Authored by the expert who managed and guided the team behind the Croatia Property Pack
Everything you need to know before buying real estate is included in our Croatia Property Pack
Why is Croatia emerging as a prime destination for property investment in 2025? Is it the stunning Adriatic coastline, the thriving tourism sector, or the competitive pricing compared to other European markets? What are the key benefits for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Croatia's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) In Croatia, you can find affordable properties with better returns than in Western Europe
Thinking about buying property in Croatia? It's more affordable than Western Europe.
In 2023, the average price for new homes in Croatia was €2,219 per square meter. This is a bargain compared to cities like Paris or London, where prices are sky-high. If you're looking to invest without breaking the bank, Croatia is a smart choice.
Not only are the prices lower, but Croatia also offers higher rental yields, especially in tourist hotspots. In Zagreb, for example, rental yields ranged from 3.39% to 6.3%, while in Split, they were between 3.63% and 4.45%. These numbers are music to the ears of investors who want better returns, particularly in areas buzzing with tourists.
The Croatian government sweetens the deal with favorable tax conditions for foreign buyers. The real estate transfer tax is just 5%, which is quite low compared to many Western European countries. This means your overall investment cost is reduced, making it even more appealing.
Foreign interest in Croatian real estate is strong, with nearly one in four buyers being a foreign national. This steady increase in international investment shows that people worldwide see the value in Croatia's market.
Sources: Expat in Croatia, Avison Young Market Report, Global Property Guide
In this video, Croatia's record-breaking 17% property price growth is highlighted, showcasing its growth potential.
2) Croatia’s coastline has unique properties with stunning Adriatic views, perfect for high-end buyers
Croatia's coastline is a hotspot for high-end property buyers due to its breathtaking Adriatic Sea views.
In 2024, the average price of new homes along the coast jumped by 7.12%, with seafront properties being the most sought after. This surge highlights the irresistible charm of the region's natural beauty and the dream of seaside living. Imagine waking up to the sound of waves in places like Dubrovnik or Split, where the demand for luxury real estate is booming.
Thanks to Croatia's thriving tourism industry, with over 20 million visitors each year, there's a growing need for vacation homes and rental properties. This demand is pushing property prices up, making the coastline a prime spot for those looking to invest or enjoy a lavish lifestyle. Picture owning a piece of paradise in Istria, where the blend of history and modern luxury is unmatched.
Foreign investment in Croatian real estate is on the rise, with €104.5 million invested in the first quarter of 2024. Croatia's stable economy and EU membership make it a magnet for international buyers. The presence of global real estate developers investing in coastal projects only adds to the region's allure, offering unique opportunities for those looking to invest in a growing market.
Imagine the potential of owning a property in a country where the economy is stable, and the real estate market is thriving. The combination of stunning views, a booming tourism industry, and increasing foreign investment makes Croatia's coastline a unique and attractive option for high-end buyers.
Sources: Global Property Guide, Integra Dom, Travel and Tour World
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Croatia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) With more expats moving in, there’s a higher demand for international-standard housing in the country
In 2023, Croatia welcomed 69,396 new expatriates, including many from Ukraine.
Foreigners are snapping up properties, with 12,300 homes bought by them last year. Germans and Slovenians are leading the charge, especially along Croatia's stunning coastline.
The real estate market is buzzing, with new projects popping up to cater to expatriates. These developments are designed to meet international housing standards, making them attractive to foreign buyers.
Short-term rentals are booming, particularly in coastal hotspots. This surge has led to rising rental prices, as more expatriates seek temporary homes.
With a growing expatriate community, there's a clear demand for housing that meets international expectations. This trend is reshaping the market, offering opportunities for those looking to invest.
Whether you're considering a move or an investment, Croatia's real estate scene is vibrant and full of potential. The influx of expatriates is driving significant changes in housing demand.
Sources: DZS Croatia, Connecting Region, CroReal
4) Croatia’s diverse climate offers you real estate options from the coast to the mountains
Croatia's diverse climate zones offer a wide range of real estate opportunities for potential buyers.
Along the stunning Adriatic Coast, places like Dubrovnik and Split are hot spots for property investment. These areas have seen rising property values thanks to their popularity as tourist destinations. The demand for vacation homes and short-term rentals is high, making them attractive for those looking to invest.
The coast's crystal-clear waters and sunny weather are a big draw for buyers. Historic towns add to the charm, leading to increased property values in areas with strong tourism appeal. The tourism industry, which has been a significant part of Croatia's economy, continues to support this trend.
