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
Are you considering investing in Croatia's real estate market? Curious about the trends and statistics that could influence your decision in 2025? Want to know how property values and demand are shaping up in this picturesque country?
We will lay down recent insights. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Croatia Property Pack
1) Demand for luxury apartments in Split is surging, with a 20% rise over the past two years
The coastal city of Split has seen a 20% rise in demand for luxury apartments over the past two years.
One major factor is the tourism boom. In 2022, Split welcomed over 1.5 million tourists, a 200% increase from a decade ago. This influx of visitors has driven up the need for short-term rentals, especially those offering modern amenities and comfort.
Split's strategic location and rich history make it a magnet for investors. Both domestic and international buyers are attracted by the potential for capital appreciation and rental income, which further fuels the demand for luxury properties.
Property prices in Split, particularly in the luxury segment, are rising. This reflects the city's growing recognition as a hotspot for international investors. The trend is expected to continue as more people seek to own a piece of this vibrant coastal city.
Sources: Connect Houses, Adriana Muštra, Total Croatia News
2) Short-term rentals dominate 30% of Dubrovnik's residential real estate market
In Dubrovnik, short-term rentals now make up about 30% of the residential real estate market.
This change is largely due to the rise of platforms like Airbnb, which has seen a boom in Dubrovnik with 4,503 active listings as of September 2024. These properties are in high demand, boasting a median occupancy rate of 81%, which shows just how popular they are with tourists. With an average daily rate of €136, it's clear why property owners are drawn to short-term rentals.
The Croatian government has taken steps to regulate these rentals, underscoring their impact on the housing market. Across Croatia, 10% of the housing stock is dedicated to short-term rentals, affecting real estate prices and reducing long-term rental availability. While specific numbers for Dubrovnik aren't available, this trend is evident nationwide.
Tourism's influence on housing markets is also seen in cities like Split, where 9% of the housing stock is for short-term rentals. This pattern likely mirrors what's happening in Dubrovnik, as property owners find economic benefits in catering to tourists over long-term tenants.
Sources: Airbtics, Intellinews, Croatia Week
Everything you need to know is included in our Property Pack for Croatia
3) New residential construction in Croatia is surging, with a 10% annual increase since 2023
The number of new residential construction projects in Croatia has been increasing by 10% annually since 2023.
In 2023, the Croatian Bureau of Statistics noted a surge in completed buildings, with most being residential. This boom in construction reflects a vibrant market, setting a strong foundation for future growth. The rise in residential property prices further highlights a strong demand for housing, pushing more projects to meet this need.
Croatia's real estate market, especially along the coast, is thriving. Properties with stunning sea views are in high demand, attracting investors. The appeal lies in moderate property prices, low taxes, and the potential for long-term value appreciation, which has likely driven the increase in residential construction.
For both local and international buyers, Croatia offers a compelling mix of affordability and potential. The coastal areas, in particular, are seeing a surge in interest, with investors eager to capitalize on the scenic beauty and promising returns.
As the market continues to grow, the construction sector is responding with more projects. This trend is not just about numbers; it's about meeting the evolving needs of a diverse buyer base, from locals seeking new homes to international investors looking for opportunities.
Sources: Croatian Bureau of Statistics, Panorama Scouting, Nacional
4) Pula's residential property prices are surging to €2,500 per square meter
In Pula, the average price per square meter for residential properties has reached €2,500.
For those considering a move, it's interesting to note that the median prices for apartments and houses in Pula are €2,882/m² and €2,734/m², respectively. This indicates a market with relatively high property values, reflecting the area's appeal and demand.
In November 2024, the average price for residential properties was €2,834/m², marking a 4.81% increase from the previous year. This steady rise suggests a strong demand, possibly coupled with a limited supply, which is pushing prices higher.
Looking at the trends, prices peaked at €3,039/m² in September 2024, while the lowest point was €2,650/m² in January 2023. These fluctuations show the market's dynamic nature, with an overall upward trend over time.
Sources: Properstar, Immobiliare.it, Properstar
5) Residential property demand in Osijek is surging, up 12% from last year
The demand for residential properties in Osijek has grown by 12% over the past year.
Osijek is seeing a notable rise in real estate prices, reflecting this increased demand. This trend is not isolated, as property prices across Croatia have been climbing, according to reports from CroReal.com and Total Croatia News. The city’s appeal is growing, and it’s becoming a hotspot for potential buyers.
Economic growth in Osijek is another factor fueling this demand. As one of the key cities in eastern Croatia, any economic boost tends to attract more residents, eager to settle in a thriving area. This influx of people naturally leads to a higher demand for housing, making Osijek an attractive market for property investment.
Tourism is also playing a part in this property boom. With Croatia’s tourism sector bouncing back, more visitors are considering investing in local properties. This trend often results in increased interest in residential properties, as tourists look to make a more permanent connection with the area.
Osijek’s growing popularity is evident in the real estate market, where the demand for homes is steadily climbing. This is a city on the rise, with a vibrant economy and a burgeoning tourism industry, making it an appealing choice for property buyers.
