Croatian Real Estate Newsletter Vol 85 (PDF)

Croatian Real Estate NewsletterVolume 85, September 2013TOPICS OF THIS ISSUE:InterviewFilippo ReanDirector,MIPIM & MIPIM ASIAReportBusiness and ProfessionalSymposium “Zagreb Skyscrapers”held on September 17, 2013in the Esplanade Zagreb HotelCREN Patrons:

TABLE OF CONTENTS1. TOPIC OF THIS ISSUEInterview:Filippo Rean,Director, MIPIM & MIPIM ASIA 32. ANNOUNCEMENTProject: “Whole Life Management of Sustainable Construction” 93. TOPIC OF THIS ISSUEReport from a Business and Professional Symposium “Zagreb Skyscrapers” 114. STATISTICS4.1. Average Asking Prices of Real Estate Offered for August 2013 164.2. Statistical Reports of the Central Bureau of Statisticsfrom the Area of Construction 164.2.1 Construction work indices, June 2013. 164.2.2 Building permits issued, July 2013. 17Croatian Real Estate Newsletter, September 2013 2

1. TOPIC OF THIS ISSUEFilippo ReanDirector,MIPIM & MIPIM ASIAFirst of all Mr. Rean, thank you for fi ndingtime for this interview. Could you briefl yintroduce yourself to our readers?I come from the investment industryand before joining the MIPIM team,I was the European Director, ProductDevelopment at GE Capital Real Estate.It was a great experience for me as itsactivities range from offices to hotelsto logistics to retail, equity and debt,and cover all major European markets.Previous positions include a start inthe marketing department of Procter& Gamble in Italy and several years atthe Milan and Rome offices of Bain& Company, where I worked on highlydiversified projects in different sectorswith a focus on real estate. I bring tomy current position my expertise inreal estate, a background as a marketerin consumer goods combined with myexperience as a MIPIM client whichhelps me in my efforts to be in tunewith what clients say or expect.What is MIPIM? Why is it consideredone of the largest real estate events tobe hosted? What do participants fi nd atMIPIM?MIPIM is the world’s leading propertymarket. It brings together all the keyactors of the real estate business.Investors, developers, end-users,architects, hotel groups, publicauthorities and property associationsgather in Cannes for four intensivedays of networking, matchmaking anddevelopment of international businessrelations.MIPIM is not only an indicator of globalmarket trends, but also an internationalmarketplace creating dialogue betweena variety of real estate professionals,generating new ideas and sealingcontracts and partnerships. MIPIMplays an essential part in developingcross-border deals and facilitatinginvestment projects. At MIPIM, youcan find a whole range of projects fromresidential, offices, shopping centresand hotels. It provides attendees withan overview of the global real estatemarket as well as accurate informationPhoto: MIPIM 2013 – Outside ViewCroatian Real Estate Newsletter, September 2013 3

