Property valuation in Croatia is regulated by the law on property valuation, which was adopted on July 3rd 2015 and has been in force since July 25th 2015.
The valuation of the property must be carried out with dilligence and by professionals, while taking into consideration all available evidence so that the result remains sustainable after verification.
Assessing the value of a property is used in real estate transactions, in order to determine the value of the pledged property, property insurance, dissolution of joint ownership, issues of investment and increase in property values, issues regarding property encumbrance or value loss, construction site development, urban land consolidation, expropriation and other activities regarding land particles.
A valuation is made on the basis of general value relations on the real estate market on day of valuation and based on the state of the property on the day of quality. General value relations on the real estate market encompass all circumstances relevant to the formation of real estate prices on the day of valuation, while taking into consideration normal business changes in supply and demand, such as the general situation of the economy, capital market and the economic and demographic development of the area.
The market value of the property equals the estimated amount for which the property could be exchanged on the valuation date between a willing buyer and a willing seller, in a transaction occurring under market conditions and after appropriate advertising has taken place, whereby each party acted in an informed and sensible manner, without compulsion.
When estimating the value of a property, the following issues are usually taken into consideration:
– The existence of high-quality spatial regulations that determine the land use
– Municipal equipment and degree of constructed installations
– Access to the land in question
– Vicinity to other buildings, roads and infrastructure
– Size of land and construction of the wider surreounding area
– Supply and demand for land at location in question
Valuation of the property may be carried out solely by authorized persons: permanent court experts and permanent court assessors, who state their opinions and findings in the official evaluation report.
It has been determined that within 60 days of the entry into force of the Act the database “eNekretnine” will be activated, which will first include a collection of sales prices, available to registered users only, and in the final stage, after the collected data has been processed and evaluated, it will draft plans of approximate property values, i.e. price blocks, that will be available to everyone at no extra cost.