19 strong trends for 2025 in the Croatia property market

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 property market? Curious about the emerging trends that could shape your investment decisions? Want to know what factors will drive property values in 2025?

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) Croatia's property prices will rise steadily as the market stabilizes after the pandemic

Croatia's property market is experiencing moderate growth as it finds its footing after the pandemic.

Since 2021, there's been a steady uptick in property transactions, with 2023 seeing a notable increase compared to the previous year. This rise in activity suggests a growing confidence among buyers and sellers alike.

Foreign investors are also showing more interest in Croatia. In 2023, several international companies poured money into large-scale projects in cities like Zagreb and Split, making the market even more appealing.

The Croatian government is doing its part to keep the momentum going. They've rolled out tax breaks and subsidies to entice both local and foreign investors, aiming to stimulate new construction and development.

Infrastructure improvements are another piece of the puzzle. With expanded airports and highways, getting around is easier, which naturally draws more interest from potential buyers and investors.

Sources: Croatian Bureau of Statistics (DZS), Croatian Chamber of Commerce, Croatian Government, Infrastructure Development Agency of Croatia

2) Foreign investors will increasingly target Zagreb for long-term real estate investments

Foreign investors are eyeing Zagreb for long-term investments, and it's easy to see why.

The city's real estate market is on the rise, with property prices jumping by 13.99% in 2023. This surge indicates a strong demand and a promising potential for capital growth. Investors are drawn to the idea of their property values climbing steadily over time.

When it comes to rental income, Zagreb doesn't disappoint. The city offers average gross rental yields of 4.59%, with some areas even reaching up to 6.3%. This makes it a lucrative spot for those seeking consistent rental returns. Plus, ongoing infrastructure projects, though not detailed, are known to boost property values and attract more investors.

Zagreb is not just about numbers; it's a vibrant business and cultural hub. The city saw a 174% increase in tourist arrivals in January 2022, along with a 133% rise in overnight stays compared to the previous year. This influx of visitors energizes the local economy and opens up opportunities in hospitality and related sectors.

With its growing reputation, Zagreb is becoming a magnet for both tourists and business travelers. This trend is a clear signal of a lively market, ripe for investment. The city's appeal is only set to grow as more people discover its charm and potential.

Sources: Global Property Guide, CEIC Data, Total Croatia News

Everything you need to know is included in our Real Estate Pack for Croatia

3) Virtual property tours will dominate enabling international buyers to invest easily

Virtual property tours are revolutionizing the real estate market, especially for international buyers.

In recent years, particularly in 2023 and 2024, we've seen a surge in the use of virtual tour technology. Listings featuring these tours received 87% more views, and potential buyers spent 5-10 times longer on these sites compared to those without. This shift is making it easier for international buyers to explore properties from afar.

Take Croatia, for example, where foreign buyers snapped up 12,300 properties in 2023 alone, mostly along the stunning coastline. The demand for virtual tours is clear, with 67% of home buyers wanting a virtual tour when checking out a listing, and half of them preferring it over just photos.

Thanks to advancements in virtual reality (VR), augmented reality (AR), and 3D imaging, real estate professionals can now reach a broader audience. These technologies offer detailed property previews, speeding up sales and helping buyers make decisions faster. In Croatia, where digital literacy is on the rise, this tech is opening new doors for international sales.

With VR, AR, and 3D modeling, the global reach of real estate is expanding, making it easier for international buyers to invest. This is particularly relevant in Croatia, where the digital landscape is evolving, and more buyers are tech-savvy.

Sources: PhotoUp, Connecting Region, LandVault

4) Rural property prices will drop as urbanization grows

In Croatia, more people are moving to cities like Zagreb and Split.

Back in 2023, young people flocked to urban centers for better jobs and a vibrant lifestyle. This shift means fewer folks are eyeing rural homes, nudging property prices down in those areas.

By 2024, real estate reports showed a clear dip in rural property demand. Varaždin County, for instance, saw a 4.9% drop in house prices, the biggest fall among northern Croatian counties, hinting that rural spots are losing their charm compared to lively cities.

