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Everything you need to know before buying real estate is included in our Croatia Property Pack
Thinking about buying a 3-bedroom apartment in Split? It’s a fantastic area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other regions like Dubrovnik or Zagreb where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Croatia Property Pack.
Will property prices increase in Croatia in 2025?
Yes, property prices in Croatia are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Croatia remains an attractive destination for both domestic and international investors.
While there are some economic challenges like inflation and rising interest rates, the main drivers behind Croatia’s price growth remain strong.
Demand, especially in popular coastal areas and major cities, continues to outstrip supply, making significant price drops unlikely. Additionally, Croatia's appeal as a tourist destination and its growing economy contribute to the positive outlook for property prices.
Signals pointing to a property price increase in Croatia
Here are some factors suggesting prices could increase:
The ongoing popularity of Croatia as a tourist destination is expected to continue, driving demand for holiday homes and investment properties, particularly along the Adriatic coast.
Croatia's entry into the Schengen Area and the adoption of the euro are likely to enhance its attractiveness to foreign investors, increasing demand for real estate.
The limited availability of land for new developments in prime locations, especially in coastal areas, is expected to keep supply tight and support price increases.
Government initiatives to improve infrastructure, such as transportation and utilities, are likely to enhance property values, particularly in less developed regions.
The trend of remote working is encouraging more people to consider relocating to scenic and affordable locations like Croatia, boosting demand for residential properties.
Croatia's stable political environment and growing economy are attracting more international businesses, increasing demand for commercial and residential properties.
The increasing interest from digital nomads and expatriates seeking a high quality of life is expected to drive demand for properties in urban and coastal areas.
Signals pointing to a property price decrease in Croatia
Here are some factors suggesting prices could fall:
Rising inflation and living costs may reduce the purchasing power of local buyers, potentially dampening demand for properties.
Higher interest rates could make financing more expensive, discouraging potential buyers and investors from entering the market.
Economic uncertainties in the broader European market could impact investor confidence, leading to a slowdown in property investment in Croatia.
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If property prices go up in Croatia, how much would they increase by?
If real estate prices in Croatia were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Croatia appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Dubrovnik for 200,000 euros today, don't be surprised if it's priced between 206,000 and 214,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Croatian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Coastal Apartment (60 sqm / 646 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
| Modern Apartment (75 sqm / 807 sqft) | €200,000 | €206,000 | €210,000 | €214,000 |
| Luxury Villa (100 sqm / 1,076 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Studio (30 sqm / 323 sqft) | €80,000 | €82,400 | €84,000 | €85,600 |
| Loft (80 sqm / 861 sqft) | €250,000 | €257,500 | €262,500 | €267,500 |
| Townhouse (150 sqm / 1,615 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Investment Property (50 sqm / 538 sqft) | €120,000 | €123,600 | €126,000 | €128,400 |
Everything you need to know is included in our Property Pack for Croatia
If real estate prices go up in Croatia, which areas are likely to see the biggest increases?
Today, people who want to move to Croatia are looking for stunning coastal views and a blend of traditional and modern living, which Dubrovnik offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Zagreb's Lower Town has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Croatian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Dubrovnik Old Town | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Split City Center | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Split. |
| Zagreb's Lower Town | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Rijeka Waterfront | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Pula Coastal Area | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Zadar Peninsula | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Hvar Island | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Zagreb's Upper Town | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Opatija Riviera | Medium-High | Its proximity to Rijeka, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Šibenik Old Town | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Rovinj | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Korčula Island | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Croatia?
In 2025, Croatia's real estate trends focus on tech-smart, energy-efficient coastal apartments, larger countryside homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Coastal Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in coastal cities like Split and Dubrovnik.
- Family-Sized Homes in Countryside Areas:
With a growing demand for larger living spaces, especially among families, countryside areas near cities like Zagreb and Rijeka are seeing increased interest. Proximity to nature and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In scenic locations across Croatia, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Croatia's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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