Inland, places like Gorski Kotar are catching the eye of those interested in eco-tourism and sustainable living. The natural beauty and outdoor activities in these mountainous regions attract buyers seeking environmentally conscious lifestyles. The government also offers incentives for property development in less populated areas, encouraging investment and balanced growth.
For those interested in a quieter lifestyle, these inland regions provide a perfect escape. The combination of natural beauty and government support makes them an appealing choice for eco-friendly living and investment.
Whether you're drawn to the bustling coast or the serene mountains, Croatia's varied climate zones offer something for everyone. The country's diverse landscapes and supportive policies create unique opportunities for property buyers.
Sources: Croatia Real Estates, Integra Dom, IntelliNews, Connect Houses
5) You’ll find less competition in Croatia’s property market, giving you great growth potential
In 2023 and 2024, Croatia's real estate market offered some of the most affordable property prices in Europe.
With an average price of €2,377 per square meter for new flats, buying property in Croatia is a bargain compared to other European hotspots. This affordability is drawing attention from international buyers, especially those looking for a good deal in a beautiful location. The influx of foreign investment is evident, with cash transactions making up 55% of purchases, showing a strong interest from overseas.
Croatia's appeal isn't just about prices; its sunny climate and relaxed lifestyle are magnets for retirees and expats. These groups are increasingly choosing Croatia as their new home, adding to the demand for properties. The country's charm and quality of life are hard to resist, making it a top choice for those seeking a change of pace.
Investors are also eyeing Croatia for its lower transaction costs and taxes compared to other European markets. This financial advantage means better returns on investment, making it an attractive option for those looking to maximize their profits. The market's potential is further enhanced by the limited number of new construction projects, hinting at a possible supply shortage.
This scarcity in new builds could lead to increased demand and rising prices for existing properties. For buyers, this means getting in now could be a smart move before prices climb. The local real estate market is less saturated than other European destinations, offering growth potential.
Whether you're considering a vacation home or a permanent move, Croatia's real estate market presents a unique opportunity. The combination of affordability, lifestyle, and investment potential makes it a compelling choice for property buyers.
Sources: Croreal, Croatia Week, Hindustan Times
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6) With healthcare getting better, Croatia is becoming a top choice for retirees looking for property
Croatia's healthcare system is becoming more attractive for retirees due to significant government investments in healthcare infrastructure.
In recent years, the country has seen the construction of new hospitals and upgrades to existing facilities, enhancing the quality and accessibility of healthcare services. This is crucial for retirees who prioritize reliable medical care.
Digital health solutions like telemedicine and electronic health records are making a big difference, especially in remote areas. These technologies help healthcare providers deliver more efficient care, which is a boon for retirees living outside urban centers.
The medical technology market in Croatia is on the rise, focusing on advanced innovations like imaging systems and diagnostic equipment. This growth is part of a broader effort to improve healthcare delivery across the country.
To meet the increasing demand for healthcare services, Croatia is training and employing more healthcare professionals. The government is also working to attract medical professionals from abroad, ensuring the system can support an aging population.
The new Health Care Act adopted in 2023 aims to strengthen primary care and the hospital system, improving service integration and patient care. This legislative move is part of Croatia's commitment to enhancing its healthcare landscape.
Sources: Euro Health Observatory, Trade.gov, Statista
7) Croatia’s location is perfect for frequent travelers, making it a convenient travel hub
Croatia's location in Europe makes it a prime travel hub for those who frequently journey across the continent.
Since joining the European Union in 2013, travel and business within the EU have become much easier for Croatia. This has opened doors for trade and reduced barriers, making it simpler for people to move around. Croatia's proximity to major European cities means direct flights to and from many European capitals are readily available, enhancing its connectivity.
With a well-developed transportation infrastructure, including highways and railways, Croatia connects seamlessly to neighboring countries. This makes travel smooth and efficient. The country also boasts several international airports, such as those in Zagreb, Split, and Dubrovnik, which provide direct flights to various European destinations.
These airports make it easier for travelers to reach Croatia, adding to its appeal as a travel hub. Furthermore, since January 2023, Croatia's participation in the Schengen Area has removed border controls for tourists from Schengen-area countries, making travel even more convenient.
For frequent travelers, Croatia's strategic location and infrastructure offer a blend of accessibility and ease. Whether you're flying in or driving through, the journey is straightforward and hassle-free. This makes Croatia not just a destination, but a gateway to the rest of Europe.
Sources: Boric Law, Emerging Europe, Frank About Croatia
8) With many festivals and cultural events, Croatia is perfect for short-term rentals to international visitors
Croatia's festivals and cultural events are a big draw for international visitors, creating a boom in short-term rental opportunities.