Surveys reveal that younger Croatians favor city life for its job prospects and cultural buzz. This urban preference further dampens interest in rural properties, pushing their prices down.

Economic reports highlight that job growth is booming in cities. Zagreb, for example, is seeing major investments in infrastructure, like renewable energy and public transport, drawing even more people to urban areas and away from the countryside.

Sources: Croatia Week, IMF eLibrary, EIB Press Release

5) Short-term rental yields will rise in tourist hotspots like Dubrovnik and Split

In 2023 and 2024, tourist numbers surged in Dubrovnik and Split, drawing more visitors from the UK, Croatia, and Germany.

Dubrovnik-Neretva County saw a 3% increase in tourists in August 2024 compared to the previous year, highlighting its growing appeal. This trend is particularly noticeable in Split, where the demand for short-term rentals is booming.

In Split, properties are being booked for 266 nights a year, with a strong occupancy rate of 73%. This high demand is evident in the rising number of Airbnb listings, which hit 6,939 by September 2024, showing tourists' preference for short-term stays.

The average daily rate for these rentals in Split is €105, reflecting the destination's popularity and allowing property owners to charge more. Tourists are leaving positive reviews, which boosts the attractiveness of these rentals and increases yields.

With such high occupancy and favorable reviews, short-term rental yields are set to rise in these tourist-heavy areas. Dubrovnik and Split are becoming hotspots for property investors looking to capitalize on the tourism boom.

Sources: The Dubrovnik Times, Airbtics, Ministry of Tourism

Get fresh and reliable information about the market in Croatia

Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.

Get the guide

6) Coastal property prices in Croatia will rise faster than inland areas

In Croatia, coastal property prices have surged in recent years.

Take Istria, for instance, where from 2020 to 2023, the average price per square meter jumped by 36%, reaching €3,150. This isn't just an Istrian phenomenon; Central and Southern Dalmatia have also seen increases of 25% and 15%, respectively. The allure of the Adriatic coast is undeniable, and it's not just the locals who are noticing.

Vacation homes and rental properties are hot commodities, largely due to the influx of tourists. In the first half of 2024, the Adriatic coast recorded 25.8 million overnight stays, a 2% increase. Both domestic and international visitors are eager to pay extra for those stunning sea views, making these properties even more desirable.

The Croatian government is playing its part too, pouring money into coastal infrastructure and amenities. The Minister of Tourism and Sport has been vocal about securing record funds from European sources and the state budget, which is expected to further enhance the appeal of these regions. This investment is a big deal, as it not only boosts tourism but also drives up real estate prices.

For those considering a property purchase, it's worth noting that coastal regions are experiencing a higher rate of price increase compared to inland areas. The combination of tourist demand and government investment is creating a perfect storm for rising property values along the coast.

So, if you're eyeing a slice of Croatian paradise, keep in mind that the coastal areas are where the action is. With the ongoing developments and the ever-growing tourist numbers, these regions are set to remain in high demand.

Sources: Panorama Scouting, Croatia Week

7) Foreign buyers will target Croatia's coastal properties for vacation homes more aggressively

Foreign buyers are increasingly eyeing Croatia's coastal properties for vacation homes.

In the past four years, over 40,000 properties have been snapped up by foreign buyers, with a big chunk of these purchases happening along the coast. Even though there was a 25% drop in foreign property buys in 2023, the interest in coastal properties remains strong. This shows that the allure of Croatia's coast is still very much alive.

Luxury properties like villas and seaside apartments are in high demand, especially in hotspots like Dubrovnik, Split, and Istria. These areas are famous for their stunning coastal beauty and vibrant lifestyle, often featured in travel magazines and all over social media. This kind of exposure only adds to their charm and desirability.

With Croatia joining the Eurozone in 2023, buying property has become easier for Europeans. This move has not only simplified transactions but also boosted the country's economic stability, making it an even more attractive spot for vacation homes. Plus, when you compare property prices to those in Western Europe, Croatia offers a more affordable option for foreign investors.