tourism, logistics, social housing andmedical real estate.Apart from being the MIPIM Director, youare also the MIPIM Asia Director. MIPIMAsia 2013 is being held in November inHong Kong. Tell us something about theprogramme and your expectations for theevent?Photo: MIPIM 2013 – Outside View – Palaison specific branches of the industry thatyou won’t find in any other show.International property industry is a solidlong-term investment asset. You willfind at MIPIM the highest concentrationof top level international investmentcompanies - including pension andsovereign wealth funds - representedby their senior executives. They cometo Cannes seeking to invest directly inreal estate projects, or searching forbusiness opportunities and partnershipswith other investors.In 2014, MIPIM celebrates its 25 years.Could you summarize/explain MIPIM’simportance for the entire market andthe most important accomplishmentsthroughout all these years?Europe, from the Middle East, fromAsia, from Latin America became ofgrowing importance.MIPIM was also a forerunner in theindustry when it brought together citiesand real estate professionals 25 yearsago. It anticipated the growing roleplayed by local authorities supportingthe property sector by advocatingambitious, long-term projects andpromoting their territories to investors.MIPIM continues to anticipate trendswith the launch of pavilions dedicatedto innovation in buildings or on specificbranches of the industry such asFor 2013, we will offer a new format- The MIPIM Asia Property LeadersSummit - that will gather top-levelreal estate professionals from allsectors. It will help participants to gainindustry insight and discover the mostoutstanding projects through a worldclassprogramme dedicated to propertyinvestment and retail real estate.Thanks to the conferences, participantscould revisit property fundamentals andrethink retail property perspectives.Dedicated networking sessions will helpparticipants to meet target clients andpartners. Lastly, the MIPIM Asia Awardswill honour excellence and innovation inAsian real estate development.One part of MIPIM 2013 is RE-Invest.What would you say was its importancefor the Real Estate Asset Managementindustry?Funding is an important topic at MIPIMin the conference programme but alsoin delegates’ conversations. 2013 wasthe third year we organised RE Invest,When MIPIM was created, it was a veryinnovative idea to launch a trade fairbased on the globalisation of real estateinvestment. At that time, the propertyindustry was still very local with fewinternational investors. MIPIM certainlyhelped to accelerate the trend toglobalisation of real estate investment,as it gathered together all key actorsin the industry from all over the world.It contributed to open the market inwelcoming each year new participantsfrom new countries, giving them theopportunity to be recognised in theinternational markets. For exampleover the years, countries from EasternPhoto: MIPIM 2013 – Keynote Address by Boris Johnson, Mayor of LondonCroatian Real Estate Newsletter, September 2013 4

the MIPIM Real Estate InstitutionalInvestors Summit, which gather pensionand sovereign wealth funds to tackle keyissues faced by real estate institutionalinvestors.A record 70 institutional investors,including private and public pensionfunds, sovereign wealth funds andinsurance companies, attended MIPIM.This large number of institutionalinvestors at MIPIM is one more proofthat real estate remains an importantasset for investors and their presenceis a good sign for the industry. Theseinstitutional investors are very importantbecause they feed investors with fundsand real estate is an activity whichrequires heavy investments. When theyattend MIPIM, they know they willaccess prime information on what’sgoing on in the international real estatemarkets.MIPIM’s Country of Honour for 2013 wasTurkey and for the next year, you haveannounced that it will be joined by Russiaand Brazil. Can you explain this choice?Our main objective in the choice ofthese countries of honour is to reflecta trend in the global real estate marketwhile meeting the needs of our clients.Turkey, Russia and Brazil are clearlyamong the biggest and fastest-growingemerging markets with significant shortand middle-term growth potential anda growing interest from internationalinvestors. Some projects in thesePhoto: MIPIM 2013 – Networking Event – Power Meetings – Invest in Logisticscountries have already been showcasedat MIPIM through private and publiccompanies. They are three verydifferent countries offering diversifiedopportunities in terms of investmentand real estate development. TheTurkish real estate sector is a boomingmarket with an ever growing needfor housing, office space and retailcomplexes. The Russian market isvery dynamic and taking advantage ofa boom in consumption, unequalledin Europe, clearly evidenced by itsgrowing middle class – which accountsfor nearly 50% of the 140 millionpopulation in the country. And Brazil,represented at MIPIM for more than10 years, will be under the spotlightsas it will host the FIFA World Cupfinals in 2014 and the Olympics in2016. In selecting them as countriesof honour this year, we want to enlargetheir visibility and showcase a largepanorama of projects, key players andopportunities in these territories.We are all aware of the economicsituation on the real estate market, butyou stated that MIPIM 2013 was ‘the mostactive MIPIM since the 2008 economicdownturn’. Could you point out somehighlights of this year’s MIPIM?Photo: MIPIM 2013 – MIPIM Innovation Forum – Keynote Panel: Can Skyscrapers Be Sustainable?Croatian Real Estate Newsletter, September 2013 5