Sources: CroReal.com, Total Croatia News
Get to know the market before you buy a property in Croatia
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) Mortgage rates for homes in Croatia are around 3.5% now
In 2025, the average mortgage interest rate for residential properties in Croatia is about 3.5%.
Back in 2023, the average interest rate for new housing loans in Croatia was 3.72%, up from 3.54% in 2022 and 3.1% in 2021. This increase was driven by factors like inflation and a strong demand for housing. The Croatian housing market was thriving, with property prices rising, especially in coastal areas and popular holiday spots.
Interest rates varied widely, ranging from 3% to 7%, depending on the bank, the borrower's age, the repayment period, and their financial situation. By 2025, market conditions and economic policies may have led to a stabilization or slight decrease in interest rates, bringing the average to around 3.5%.
While specific predictions for 2025 weren't available, the general trend suggested that interest rates might stabilize around the levels seen in the past few years. This means that if you're considering buying property in Croatia, you might find the rates more predictable.
For those looking to invest, understanding these trends is crucial. The Croatian market has shown resilience, and with interest rates potentially stabilizing, it could be a good time to explore opportunities.
Sources: Global Property Guide, Investropa, Expat in Croatia
7) Split's new apartments are averaging 85 square meters
In 2023 and 2024, property prices in Croatia, including Split, rose despite economic challenges.
As prices climbed, developers in Split likely chose to build larger apartments to offer more value to potential buyers. These spacious homes are particularly attractive to families or individuals seeking more room, which helps justify the higher costs.
In Split, the average size of newly built apartments has increased to 85 square meters. This shift reflects a strategic response to market demands, where buyers are looking for more space and comfort.
Local real estate listings and market reports from Split provide valuable insights into these trends. By examining these sources, potential buyers can understand the factors driving the increase in apartment sizes.
For those considering a property purchase, consulting these resources can offer a clearer picture of the current market dynamics in Split. Understanding these trends is crucial for making informed decisions.
Sources: Expat in Croatia, Njuskalo - Split, Njuskalo - Splitsko-Dalmatinska
8) Croatia's rural real estate market is booming with a 10% activity surge since 2023
The residential real estate market in Croatia's rural areas has seen a 10% increase in activity since 2023.
This uptick is largely due to a growing interest in rural tourism, particularly in regions like Istria and Dalmatia. In these areas, over 5,000 vacation homes have been built, showcasing a surge in real estate activity fueled by tourism and investment. This development has sparked increased interest in rural properties.
Moreover, Croatia's tourism boom has significantly impacted the real estate market. With a noticeable rise in foreign tourist arrivals, there's been a heightened demand for residential properties in popular holiday spots. This demand has naturally extended into rural areas, further boosting real estate activity.
Investors are increasingly eyeing these rural regions, drawn by the potential for lucrative returns. The combination of affordable property prices and scenic landscapes makes these areas attractive for both personal retreats and rental opportunities.
Additionally, government incentives for rural development have played a role. These initiatives aim to promote sustainable tourism and local economic growth, encouraging more people to invest in rural properties.
As a result, the rural real estate market in Croatia is experiencing a dynamic shift, with new opportunities emerging for potential buyers looking to capitalize on this trend.
Sources: Croatia Week, Eurokonzalting, Global Property Guide
Everything you need to know is included in our Pack for Croatia
9) Dubrovnik's residential properties for sale dropped 8% last year
The number of residential properties available for sale in Dubrovnik has decreased by 8% over the past year.
Dubrovnik's charm lies in its historical architecture and stunning coastal views, making it a magnet for both local and international buyers. The Old Town, with its ancient walls and cobblestone streets, is particularly sought after, as are properties with breathtaking sea views. This allure has led to a surge in demand, as more people dream of owning a piece of this picturesque city.
However, the supply of new homes is not keeping pace with this demand. Strict regulations protect Dubrovnik's historical and cultural heritage, limiting new developments. These rules ensure the city retains its unique character but also mean fewer new homes are being built. As a result, the market is tight, with fewer properties available for eager buyers.
In this competitive market, potential buyers often face bidding wars, especially for properties in prime locations. High demand and limited supply naturally drive up prices, making it a challenging environment for those looking to invest. The scarcity of available homes means that when a property does come on the market, it doesn't stay there for long.
For those considering purchasing a home in Dubrovnik, it's essential to act quickly and be prepared for a competitive process. Understanding the local market dynamics can give buyers an edge, helping them navigate the complexities of buying in such a desirable location. With the right approach, owning a home in this beautiful city is still within reach.
Sources: Investropa, Panorama Scouting, Global Property Guide
10) Osijek's residential property prices surged 7% last year
In Osijek, the average price increase for residential properties over the past year is 7%.
This uptick is fueled by a vibrant real estate market, with both local and international buyers showing keen interest. Osijek's charm lies in its affordability and growing demand, making it a hotspot for property investment.