For those looking to invest in a vacation home, Croatia's coastal regions offer a unique blend of affordability, beauty, and convenience. The combination of economic stability and natural allure makes it a top choice for many.

Sources: Connecting Region, Imovine.hr, The Dubrovnik Times

8) Rents in rural Croatia will drop as people keep moving to cities

In Croatia, more people are moving from rural to urban areas, especially in 2023 and 2024.

Regions like Vukovar-Srijem, Osijek-Baranja, and Slavonski Brod-Posavina are seeing a population drop because of this shift. Meanwhile, urban areas such as Zagreb, Istria, and Split-Dalmatia are booming with new residents. This migration is largely driven by the search for better jobs and education.

In cities like Zagreb, job opportunities are plentiful, making them attractive to younger folks. This has led to a surge in housing demand, pushing rental prices up. On the flip side, rural areas aren't experiencing the same economic growth, so rental prices there are stable or even dropping.

Rural landlords are feeling the pinch, often struggling to find tenants. The aging population and lack of young people in these areas mean less demand for rentals. This situation is backed by real estate market analyses and surveys.

Government and NGO reports highlight urban infrastructure development, which further fuels the urban migration trend. This focus leaves rural areas with less investment and growth potential, reinforcing the migration pattern.

Sources: Croatian Bureau of Statistics, Croatian Academic Research, IMF eLibrary

Everything you need to know is included in our Property Pack for Croatia

9) International students will drive up rental demand in university cities in Croatia

The influx of international students will boost demand for rental properties in university cities.

In 2022, the number of foreign students at Croatian universities jumped by 20%, reaching 1,715. This surge means more students are on the hunt for places to live during their studies, especially in bustling university towns.

Many of these students are flocking to major cities like Split, Rijeka, and Zagreb, as noted by the Ministry of Science and Education. This concentration in specific areas naturally spikes the demand for rentals, making these cities hotspots for property investors.

International students often lean towards renting rather than buying, given their temporary stay. This preference for flexible housing options further fuels the rental market, as they seek convenient and adaptable living arrangements.

For those considering property investment, understanding these trends is crucial. University cities are becoming increasingly attractive for rental property investments, thanks to the steady stream of international students.

With the right insights, investors can tap into this growing demand, offering accommodations that cater to the needs of these students. Properties near universities or with easy access to public transport are particularly appealing.

Sources: Croatia Week, Trade.gov

10) Rents in coastal Croatia will surge due to high tourist demand

Coastal areas in Croatia are seeing a significant rise in rents due to their growing popularity among tourists.

In 2023, Croatia experienced a 9% increase in tourist arrivals, and this trend continued into 2024 with a 21% rise in foreign tourist arrivals in May. This surge in visitors is driving up demand for accommodations, especially in hotspots like Istria and Split-Dalmatia County. These areas often see full bookings during peak seasons, making it a challenge to find available properties.

Platforms like Airbnb are booming, with more listings popping up to meet the demand. The Croatian government is also playing a role by actively promoting coastal tourism, which is further boosting the popularity of these regions. Infrastructure improvements have made these areas more accessible, attracting even more visitors.

Investors are keen to jump into the thriving real estate market, eager to capitalize on the booming tourism industry. The increased demand for short-term rentals is naturally pushing up prices, making it a lucrative opportunity for property owners.

With the government’s push and the ongoing infrastructure developments, coastal areas are becoming even more attractive to tourists. This means that the trend of rising rents is likely to continue, offering potential investors a promising outlook.

Sources: Schengen News, Travel and Tour World, Croatia Week

11) Short-term rental investments will surge on the Dalmatian coast as tourism booms

The Dalmatian coast is buzzing with increased short-term rental investments thanks to a surge in tourism.

In the first half of 2024, Croatia welcomed 7.2 million guests, a 6% jump from the previous year. This influx of visitors is driving up the demand for places to stay, making short-term rentals a hot ticket for investors. Rijeka, a charming city on the coast, is a prime example of this trend. With a 60% occupancy rate for short-term rentals, it's clear that tourists are flocking here.