MIPIM 2013 was clearly a veryactive edition with a lot of showcasedprojects and major investors attractedby assets in real estate. However, theglobal economic context remains verychallenging and for real estate players,attending MIPIM is more crucial thanever to make the right contacts andcontinue developing their business.estate competition that honours realestate projects featuring outstandingarchitectural achievement andinnovative techniques. For severalyears the MIPIM Awards have beenextremely appreciated and widelyechoed by the international press andprofessionals. MIPIM has become a realcommunication tool for these projects.of the real estate industry and totake new developments into account.For example in 2012, we added acategory for real estate logistics dueto its special technical requirements.Also the ‘Refurbished Office Building’category has been extended to all typesof buildings as refurbishment is now acentral issue in real estate. We receiveevery year more and more applicationsPhoto: MIPIM 2013 – Inside ViewPhoto: MIPIM 2013 – Outside ViewMIPIM focuses on businessopportunities and real estate investmentis always at the heart of the show.One of the hot topics this year wasthe changing nature of investmentstrategies and vehicles and the strongpresence of institutional investors.Another highlight of this edition wasthe large number of projects, includingsome of the most up and comingpieces of architecture and construction,showcased by major European citiessuch as London, Paris, Moscow, Berlin,Stockholm, Barcelona, Oslo or Lisbon.This year also, we launched the MIPIMInnovation Forum, a meeting placefor all players involved in buildingtomorrow’s cities to debate and shareideas. It offered a mix of exhibitionspace, conferences, case studies andnetworking sessions focusing on energyefficiency, smart cities and smartbuildings.Can you tell us more about the MIPIMAwards?The selection criteria are recognised bythe entire profession, which helps allparticipants considerably when it comesto exporting their expertise abroad.Since their creation, the categoriesevolved to make them morerepresentative of the various segmentsfor projects from all over the world andwe already received applications forMIPIM 2014.On every edition of MIPIM, you introducenew programmes for different participantsof the real estate market. Could you revealsome of the plans for MIPIM 2014?Created in 1991, the MIPIM Awardsis an internationally renowned realPhoto: MIPIM 2013 – MIPIM Awards – Prize Giving CeremonyCroatian Real Estate Newsletter, September 2013 6

What is your vision of development of thecommercial real estate world in the next15 years?Photo: MIPIM 2013 – MIPIM Awards – Prize Giving Ceremony – Filippo ReanMIPIM is a unique place where you canfind projects from all segments of thereal estate industry. Some branches ofthe industry are emerging because ofthe evolution of economy. Next year,we will reinforce the visibility of hoteland tourism real estate, a segmentalready well represented at MIPIM witha dedicated pavilion and conferences.Innovation in building will continue tobe a major topic at MIPIM 2014 withthe MIPIM Innovation Forum that waslaunched this year and is highlightinginnovative solutions to maximise thevalue of property portfolios.Croatia is in a key geographical locationwith a very well developed motorwaynetwork. This really helps creating linkswith its neighbouring countries andcan bring significant opportunities forlogistics real estate developments.Also tourism is clearly an asset forCroatia which takes advantage of a richnatural and cultural patrimony withbeautiful coastline and historical citiessuch as Dubrovnik, one of UNESCOWorld Heritage site, or Split. The entryinto the EU should open opportunitiesin tourism real estate as it will ease theentrance of European tourists who willneed all kind of tourism infrastructures.One major trend at the beginning of this21th century is the omnipresence inour lives of digital technologies whichis transforming the way we live andthe way we consider physical space.This will necessarily have an impact onthe real estate industry in the comingyears. For example, office building andwork space will evolve towards moreopen and connected spaces to adaptto more and more nomadic workers.In retail real estate, the emergence ofinternet shopping is pushing retailersand retail real estate developers torethink shopping centres and the rolethey can play in consumers’ life. It’salso boosting the development of hightech logistics platforms to be ableto meet the needs of quick doorstepdeliveries. Another trend, which isthe consequence of the digitalisationof our lives, is the more and moreblurred frontier between private andworking life meaning that real estateprojects will mix office, retail, tourismand even logistics functions in a largerscale. Also, local authorities will playan increasing role in organising urbandevelopment, setting up networks andfederating all the stakeholders involvedin building the city.We organize Annual InternationalConferences on the Real Estate Marketin Croatia for nine consecutive years andare planning our tenth edition on April 9and 10, 2014. MIPIM will be our IndustryPartner and we would like to herby thankyou for the support. Croatia recentlyentered the European Union. How doyou see Croatia’s place on the Europeanmarket? What are the opportunities inCroatia?Croatia is a country full of opportunities.Located at the cross roads of CentralEurope, the Mediterranean and theBalkans, Croatia links Eastern andWestern Europe. I have no doubt thatthe entry of Croatia will have a positiveimpact on the Croatian economy.Photo: MIPIM 2013 – MIPIM Awards – Prize Giving Ceremony – Special Jury AwardCroatian Real Estate Newsletter, September 2013 7

