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Balkans.com: As the Managing Director of Colliers International Croatia, please introduce your company to our readers.

Vedrana Likan: Colliers International is a global company for real estate business with 12.300 employees present in 62 countries through more than 522 offices. Colliers Croatia was founded in 2004 and since then holds the place of market leader in Croatia. We provide a full range of real estate services to users, owners and investors on a local, regional and international level. 

Balkans.com: As the Managing Director of Colliers International Croatia, please introduce your company to our readers.

Vedrana Likan: Colliers International is a global company for real estate business with 12.300 employees present in 62 countries through more than 522 offices. Colliers Croatia was founded in 2004 and since then holds the place of market leader in Croatia. We provide a full range of real estate services to users, owners and investors on a local, regional and international level. The basis of Colliers services are understanding of local market, but at the same time our clients can completely rely on an extensive network of contacts, projects and companies, regardless of the boundaries of countries or market segments. As one of the leading real estate companies in the world, Colliers is aware of the responsibility and obligation to set an example to their employees, customers and the public in caring for sustainable development and environmental protection. Thus, the Colliers Croatia is one of the founders of the Green Building Council of Croatia.

Balkans.com: What are the challenges that real estate companies such as Colliers International face in Croatia?

Vedrana Likan: Croatia's accession to the EU will be coupled with the entry of new retailers, freight and distributions players will stimulate the industrial market, increasing its appeal to foreign investors and operators. The key challenge facing Croatian's retail industry is how to deal with the abundance of supply brought on by the rapid development during the previous decade and the sharp decline in consumer spending and growth that followed. This situation is already leading to the fierce competition for tenants between landlords and has been the balance of power shift dramatically towards tenants during negotiations.

Balkans.com: Could you tell us about the effects of economic crisis on real estate market in Croatia?

Vedrana Likan: Croatian market in 2012 has not had significant amount of investment deals and witnessed low levels of transaction activity. The property market has been adversely affected by the country's stagnating economy and the Euro zone sovereign debt crisis. Some of the factors that influenced this investment climate in Croatia were the contraction of GDP by 1.6% in 2012 compared to 2011. Other factors contributing to a slowdown in the Croatian economy included VAT increase from 23% to 25% as well as growth in energy prices. All major GDP components declined as the Government failed to start up a new investment cycle trough public company ventures and attracting FDI. The 2012 saw the opening of only one new shopping centre in the capital which was the result of the expansion of the City Centre. Despite the fact that the vacancy levels increased in 2012, additional office space is expected to come to market in this year. Yields in the retail market rose to 8.5% due to the highly depressed retail sector and falls in private consumption which strongly affected retailer's trading performance. The industrial and logistic sector remained the least developed real estate sector in Croatia, despite Zagreb, major cities and their suburbs operate as main centres of national industrial, warehouse and logistics activity.

Balkans.com: Your company is honored by many professional associations and independent publications as a leader in real estate. Could you tell us more about awards Colliers International has achieved?

Vedrana Likan: Colliers International is honoured by many professional associations and independent publications as a leader in real estate, both for our business accomplishments and our passion for innovation and social responsibility. We were named three consecutive years, 2005, 2006, 2007 best Consultant/Agent in Southeast Europe. Colliers Croatia was awarded in 2009 with Best in Customer Service Award. Colliers International is consistently ranked one of the world's top commercial real estate brands, according to a survey by The Lipsey Company, and is included in the list of world's top 100 outsourcing providers for 2010 according to an international organization of professional foreign service providers (IAOP). The latest achievement of Colliers International is the prize 'Best Financial Advisor' in the Middle East and Africa by the World Finance in their 2013 Public Private Partnership (PPP) Awards for Middle East and Africa. The World Finance Award to Colliers is based on their interdisciplinary approach to financial advisory in PPP specifically in relation to Healthcare and Education Projects, including: valuation, operator selection and contract negotiation, due diligence, feasibility studies, strategic planning and risk management.

Balkans.com: Our readers are companies, investors, and business people, who have invested or are interested in doing business in the region. What advice could you give them?

Vedrana Likan: Croatia will access EU in June 2013 and this should improve business sentiment and bring changes in investor's perception of Croatian market which will help to harden current yield levels. Furthermore, specific government measures aimed at reducing the average cost of capital for companies with development potential are expected to have a positive impact on the domestic market in 2013. Retail market will be driven mostly by positive expectation regarding the disposable income growth. This should increase the sales volume and also give a positive upward pressure on the rent levels. Colliers International is here to help its clients to cope with all the challenges on their way regarding the new government incentives because of their deep local market knowledge and relations with local institutions.