Rijeka's popularity is also reflected in its rental prices. The average daily rate is €85, and each rental pulls in an annual revenue of €18,870. This spells out strong profits for those investing in the area. Notably, Rijeka is among the top Airbnb markets in Croatia, boasting 1,251 listings, which underscores its appeal for short-term rental investments.

The Croatian government is playing its part by actively promoting tourism development. They're improving infrastructure and offering incentives for tourism-related investments, making the Dalmatian coast even more attractive to investors. Property prices are climbing in coastal hotspots like Dubrovnik and Split, with dwelling prices on the Adriatic Coast rising by 12.76% in Q2 2023.

These rising property prices signal a growing interest in investment, as more people look to capitalize on the booming tourism sector. The government's efforts, combined with the natural allure of the Dalmatian coast, are creating a perfect storm for short-term rental investments.

Sources: Mint.gov.hr, Airbtics, Global Property Guide, Croatia Week

Don't buy the wrong property, in the wrong area

Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.

Get the guide

12) Rental yields in inland Croatia will drop due to falling demand

Inland regions in Croatia are facing a decline in rental yields due to lower demand.

One big reason is the decreasing population in these areas. Over the past few years, especially in 2023 and 2024, some inland regions have seen a population drop of over 20%. This means fewer people are around to rent properties, which naturally lowers demand.

Adding to this, many people are moving towards the coast. Coastal areas are more appealing because they offer better economic opportunities and living standards. This trend was particularly noticeable in 2023, as more residents flocked to the coast, leaving inland areas with even less demand for rentals.

The tourism industry also plays a role here. It's a major driver of rental demand, but it's mostly focused along the Adriatic coast. Inland areas just don't get as many tourists, which means fewer short-term rental opportunities. This lack of tourist traffic further reduces the need for rental properties inland.

Economic growth is another factor. Reports from recent years show that inland regions are experiencing slower economic growth compared to coastal areas. This slower growth means less investment and, consequently, less demand for rentals.

All these factors combined paint a clear picture: inland regions are struggling with rental demand, while the coast continues to thrive. Investors are naturally more drawn to the coast, where the potential for returns is higher.

Sources: OEGFE, The Dubrovnik Times, IMF eLibrary

13) Coastal rental yields will rise with tourism's rebound

Tourism in coastal areas is booming, with Croatia seeing a surge in visitors.

In 2023, Croatia welcomed 16.855 million foreign tourists, a 10% jump from the previous year. This growth is especially noticeable in coastal regions, where October 2024 alone saw a 10.2% rise in foreign tourist arrivals. As more tourists flock to these stunning destinations, the demand for accommodations naturally increases.

Short-term rental properties are in high demand, with occupancy rates reflecting trends seen in Zagreb, where listings are booked for 234 nights a year. This high demand allows property owners to charge premium rates, boosting rental yields. Coastal areas are particularly attractive, as they offer unique experiences and breathtaking views.

In popular coastal cities like Split and Dubrovnik, the average daily rates for vacation rentals are expected to surpass those in Zagreb. For example, a three-bedroom apartment in these areas could command rates of over €107 per night. This makes coastal rentals a lucrative investment opportunity for property owners looking to maximize their income.

With tourism rebounding, rental yields in coastal areas are set to increase. The combination of high demand and premium rates creates a perfect storm for property investors. Coastal properties not only offer financial benefits but also the chance to own a piece of paradise.

Investing in coastal real estate is not just about the numbers; it's about being part of a vibrant and growing community. As tourism continues to thrive, property owners can expect to see their investments grow alongside the influx of visitors.

Sources: Travel and Tour World, Airbtics, Croatia Week

14) Zagreb rents will surge with more international students and professionals moving in

Zagreb is becoming a hotspot for international students and professionals.

With its growing reputation as a tech and innovation hub, Zagreb is attracting multinational companies, which in turn draw in more professionals looking for job opportunities. This influx has led to a surge in housing demand, causing rental prices to climb.

