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
Croatia's rental market in 2026 offers a mix of stable urban yields and seasonal coastal opportunities that reward investors who understand the local dynamics.
We constantly update this blog post to reflect the latest data and market shifts in Croatia's property sector.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Croatia.
Insights
- Croatia's gross rental yield sits around 4.6% in early 2026, which is slightly above the European average but still below what many investors consider "exciting" for a country with such high tourism traffic.
- The gap between gross and net yields in Croatia is typically 1 to 1.5 percentage points, mainly due to the new property tax introduced in January 2025 and recurring communal fees that apply even when units sit empty.
- Zagreb neighborhoods like Trešnjevka and Novi Zagreb often outperform coastal hotspots on yield because purchase prices remain reasonable while year-round renter demand stays consistent.
- Coastal properties in Croatia can look attractive on paper, but seasonality means landlords should budget for 2 to 3 months of vacancy annually unless they secure rare long-term tenants.
- Smaller apartments between 30 and 55 square meters tend to deliver the best yield per square meter in Croatian cities because rent does not drop proportionally with size.
- Croatia's officially reported "temporarily unoccupied dwellings" jumped by 43% in recent census data, which explains why vacancy buffers need to be higher than in most European markets.
- Premium coastal zones like Dubrovnik's Ploče or Split's Meje often yield below 4% gross because buyers pay for lifestyle and scarcity rather than cashflow.
- The Rijeka Gateway container terminal opening is expected to boost mid-market rental demand in practical Rijeka neighborhoods like Zamet and Trsat as logistics jobs increase.
What are the rental yields in Croatia as of 2026?
What's the average gross rental yield in Croatia as of 2026?
As of early 2026, the average gross rental yield in Croatia sits around 4.6%, which means landlords typically collect about 4.6% of their property's value in annual rent before any expenses.
Most residential properties in Croatia fall within a gross yield range of 4.3% to 4.9%, though you can find outliers both above and below depending on location and property type.
This puts Croatia roughly in line with European averages, slightly better than Western European capitals but below some Eastern European markets where prices have not caught up with rents yet.
The single biggest factor shaping Croatia's gross yields right now is the tension between rapidly rising purchase prices and rents that have grown more steadily, which keeps yields compressed in a mid-single-digit band.
What's the average net rental yield in Croatia as of 2026?
As of early 2026, the average net rental yield in Croatia lands around 3.4%, which is what landlords actually pocket after taxes, fees, and typical operating costs.
The difference between gross and net yields in Croatia typically runs between 1 and 1.5 percentage points, which is meaningful and often surprises first-time investors who only look at headline numbers.
The expense that cuts into Croatian landlords' returns most significantly is the combination of property tax (introduced January 2025) and local communal fees, which apply whether your unit is rented or sitting empty.
Most standard investment properties in Croatia deliver net yields between 3.1% and 3.8%, with the range reflecting differences in vacancy, maintenance needs, and whether you self-manage or pay for professional help.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Croatia.
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.
What yield is considered "good" in Croatia in 2026?
A gross rental yield of 5% or higher is generally considered "good" by local investors in Croatia, while anything above 4% net is seen as genuinely strong performance.
The threshold that separates average properties from high performers in Croatia typically sits around that 5% gross mark, meaning properties below this are common while those above require either smart buying or accepting higher risk locations.
How much do yields vary by neighborhood in Croatia as of 2026?
As of early 2026, the spread in gross rental yields between the highest and lowest yielding neighborhoods in Croatia can reach 2 to 3 percentage points, and sometimes even more when comparing practical urban areas to premium coastal zones.
The highest yields in Croatia typically show up in "everyday living" neighborhoods where purchase prices stay reasonable and year-round demand is strong, such as Trešnjevka, Dubrava, and parts of Novi Zagreb in the capital, or Gripe and Spinut in Split.
The lowest yields cluster in prestige and seafront locations where buyers pay for lifestyle and scarcity rather than cashflow, including Donji Grad in Zagreb, Meje in Split, Ploče in Dubrovnik, and prime Istrian coastal spots.
The main reason yields vary so dramatically across Croatian neighborhoods is that purchase prices in trophy locations are driven by international buyers and tourism potential, while rents are ultimately capped by what local residents and long-term tenants can afford.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Croatia.
How much do yields vary by property type in Croatia as of 2026?
As of early 2026, gross rental yields in Croatia range from around 3.5% for large coastal villas to above 5.5% for well-located small apartments, with most property types falling somewhere in between.