Finally, the real estate sector will haveto adapt to a more global world wherenew emerging countries become ofgrowing importance and are generatingnew opportunities. Tourism real estate isa good example as a new generation oftourists arriving from countries such asChina, Russia, Brazil will push operatorsto develop new touristic complexesadapted to the need of these clients.In this moving world, MIPIM willcontinue to play a strong strategic rolefor the real estate industry to help itsplayers invent the future.Photo: MIPIM 2013 – MIPIM Awards – Prize Giving Ceremony – The WinnersCroatian Real Estate Newsletter, September 2013 8

2. ANNOUNCEMENTProject:“Whole Life Managementof Sustainable Construction”Whole Life Management of Sustainable Construction - WhLMSCis an EU funded project which consists of six partners fromacross Europe. Employees of PPP Centar d.o.o., along withfour other partners in the project, carry out training in severalmodules which are prepared in co-operation with other partnersin the project and co-ordinated by project leaders (Whole LifeConsultants Ltd., spin out company from the University ofDundee, UK). The project highlights the importance of shiftingthe mind-set to embrace the management of sustainableconstruction and the need to transfer knowledge that encouragesthe development of holistic life-cycle approaches to deliversustainable solutions in a simple and clearly defined manner.During March and April 2013, the training was held byWhole Life Consultants Limited in Zagreb, with a purposeto transfer knowledge and innovations as well as experiencein several areas of sustainable building. The other partnersin the project are: PPP Centar d.o.o, from Zagreb, Croatia,Societatea Romanapentru Educatie Permanenta (SREP) fromRomania, FOR SAS di Paolo Tubino&C. (FORSAS) from Italy,Croatian Real Estate Newsletter, September 2013 9

DOCTUM from Spain, and Frederick University from Cyprus.They will be educated to pass their knowledge on trainees. Thetransfer of knowledge will enable them to use the informationand apply and use tools to their needs for management ofsustainable building and thereby enable the sustainability ofthe construction sector and industry. As participants in theproject come from a different background and knowledge, thetraining is intended for all those who participate in the projectsof sustainable construction, coming from private or publicsector and of different professions: Architects, Engineers,Consultants, Designers, End-Users, Facilities Managers,Contractors, and others.The main purpose is to provide sustainable solutions inconstruction and at the same time cover economic, socialand environmental component of sustainable development.Participants will acquire knowledge required for the analysisand assessment of sustainability.Key areas of training include: a) sustainable developmentand construction, b) a holistic sustainability assessment,c) sustainable procurement, d) innovation and standards ofsustainable construction.The first training module in the field of Sustainable Constructionand Development has been successfully delivered and MODULE2 and MODULE 3 are scheduled for October (Zagreb, October17, 2013 in the University building).Here is a brief summary of the modules:Module 2, Integrated sustainability assessment includes:Part 1: The basics of sustainability assessment, principles andprocesses, the challenges and difficulties of application andintegration of sustainable developmentPart 2: Indicators to assess the sustainability: indicatorsmeaning, features and steps in the development of indicators,processes in development of integrated indicators.Part 3: Tools for assessing sustainability: the concept andstructure of tools and the role of participants in the evaluationModule 3, Sustainable procurement includes:Part 1: Fundamentals of Sustainable Procurement: anintroduction to the procurement process, the role andpositioning of sustainability in the procurement process, theEU initiative in sustainable procurementPart 2: Sustainable procurement: achieving value for moneythrough sustainable procurement and analysis of the whole lifecost, the principles, processes and factors that affect the wholelifetime value, the new standards ISO 15686-5Part 3: Sustainable construction in practice - standards andrisks of sustainable constructionIf you would like to attend and place your preliminary interestfor the training course please apply no later than 30th ofSeptember, 2013 by e-mail: info@pppcentar.com or telephone:+385 1 5620 893. Further information may be found at theproject website www.whole-life-construction.eu and newssection at www.pppcentar.comCroatian Real Estate Newsletter, September 2013 10