In 2022, Zagreb saw a 20% increase in international student enrollment, as many are drawn to the city's educational offerings and English-language programs. This rise in student numbers is adding pressure to the rental market, especially near universities.

The city's ongoing improvements in infrastructure and public transport are making Zagreb even more appealing. These enhancements have boosted the quality of life, making it a preferred destination for both students and professionals, which in turn is intensifying the competition for rental properties.

As Zagreb continues to develop, the demand for housing is expected to grow, leading to further increases in rental prices. The city's appeal is not just about job opportunities but also about the lifestyle it offers, which is becoming increasingly attractive to a global audience.

With more international students and professionals choosing Zagreb, the rental market is feeling the pressure. This trend is likely to continue, as the city remains a desirable place to live and work, pushing rental prices even higher.

Sources: Croatia Week, Best Real Estate, Total Croatia News

Everything you need to know is included in our Pack for Croatia

15) Rental demand in Split will surge as digital nomads flock to the city

The demand for rental properties in Split is on the rise as the city gains popularity among digital nomads.

Every month, around 10,000 digital nomads find their way to Split, drawn by its vibrant atmosphere and welcoming community. This influx is creating a buzz in the rental market, as these remote workers seek comfortable places to stay. The city has responded by expanding its coworking spaces and remote work-friendly cafes, making it a hub for those who work from anywhere.

Split's appeal is further enhanced by the Croatian government's digital nomad visa program, which allows remote workers to stay for up to a year. This initiative has made it easier for digital nomads to settle in and enjoy the city's coastal charm and rich history. The program is a game-changer, attracting a steady stream of international talent looking for a blend of work and leisure.

Platforms like Airbnb have seen a notable increase in short-term rental listings in Split, driven by the demand from both tourists and digital nomads. This trend is reshaping the local real estate market, offering opportunities for property owners and investors. The city's infrastructure is evolving to meet the needs of this new wave of residents, making it an exciting time for the rental market.

Surveys from platforms like Nomad List highlight Split as a top global destination for digital nomads. Its combination of scenic beauty, historical sites, and modern amenities makes it a standout choice. The city's ability to cater to the lifestyle of remote workers is a key factor in its growing popularity.

As Split continues to attract digital nomads, the local economy benefits from their presence. These remote workers contribute to the community, spending on local services and participating in cultural events. The city's transformation into a digital nomad hotspot is a testament to its adaptability and appeal.

Sources: N1 Info, Migrun Tech, Connect Houses, Connect PLS, Nomads Embassy

16) Families will flock to Zagreb's suburbs for more space and better value

Zagreb's suburbs are becoming a hot spot for families looking for more space and better value.

Central Zagreb's property prices have skyrocketed, with the average price per square meter hitting 3,223 euros in 2023. This steep cost is pushing families to explore suburban options where they can stretch their budgets further.

The pandemic has shifted priorities, and now there's a noticeable uptick in demand for larger homes. In the first half of 2023, new dwelling sales in Croatia jumped by 25.9%, showing that families are keen on more spacious living. Suburbs are stepping up with better infrastructure, like new schools and hospitals, making them even more attractive.

Take Sesvete, for example, where the average price per square meter is 2,194 euros. That's a significant saving compared to the city center, drawing more buyers to areas like Velika Gorica and Sveta Nedelja. Here, families find not just affordability but also a community vibe that's hard to beat.

Suburban living isn't just about cost; it's about lifestyle. With improved amenities and a focus on family-friendly environments, these areas are becoming the go-to choice for those wanting more bang for their buck.

Sources: Expat in Croatia, Best Real Estate, Balcani Caucaso, Global Property Guide

17) Young professionals will keep moving to cities boosting demand for urban apartments

Young professionals are flocking to urban areas, and this trend shows no signs of slowing down.

In Croatia, 20.5% of immigrants chose Zagreb as their new home in 2023, making it a top destination. Following closely are the County of Split-Dalmatia and the County of Istria, highlighting a clear preference for city life. This shift is largely driven by the vibrant job market and lifestyle that cities offer.