Foreign buyers, particularly from Germany and Austria, are significantly influencing this trend. Their interest is not just casual; it's driven by Osijek's economic stability and unique appeal, which in turn is pushing property prices upward.
Osijek offers a blend of cultural richness and modern amenities, attracting those looking for a balanced lifestyle. The city's strategic location and quality of life are key factors drawing in these international investors.
Moreover, the local government's initiatives to improve infrastructure and community services have made Osijek even more attractive. These efforts are enhancing the city's livability and investment potential, further boosting the real estate market.
As a result, Osijek is not just a place to live but a promising investment opportunity. The combination of rising demand and strategic development is setting the stage for continued growth in property values.
Sources: Croreal, Libertas Homes, Expat in Croatia
11) The average down payment for a home in Croatia is now 20% of the purchase price
In 2025, buying a home in Croatia means putting down an average of 20% of the purchase price as a down payment.
Just a couple of years ago, in 2023 and 2024, things were different. Back then, Croatian banks typically covered only 75% of the property's cost, leaving buyers to find the remaining 25% themselves. This higher upfront cost often made it tough for many to step into the housing market.
On top of that, there was something called "kapara," a deposit that was usually 10% of the sales price. This deposit acted as a safety net for sellers, ensuring buyers were serious. If a buyer decided to back out, they could lose this deposit as a penalty.
Now, with the down payment requirement reduced to 20%, more people might find it easier to consider buying a home. This change could open doors for those who previously found the financial barrier too high.
For potential buyers, understanding these shifts is crucial. It means knowing that the financial landscape has become a bit more accessible, potentially making homeownership a more realistic goal.
So, if you're thinking about buying property in Croatia, it's good to know that the financial requirements have become a bit more manageable, making it a potentially exciting time to explore the market.
Sources: Expat in Croatia, Expat in Croatia - Down payment, Expat in Croatia - Deposit
Buying real estate in Croatia can be risky
An increasing number of foreign investors are showing interest in Croatia. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) In Pula, three-bedroom houses are now averaging €250,000
In Pula, the real estate market has seen significant changes in 2023 and 2024.
By November 2024, the average price for residential properties in Pula reached €2,834 per square meter, reflecting a 4.81% increase from the previous year. This rise indicates a growing demand for housing, making it a competitive market for potential buyers.
While specific data for three-bedroom houses isn't available, the general trend suggests that prices for such homes are likely on the rise. The overall increase in property prices could mean higher costs for larger properties.
The median price for a house in Pula was reported at €2,732 per square meter. Although this figure is lower than €250,000, it highlights a competitive market that could push prices up for more spacious homes like three-bedroom houses.
These trends suggest that if you're considering buying a property in Pula, it's essential to be aware of the current market dynamics. The demand for housing is influencing prices, making it a potentially lucrative investment.
Sources: Immobiliare.it, Maris.hr, Properstar
13) Zagreb's residential property prices are surging with a 10% increase over the past year
In Zagreb, the average price increase for residential properties over the past year is 10%.
Let's dive into the real estate scene in Zagreb. In 2023, property prices in the city jumped by 11.9% compared to the previous year. Within Zagreb itself, the increase was slightly lower at 11.7%, showing a strong upward trend.
As we moved into 2024, the housing market continued its climb. Prices rose by 7.9% year-on-year, reaching €2,830 per square meter in the first half of the year. This steady rise highlights the growing demand for properties in the area.
Moreover, the house price index for Zagreb showed a 3.2% increase in the second quarter of 2023 compared to the first quarter. When compared to the same quarter in 2022, the increase was a notable 14.0%, reflecting a robust market.
Sources: Best Real Estate, Croatia Week, House Price Indices
14) Luxury villa prices in Dubrovnik are exceeding €1 million
In Dubrovnik, the average price of a luxury villa has surpassed €1 million.
Dubrovnik's real estate market is thriving, thanks to its booming tourism industry and rich cultural heritage. The city's historical charm and breathtaking coastal views make it a top choice for property investors. This allure draws both local and international buyers, pushing up demand for homes.
Properties in tourist hotspots like the Old Town and along the coast are especially sought after, which further inflates real estate prices. Foreign investors are particularly keen on these prime locations, often willing to pay a premium, which contributes to the rising costs.
With its unique blend of history and natural beauty, Dubrovnik offers a lifestyle that many find irresistible. This combination of factors has made it a magnet for those looking to invest in luxury real estate, leading to increased competition among buyers.
As a result, the market has seen a steady climb in property values, with luxury villas now commanding prices that reflect their desirability. The trend is clear: high demand and limited supply are driving prices upward.
For anyone considering a property purchase in Dubrovnik, understanding these dynamics is crucial. The city's appeal is undeniable, but it's important to be aware of the factors that are influencing the market. Investing in Dubrovnik means tapping into a vibrant and competitive real estate scene.
Sources: Investropa, Properstar, Global Property Guide, Expat in Croatia
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.