Take Ultra Europe, for example. In 2023, it pulled in 150,000 fans from 143 countries, bringing a whopping 76.5 million euros to the Split region. This kind of crowd naturally cranks up the demand for short-term rentals, as people look for places to stay that are both convenient and flexible.
By the end of August 2024, Croatia had welcomed 16.9 million tourists, with festivals like Ultra Europe playing a huge part in this surge. The lively cultural scene not only attracts visitors but also nudges property owners to offer their homes as short-term rentals.
The Croatian Government has even recognized Ultra Europe as a strategically important project, underscoring its role in boosting tourism and the local economy. This official nod, along with the buzz from media and social media, makes the festival even more appealing to a global audience, which in turn drives up the demand for short-term rentals in cities like Split and Dubrovnik.
Sources: Total Croatia News, Electric Mode, The Dubrovnik Times
We have made this infographic to give you a quick and clear snapshot of the property market in Croatia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) With a booming tech industry, more young professionals are looking for homes in the country
The tech industry in Croatia is booming.
In 2023, venture capital funding in Croatia hit €92 million, a 30% jump from the previous year. This boost has fueled startups like Agrivi, Cognism, and Entrio, drawing investments from both local and international venture capitalists. The buzz around these companies is palpable, with many seeing them as the next big thing in tech.
Foreign investment is pouring into Croatia's tech scene, with IT exports reaching €3.44 billion in 2023. This shows a strong global interest in Croatian tech firms, further enhanced by international venture capital funds teaming up with local ones. The Croatian government is also playing its part, pushing digital transformation with hefty investments from the Recovery and Resilience plan, creating a fertile ground for tech innovation.
The tech job market is on a fast track, with computer and IT roles expected to grow much quicker than average from 2023 to 2033. This boom is drawing a wave of foreign professionals to Croatia, with over 160,000 work and residence permits issued to foreign nationals by the end of 2023. This influx is driving up the demand for housing, especially in tech hotspots like Zagreb and Split.
For those considering buying property in Croatia, the tech industry's growth is a key factor. The influx of young professionals is not just boosting the economy but also reshaping urban areas, making them vibrant and full of potential. The demand for housing is rising, and with it, the opportunity for investment in real estate.
Sources: Maddyness, Total Croatia News, International Trade Administration
10) In this country, you’ll find a strong sense of community, perfect if you’re looking for a friendly place to live
Croatia is known for its strong sense of community, making it an attractive place for those seeking a friendly living environment.
One of the highlights is the International Folklore Festival in Zagreb, a tradition since 1966, which celebrates the rich diversity of Croatian heritage. This festival is a lively display of community spirit, where locals and visitors alike come together to enjoy cultural performances and connect with each other.
According to the CIVICUS Civil Society Index Report, there's a notable sense of belonging among residents, particularly among the younger and more educated crowd. This indicates that many Croatians feel deeply connected to their communities, actively participating in civic activities and local events.
Festivals like the Rijeka Carnival and Zagreb Festival of Lights are not just events; they are integral to the community's vibrant atmosphere. These gatherings offer a chance for people to mingle, celebrate, and strengthen their bonds, contributing to the overall welcoming vibe of the country.
Safety is another key factor, with Croatia boasting low crime rates that enhance community trust. This sense of security allows residents to form strong relationships and feel at ease in their neighborhoods.
The government supports this community cohesion through various initiatives aimed at promoting well-being and development. These efforts ensure that people feel secure and connected, fostering an environment where community ties are strong.
Sources: CIVICUS Civil Society Index Report, Wanderlust Magazine
11) With Croatia’s cultural heritage and UNESCO sites, you can easily rent out your property short-term to tourists
Croatia's rich cultural heritage and UNESCO sites are a big draw for tourists, boosting the potential for short-term rentals.
In 2023, Croatia welcomed 20.6 million tourists, a 9% jump from the previous year, with 108 million overnight stays. This trend continued into 2024, with 19.3 million visitors by September, showing a growing interest in the country's cultural and historical attractions.
Destinations like Dubrovnik, Split, and Poreč, known for their UNESCO World Heritage Sites, are major tourist magnets. The Croatian government is pushing for sustainability and off-peak travel, making it easier for tourists to enjoy these sites year-round.
With more tourists flocking to these cultural hotspots, short-term rental properties are seeing higher occupancy rates. While specific Airbnb data isn't available, the surge in tourists points to a booming market for short-term rentals, offering a promising investment opportunity.
Sources: Schengen News, Travel Daily News
The video highlights UNESCO heritage sites in Croatia, enhancing tourism and property values.
