is followed by an offer, signing a contract and carrying out the work. 5. Do you expect any changes in business in 2022? Of course. With greater vaccination, we expect people to return to the offices. In the US, a market much more developed than ours, the number of jobs that are fully remote has tripled and is now at seven percent. The office will not disappear, it will not fail. Properties can change purpose but as I mentioned once you build them they come with maintenance obligations. I expect that awareness of these obligations will grow among those in charge of long-term asset management and that Facility Management will continue to grow strongly. We are satisfied with the imminent start of the East Gate Mall in Skopje, which we are maintaining, and I expect a strong expansion in the region and the opening of the Serbian market. Do you have an additional question for Siniša. Contact him by email - [email protected]   You have an interesting topic that you would like to talk to us about. Contact us at [email protected]

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Strong growth in residential property prices in the EU; Croatia below the European average

EU real estate prices rose the strongest in almost 14 years in the first quarter, with Croatia recording its weakest growth in just over three years, slipping below the European average, a Eurostat report showed on Thursday.

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Interview with Mr. Markica Stanušić, CEO of Ancona Group

Can you tell us a bit more about the Ancona Group, how long have you been in business and how many employees do you currently have? Today, Ancona Grupa is a renowned company from Đakovo with a leading position in the Republic of Croatia in the sector of production of wooden and upholstered furniture and interior carpentry. Since its founding, 20 years ago until today, we have continuously invested in production technology and employee education in order to stand alongside global competitors. Given that more than 60% of contracted projects come from abroad, we definitely achieve that. We currently have 156 employees, and that number is constantly growing thanks to agreed projects. I am extremely proud of our successes and the fact that we are changing the image of "dormant Slavonia where nothing is happening." You wouldn't believe it, but in our team we also have people from Zagreb who come to work in Đakovo. The Alpha Centauri campus from Infobip is one in a series of your projects. Can you tell us a bit more about that project? We are very happy to be a part of the creation of a project like this. We are working diligently on the Infobip campus and it is definitely one of the more demanding projects. We equip their business premises, public spaces and accommodation units. Their employees, I am sure, will enjoy everything we have been preparing for them for some time. Such projects let me know that we have developed and that we continue to develop continuously, in the right direction. Many hours of work are invested every day in order to meet the highest criteria, and when we see the final result together, it is a special pleasure and a sign that everything invested has paid off. In which markets are you currently represented? Although we are a company based in Đakovo, most of the project equipment we do is for the foreign market. We cover various sectors - we equip office, hotel and residential premises. In Europe, we mostly do business in the German-speaking area and in the Benelux countries. And outside of Europe, we work in the U.S. and the Middle East. As we grow, so do our plans, and with the experience we have accumulated over the years, we have noticed the possibility of entering some new, still intact markets, which we believe have great potential. We are interested in, for example, Georgia, Tunisia and Nigeria. It is exciting to enter new markets as well as explore them, create an image of opportunities, explore business opportunities, as well as culture. In your opinion, will flexible mode become standard mode in the future? It largely depends on the business and culture of the company, but it is very likely that the future of work will consist of a combination, work from the office and work from home. Both options have their advantages and disadvantages. But one thing is for sure - nothing can replace human contact and we will return to it to a greater or lesser extent. It is important to create an environment that encourages productivity, in which employees feel relaxed and comfortable, regardless of the location from which they do work. Change is constant, it should be strived for, and why not adapt to our capabilities and try to get the best for business and employees. There is more and more talk about new ways of working, but also about changing the structure of office space as a place to work, I'm talking about the optimization of office space and new concepts of office space - diffuse offices. Will the new concepts of office space lead to changes in the production and design of office furniture? It will, and it's already happening. Crisis times are difficult in many ways, but there is one great thing, and that is that they encourage us to be creative, new solutions, to innovate. I must mention our table Ala (although it is intended for catering), which is very adaptable to a situation where a certain distance is required. It is designed so that the plates move, so the desired distance can be made between the people sitting. We also produced an office desk with a partition that can be placed in the desired location. In addition, there is a partition for the Taraba space as well as a Sfumato shelf which can also serve as a partition in the space. More and more such ideas will be implemented in the post-pandemic period in order to satisfactorily arrange the space for a larger number of people living inside. The interior is taken to a new level, and the functionality is even greater than originally imagined.

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Medika bought land for the construction of a new logistics center in Zagreb

Medika d.d. On Monday, June 28, concluded an Agreement on the sale of real estate in Zagreb, with an area of 114,030 m2 for the purpose of building a new warehouse and distribution center with all the necessary supporting facilities and offices, in order to increase logistics capacity.

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Despite the pandemic, real estate prices in Croatia continue to rise

In Croatia, housing prices continue to rise. And with earthquakes and uncertain economic trends in the pandemic. But the pandemic still led to a slight drop in property sales.

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