3. TOPIC OF THIS ISSUEBusiness and Professional Symposium“Zagreb Skyscrapers” was held on September 17th 2013,at the Esplanade Zagreb Hotel.A Business and Professional Symposiumentitled “Zagreb Skyscrapers” washeld on September 17th 2013, at theEsplanade Zagreb Hotel.Altogether 230 participantsfrom different areas of expertise,including 26 speakers, attended theSymposium. The participants includedrepresentatives of the State and localgovernment, architects, urban planners,developers, investors, constructors, realestate advisors and brokers, lawyersand many others who participatein commercial real estate projectdevelopment. There were 4 interestingpanels and 7 round tables. Also, 12sponsors and partners supported theSymposium, which was appropriatelyheld during the World Green BuildingWeek – September 16 – 20, 2013.The main idea of “Zagreb Skyscrapers”Business and Professional Symposiumwas to bring together all who areinterested in the development ofskyscrapers in Zagreb. Zagreb has arich tradition of building high-risesand skyscrapers, but at the sametime, experience in the constructionof skyscrapers in the last twentyyears is limited to a few commercialskyscrapers. Also, a series of projectsthat plan to build one or morecommercial, mixed-use or residentialskyscrapers are in pipeline. The focusof this Symposium was a professionaldiscussion about the past and future ofconstructing high-rises and skyscrapersin Zagreb, the technical characteristicssuch as height, surface, technology,sustainability and others. The questionof financial and market viability of suchprojects was also discussed, includingtheir market potential and willingnessof Zagreb residents to work and live inskyscrapers.Silver sponsors: BBR Adria, Daikin andHolcim, Sponsors: ACO, Alukönigstahl,Fermacell, Knauf, Macalloy, Rockwool,Schöck and Verdispar Internationaland Green Associate: Croatia GreenBuilding Council, largely contributedto the Symposium success. We wouldalso like to thank all the speakers andparticipants for their personal approachand commitment in the overall successof the Symposium.In a series of lectures in the firstpart of the Symposium, the speakerssystematically and thoroughlypresented and explained importantissues regarding existing and futureskyscrapers in Zagreb.The Minister of Construction andPhysical Planning, Ms. Anka MrakTaritaš, held the opening speech ofthe Symposium. Rajka Bunjevac alsowelcomed the Symposium participantson behalf of the Croatian Chamber ofArchitects.Ivica Fanjek, Head of the City Institutefor Urban Planning, City of Zagreb,spoke about the spatial potentialfor building skyscrapers in Zagreb,especially accentuating construction ofskyscrapers according to the Zagreb’sUrban Master Plan. The esteemedarchitect Prof. Marijan Hržić, Ph.D.,Director, Arhitektonski atelier Hržićd.o.o., spoke about his engagementin designing two very well-knownskyscrapers in Zagreb – the CibonaTower and Eurotower, as well as allimportant circumstances around theCroatian Real Estate Newsletter, September 2013 11