12) Croatia’s varied landscape is perfect for niche markets like agritourism and adventure tourism
Croatia's diverse landscape is a goldmine for niche markets like agritourism and adventure tourism.
Since joining the EU in 2013, Croatia has seen a boom in organic farming, with organic production areas tripling by 2021. This surge supports agritourism, offering visitors a taste of authentic rural life and organic farming. Imagine staying on a farm, picking fresh produce, and learning about sustainable practices firsthand.
In 2024, Croatia welcomed 19.3 million visitors, many drawn to adventure activities such as hiking, cycling, and water sports. The country's breathtaking landscapes and diverse outdoor options make it a hotspot for adventure tourism. Whether you're exploring the rugged mountains or kayaking along the Adriatic coast, there's something for every thrill-seeker.
Rural tourism is also on the rise, with a significant increase in registered tourist rural family households. This trend reflects a global shift towards experiential travel, where people crave authentic, local experiences. Staying in a rural household lets you immerse yourself in the local culture, savor homemade meals, and enjoy the tranquility of the countryside.
Adventure tourism is thriving, thanks to Croatia's natural beauty and varied terrain. From the Plitvice Lakes to the Dalmatian coast, the country offers endless opportunities for outdoor enthusiasts. Whether you're a seasoned adventurer or a casual explorer, Croatia's landscapes promise unforgettable experiences.
With its growing organic farming sector and stunning natural attractions, Croatia is perfectly positioned to cater to niche tourism markets. The combination of agritourism and adventure tourism offers a unique blend of activities that appeal to a wide range of travelers, making it an ideal destination for those seeking something different.
Sources: EkoConnect, Travel Daily News, Hrcak
13) Croatia is becoming a luxury travel hotspot, which boosts demand for vacation rentals
Croatia is quickly becoming a hotspot for luxury travel.
With the rise of new luxury hotels like the Hyatt Regency Zadar Maraska and Riva's Hotel in Ičići, Croatia is making a bold statement in the world of high-end tourism. These developments are not just about adding more rooms; they are about creating experiences that cater to the tastes of affluent travelers. Imagine sipping a cocktail by the Adriatic Sea, surrounded by the elegance and comfort these places offer.
In 2024, Croatia saw a 10.2% increase in international tourists, a clear sign of its growing allure. This surge is partly due to better travel connections, thanks to government efforts to boost tourism infrastructure. Whether you're flying in from Europe or beyond, getting to Croatia has never been easier, making it a more attractive destination for those seeking luxury.
The country is also expanding its luxury yacht and marina facilities, appealing to those who prefer to explore the stunning coastline by sea. High occupancy rates for vacation rentals during peak seasons show a rising demand for upscale accommodations. It's not just about staying somewhere nice; it's about experiencing the best Croatia has to offer, from its crystal-clear waters to its vibrant culture.
Endorsements from travel influencers and celebrities are adding to Croatia's charm as a luxury destination. When you see your favorite celebrity enjoying a Croatian sunset, it’s hard not to imagine yourself there too. These endorsements are more than just social media posts; they are powerful testimonials that elevate Croatia's status in the luxury travel market.
All these factors contribute to Croatia's growing reputation as a luxury travel destination, which in turn is driving up the demand for vacation rentals. Whether you're considering buying a property for personal use or as an investment, the increasing interest in Croatia as a luxury hotspot is something to keep an eye on.
Sources: Travel and Tour World, Real Estate Magazine, Croatia Week
14) You can increase your property’s value with government incentives for restoring homes in historical areas
The government offers incentives for property restoration in historical areas to boost property value.
Take the Peristyle of Diocletian's Palace in Split, for example. Its restoration didn't just preserve history; it also boosted the local economy by creating jobs and attracting new businesses. The Cipci Palace is another success story, transformed into a bustling café, showing how these projects can breathe new life into old structures.
Restored historical properties are economic powerhouses. They not only support local economies but also create new job opportunities. Croatia's tourism boom, with millions of visitors each year, highlights the economic perks of preserving cultural heritage. This trend has been on the rise, especially with more foreign tourists arriving in 2022 and 2023.
Property values in historical areas are on the up and up. The high-end residential market is seeing significant growth, particularly in coastal and holiday spots. This surge in property prices underscores the allure of restored historical properties, which often outshine their non-historical counterparts in value.
In Croatia, the average price of new dwellings has climbed, especially in areas rich with history. This trend is a testament to the attractiveness of restored historical properties, making them a hot commodity for buyers looking for unique and valuable investments.
