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The best solution I've found so far is cleaning the back camera lens with a cotton bud & some toothpaste.
See this video which demonstrates the process: https://www.youtube.com/watch?v=C0Y57xrKXj0
I got Z3 Compact 2nd hand it the pictures taken with main (rear) camera were very blurry, especially when you had some light source (bulb) in the picture).
The above solution improved the picture quality a lot.
However, I can see some minor scratches at the lens frame (plastic cover), so cannot make it perfect).
When compared to a friend of mine who has the same phone, his picture quality is immaculate (better than mine, after applying the above workaround