design and construction of thoseprojects. The moderator of the firstpanel was Petra Škevin, M. Sc.,Member of the Management Board,Filipović Business Advisory Ltd.The second panel was composed of fourinteresting and thematically diverselectures. Prof. Jochen Pfau, Ph.D.,Professor on University of Rosenheim,spoke about Sustainable ConstructionTechnology for High-Rise Buildings. Wewould hereby like to thank our sponsorKnauf for their effort in bringingprofessor Pfau to the Symposium.Based on the extremely vast experiencein his profession, Branko Silađin,Architect, Odak i Silađin – Arcusd.o.o., presented his very inspiring,memorable and significant opinionsin his lecture about Spatial Locationas a Danger and Skyscraper Identityas a Potential of Zagreb’s Identity.Following were two lectures concerningtechnical topics: Igor Skelin, M. Sc.Mech. Eng., Managing Director, DaikinHrvatska d.o.o. spoke about appliedlow energy air conditioning solutionsin high-rise buildings and ŽelimirBodiroga, M. Sc. CE., President of theBoard, BBR Adria d.o.o., talked aboutthe possibility of using pre-tensionedslabs in skyscrapers. The second panelwas also moderated by Petra Škevin, M.Sc., Member of the Management Board,Filipović Business Advisory Ltd.Croatian Real Estate Newsletter, September 2013 12

Two more panels were held after lunch.The first panel was moderated by MarkoDabrović, Partner, 3LHD d.o.o., andfour more presentations were held.The first lecturer was Antoine Carnot,Project Manager, Holcim TechnologyLtd., with his presentation High,Higher, Concrete – Development ofConcrete for Skyscrapers Technology.He was followed by Branimir Medić,Partner, de Architekten Cie. and hispresentation inspirationally called BigFoot. Mario Štimac, Head of TechnicalServices, Alukönigstahl d.o.o. spokeabout envelopes of Zagreb skyscrapers.In his intriguing presentation calledHigh-Rise Houses – Trials and Errors –Small History of Verticals’ Positioning inZagreb, Otto Barić, Director, Arhitekturatholos projektiranje d.o.o. brought anumber of specific examples from hisown professional opus of skyscraperdesign in Zagreb.The fourth panel of the day beganwith a lecture called Cultural Aspectof High-Rise Buildings held by SanjaŠaban, M. Sc. Arch., Assistant Minister,Ministry of Culture. Following wasBorislav Doklestić, M. Sc. Arch., SpatialPlanner and Urban Planner with hispresentation about how and where tobuild skyscrapers in Zagreb. ZrinkaPaladino, Ph.D., M. Sc. Arch., DeputyHead, the City Institute for Protectionof Cultural Monuments and Nature,the City of Zagreb, held a presentationcalled Zagreb Skyscrapers as CulturalHeritage – From the First to the RecentIndividual Protections. The finalspeaker of the panel was Teo Budanko,President, Zagreb Architects Society;Director, ABWD d.o.o. who competentlyand professionally spoke about the roleof architects and tenders for skyscraperdesign. The moderator of the panel wasKrešimir Galović, Art Historian, Ministryof Culture.Croatian Real Estate Newsletter, September 2013 13

The panels were followed by a set ofround tables, where the moderatorslead a smaller group of Symposiumparticipants through a discussion abouta series of interesting topics concerning:the development of high-rises andskyscrapers, a question of living andworking in skyscrapers, development,design, construction, branding andmany more important topics. With thisformat of Round Tables participantscould share their experiences, opinions,suggestions and business informationand with that improve their overallknowledge about the matter addressedat the Symposium.Seven interesting Round Tables were held.Following are their names and moderators:• Does Zagreb Need Skyscrapers?;Moderator: Ivica Fanjek, Head, CityInstitute for Urban Planning, City ofZagreb• Skyscrapers as Mixed-Use Projects;Moderator: Una Barac, Director, ScottBrownrigg• Do Residents of Zagreb Want toLive in Skyscrapers?; Moderator:Dubravko Ranilović, Partner, Kastel RealEstate, Zagreb; President, Real EstateAssociation at the Croatian Chamber ofCommerce• Design and Spatial Organization ofSkyscrapers; Moderator: Otto Barić,Director, Arhitektura tholos projektiranjed.o.o.• How to Brand a Skyscraper?;Moderator: Davor Bruketa, Creative Directorand Cofounder, Bruketa&Žinić OM• Design and Spatial Organization ofCommercial Skyscrapers; Moderator:Ingrid Gojević, Department Head,Project Development Department,Zagreb-Montaža d.o.o.• Maintenance of Existing Skyscrapers;Moderator: Karla Vučković, Directorfor Development, Investment and RealEstate Management, Tita grupa d.o.o.A green thread was present throughall the Round Tables, as green andsustainable building is extremelyimportant for every new project ofskyscraper construction. CroatiaGreen Building Council was the GreenAssociate of the Symposium, whilethe President of the Council HrvojeKvasnička and Executive DirectorSnježana Turalija actively participatedin the Round Tables.We would like to thank allspeakers, moderators andparticipants of the Symposiumfor their active, professionaland collegial engagement andcontribution to the success ofthe Symposium. We have jointlycreated an atmosphere filled withenergy, intellect and inspiration.We have showed that we have theexpertise, ambition and passionfor the development of Zagreb asa modern European metropolis.Croatian Real Estate Newsletter, September 2013 14