Sources: Croatia's Residential Property Market Analysis 2024, Economic impact of cultural heritage preservation
We made this infographic to show you how property prices in Croatia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Croatia’s natural parks and outdoor activities draw eco-tourists, increasing demand for eco-friendly properties
Croatia's natural parks and outdoor activities are a big draw for eco-tourists, thanks to the country's beautiful landscapes and focus on sustainability.
In 2023, Plitvice Lakes National Park attracted over 1.1 million visitors, showing its immense popularity and the satisfaction it brings to tourists. This park, with its cascading lakes and lush forests, is a prime example of Croatia's natural beauty. The Croatian Ministry of Tourism is actively promoting sustainable travel, encouraging visitors to explore beyond the usual hotspots and during less busy times.
Eco-tourism is steadily growing, with visitor numbers to all eight national parks increasing by nearly 5% from 2020 to 2024. This growth is not just about numbers; it's about a shift in how people want to experience nature. More travelers are seeking eco-friendly options, and Croatia is meeting this demand with initiatives like the Eco Domus label in Istria.
In Istria, the Eco Domus program certifies accommodations that follow sustainable practices. As of 2024, there are 45 certified properties, offering eco-conscious travelers a variety of lodging options. This initiative is part of a broader trend in Croatia, where eco-friendly accommodations are becoming more popular, especially in regions known for their natural beauty.
For those considering buying property in Croatia, this trend towards sustainability and eco-tourism is significant. Properties near these natural attractions are in demand, not just for their location but for their potential to offer eco-friendly living. The rise in eco-tourism is boosting interest in properties that align with sustainable living principles.
As more tourists flock to Croatia for its natural wonders, the demand for eco-friendly properties is likely to grow. This is an exciting time for potential buyers who value sustainability and want to be part of a community that prioritizes the environment.
Sources: Visitors Statistics for Croatian National Parks, Region of Istria – Croatia, Croatia Sees 10.2 Per Cent Increase in Foreign Tourist Arrivals in October
In this video, we explore Krka National Park's attractions, which drive eco-friendly property demand.
16) With Croatia focusing on sustainable tourism, eco-friendly properties are in high demand
Croatia is seeing a surge in demand for eco-friendly properties thanks to its commitment to sustainable tourism.
In the past decade, the number of contractors using energy-efficient systems in Croatia has jumped from 7% to 21%. This shift highlights a broader trend in the construction industry towards sustainability. The Croatian government has been instrumental in this change, offering incentives and passing legislation to promote eco-friendly practices. The 2023 Tourism Law, for instance, provides investment incentives based on sustainability criteria, encouraging businesses to align with the country's green goals.
Tourists are increasingly drawn to sustainable destinations, and this shift in consumer preferences is driving the demand for properties that focus on environmental practices. More hotels and resorts in Croatia are now implementing energy-efficient systems, waste reduction strategies, and renewable energy sources to cater to this demand. This trend is not just about meeting consumer expectations; it's also about aligning with Croatia's vision for sustainable tourism.
For those considering buying property in Croatia, this means there are more options than ever for environmentally friendly homes. Whether you're looking for a vacation home or an investment property, the market is ripe with opportunities that prioritize sustainability. The government's support and the growing consumer interest in eco-friendly living make Croatia an attractive destination for green property investments.
As the country continues to push for sustainable tourism, the real estate market is likely to see even more developments that focus on eco-friendly features. This is a great time to explore the possibilities of owning a property that not only meets your needs but also contributes to a more sustainable future. With the right investment, you can be part of Croatia's journey towards a greener tomorrow.
Sources: Total Croatia News, Ministry of Tourism and Sports, Euronews
17) The local government's infrastructure investments make properties more accessible and valuable
The Croatian government is making big moves to boost property value by investing in infrastructure.
In 2024, they poured funds into projects like new buses, trams, and road infrastructure in Zagreb. These aren't just random upgrades; they're about making the city more connected. Take the Jarun Bridge, for instance. It's set to link western Zagreb with Novi Zagreb, offering a new exit to the ring road, which is a game-changer for property accessibility.
Public transport is getting a facelift too. Out with the old buses and in with new low-floor trams. This means less congestion and a cleaner city, which is a win-win for everyone. For residents, it's a better quality of life. For potential buyers and investors, it's a more attractive market.
These changes are not just about convenience. They're about making Zagreb a more appealing place to live and invest in. With better transport links, properties in these areas are becoming more desirable. It's like the city is rolling out the red carpet for new homeowners and investors.
So, if you're thinking about buying property in Zagreb, now might be the time. The local government's push to improve infrastructure is making the city more accessible and boosting property values. It's not just about roads and bridges; it's about creating a city that's easier to navigate and more enjoyable to live in.
Sources: Total Croatia News, Croatia Week
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.