The age group most likely to move within Croatia is between 20 to 39 years, which includes many young professionals. This group made up 44.6% of internal migrants, with a slightly higher percentage of women. Cities are attractive to this demographic because they offer better job opportunities and a dynamic lifestyle.

Universities, like the University of Zagreb, are magnets for young people. With about 40% of Croatia's students enrolled there, the city is a hub for young talent. As these students graduate and enter the workforce, they often seek city apartments, boosting demand in the real estate market.

The real estate market in cities such as Zagreb and Split is experiencing a surge in demand for rental properties. This is driven by factors like excess liquidity in the banking system and government home subsidy programs, which make urban living more accessible and appealing.

Sources: Croatian Bureau of Statistics, OECD iLibrary, European Commission, Croatian Bureau of Statistics

Make a profitable investment in Croatia

Better information leads to better decisions. Save time and money. Download our guide.

Download Now

18) Waterfront properties will soar in demand for their stunning views and strong investment potential

Waterfront properties in Croatia are gaining popularity thanks to their stunning views and promising investment potential.

In recent years, especially in 2023 and 2024, there's been a noticeable uptick in demand for coastal homes. Sales of new dwellings in Croatia jumped by 25.9% in the first half of 2023, with many of these transactions happening in coastal hotspots and vacation areas.

Prices in sought-after waterfront locations have surged. In places like Split, Opatija, and Dubrovnik, property values have climbed significantly, with Split standing out as one of the priciest spots. This trend shows that buyers are eager to pay a premium for homes with breathtaking sea views and prime locations.

Waterfront properties are also appealing because of their potential for higher rental returns. The demand for vacation rentals in coastal towns is booming, fueled by a growing number of tourists flocking to Croatia. This has led to increased rental yields for waterfront homes, making them a smart choice for investors.

The charm of Croatia's coastline is no secret, thanks to extensive media coverage that draws both local and international buyers. Social media platforms frequently highlight the coastline's beauty, adding to its allure. This exposure, along with the tourism boom, has played a big role in the rising interest in waterfront properties.

Sources: Global Property Guide, Panorama Scouting, Investropa

19) Dubrovnik attracts high-end buyers while nearby smaller towns grow appealing for their lower prices

Dubrovnik remains a top choice for luxury property buyers, and this isn't changing anytime soon.

In 2023, the average price for a new apartment in Dubrovnik was around 4,500 euros per square meter, slightly adjusting to 4,151 euros in 2024. Despite these minor shifts, expect a price increase of 3% to 7% in 2025, driven by high demand and limited supply. The city's allure is fueled by its booming tourism, luxury appeal, and ongoing infrastructure upgrades.

On the other hand, smaller towns like Rijeka and Zadar are catching the eye of buyers due to their more affordable property prices. In 2024, Rijeka's apartments averaged 1,793 euros per square meter, while Zadar's were at 2,472 euros. These towns have seen a notable rise in real estate interest, with prices jumping by 16% in Rijeka and 5.86% in Zadar over the past two years, thanks to improved transportation and public amenities.

Media buzz has spotlighted the charm and affordability of these smaller towns, making them attractive to those seeking a balance between cost and quality of life. Surveys show a growing interest in affordable coastal properties, with buyers shifting focus from high-end spots like Dubrovnik to these emerging areas. The cost of living in Dubrovnik is significantly higher, making these smaller towns appealing for those wanting affordability without sacrificing lifestyle quality.

For those considering a move, it's worth noting that infrastructure improvements in these smaller towns are making them more accessible and livable. Enhanced transportation links and public amenities are drawing more buyers, offering a compelling alternative to Dubrovnik's high prices.

As Dubrovnik continues to attract high-end buyers, expect nearby smaller towns to become increasingly appealing due to their lower prices and growing amenities.

Sources: Total Croatia News, Expat in Croatia, Connect Houses, Investropa

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.