A special thanks once again to all the sponsorsand business partners of the Symposium:Croatian Real Estate Newsletter, September 2013 15

4. STATISTICS4.1. Average Asking Prices of Real EstateOffered for August 2013.average price EUR/m²price range EUR/m²ZAGREBCOASTHousingApartments 1.852 549 – 6.667Houses 1.492 312 – 9.167Commercial spaceOffices 1.931 700 – 4.865Business premises 2.041 722 – 7.500Office blocks 1.784 132 – 3.793HousingApartments 1.818 545 - 8.196Houses 1.784 90 – 18.269Commercial space 1.885 80 - 4.338Tourist facilities 1.927 146 – 15.748Average is calculated on the basis of the currently quoted prices on the Burza nekretnina d.o.o.(Real Estate Stock Market ltd.), which is available online: www.burza-nekretnina.com.4.2. Statistical Reports of the Central Bureau of Statisticsfrom the Area of Construction4.2.1 Construction work indices, June 2013According to gross indices, in June 2013, as compared toJune 2012, construction works decreased by 4.5%. Accordingto working-day adjusted indices, in June 2013, as comparedto June 2012, construction works decreased by 2.2%.According to seasonally adjusted indices, in June 2013, ascompared to May 2013, construction works increased by2.4%.Advice: Construction work indices, June 2013, Central bureauof statistics, Zagreb, 2013Croatian Real Estate Newsletter, September 2013 16

4.2.2 Building permits issued, July 2013In July 2013, there were 467 building permits issued, whichwas by 33.9% less than in July 2012. The total number ofbuilding permits issued in the period from January to July2013 was by 29.6% less than in the same period of 2012. InJuly 2013:- by types of constructions, 80.3% out of the total numberof permits were issued on buildings and 19.7% on civilengineering works- by types of construction works, 78.4% of permits wereissued on new constructions and 21.6% on reconstructions.According to permits issued in July 2013, it was expected for475 dwellings with the average floor area of 99.7 m2 to bebuilt.Advice: Building permits issued, July 2013, Central bureau ofstatistics, Zagreb, 2013Croatian Real Estate Newsletter, September 2013 17

PUBLISHER:Filipović Business Advisory Ltd.Trg bana Josipa Jelačića 3/V10000 Zagreb – CroatiaTel: +385 1 481 69 69Fax:. +385 1 483 80 60e-mail: cren@filipovic-advisory.comIt is our wish that the Croatian Real Estate Newsletter / CREN be a sourceof speedy and quality information for all who are active in the realestate sector – developers, planners, contractors, mediation agenciesetc.Please send your comments, proposals and opinions tocren@filipovic-advisory.com to help us improve CREN and make it theleading medium on the Croatian real estate market.Editorial staff:Vladimir Filipović – editor-in-chief, Natalija Kordić, Tanja Marković,Bojana Mikelenić, Marija Noršić and Petra Škevin.Croatian Real Estate Newsletter, September 2013 18