Smaller apartments, especially studios and one-bedrooms in major Croatian cities, currently deliver the highest average gross yields because rent per square meter stays high while purchase prices remain accessible.
Large family homes and coastal villas typically deliver the lowest yields in Croatia because the capital required is substantial and long-term rents simply do not scale proportionally with property size.
The key reason yields differ by property type in Croatia is that tenant demand is deepest for affordable, well-located units, while the buyer pool for large properties is often driven by lifestyle rather than investment logic.
By the way, you might want to read the following:
What's the typical vacancy rate in Croatia as of 2026?
As of early 2026, the stabilized rental vacancy rate in Croatia runs around 4% to 7% in Zagreb for well-priced units, while coastal markets like Split or Zadar can see vacancy between 6% and 10% due to seasonal demand patterns.
Vacancy rates across Croatian neighborhoods can swing dramatically, from under 5% in high-demand urban areas near universities and hospitals to above 15% in purely seasonal coastal locations during winter months.
The main factor driving vacancy rates in Croatia is seasonality, as a huge portion of the country's housing stock is used for second homes or tourism rather than year-round residential renting.
Croatia's vacancy situation is unusual compared to most European countries because official census data shows temporarily unoccupied dwellings increased by 43% in recent years, reflecting the country's heavy second-home and tourism-oriented housing market.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Croatia.
What's the rent-to-price ratio in Croatia as of 2026?
As of early 2026, the average rent-to-price ratio in Croatia sits around 0.38% monthly, which translates to about 4.6% annually and is essentially the same concept as the gross rental yield.
A rent-to-price ratio above 0.42% monthly (or 5% annually) is generally considered favorable for buy-to-let investors in Croatia, and this threshold directly corresponds to what the market considers a "good" gross yield.
Croatia's rent-to-price ratio is comparable to Southern European markets like Portugal or Spain's coastal regions, slightly better than prime Western European cities but below emerging Eastern European capitals where prices have not yet caught up with rents.
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.
Which neighborhoods and micro-areas in Croatia give the best yields as of 2026?
Where are the highest-yield areas in Croatia as of 2026?
As of early 2026, the highest-yield neighborhoods in Croatia include Trešnjevka and parts of Novi Zagreb in the capital, Gripe and Spinut in Split, and Zamet and Trsat in Rijeka, where practical living meets consistent renter demand.
These top-performing areas in Croatia typically deliver gross rental yields in the 5% to 6.5% range, well above the national average, because purchase prices remain accessible while rents stay steady year-round.
The main characteristic these high-yield Croatian neighborhoods share is that they attract year-round renters, including students, young professionals, and service workers, rather than depending on seasonal tourism or lifestyle buyers.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Croatia.
Where are the lowest-yield areas in Croatia as of 2026?
As of early 2026, the lowest-yield neighborhoods in Croatia include Donji Grad in Zagreb, Meje in Split, and Ploče in Dubrovnik, along with prime Istrian coastal locations and island properties.
These low-yield areas in Croatia typically deliver gross rental yields between 3% and 4%, sometimes even lower in ultra-premium waterfront positions where lifestyle value drives prices far above rental income potential.
The main reason yields are compressed in these Croatian locations is that purchase prices are set by international buyers, second-home demand, and tourism potential, while long-term residential rents are ultimately limited by what local incomes can support.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Croatia.
Which areas have the lowest vacancy in Croatia as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Croatia include Maksimir in Zagreb (near the university hospital), Trešnjevka, parts of Novi Zagreb along major transit corridors, and Trsat in Rijeka.
These low-vacancy Croatian neighborhoods typically see vacancy rates between 3% and 5%, meaning landlords rarely experience more than a few weeks per year without tenants.
The main demand driver keeping vacancy low in these areas is proximity to major employers, universities, hospitals, and reliable public transport, which creates a steady pool of tenants who need housing regardless of season.
The trade-off investors face when targeting these low-vacancy Croatian neighborhoods is that purchase prices tend to be higher and gross yields slightly lower than in riskier areas, so you are essentially paying for stability.
Which areas have the most renter demand in Croatia right now?
The neighborhoods currently experiencing the strongest renter demand in Croatia include Trešnjevka, Maksimir, and Jarun in Zagreb, Žnjan and Spinut in Split, and Trsat in Rijeka.
The renter profile driving most demand in these Croatian areas consists of young professionals, university students, hospital staff, and domestic relocations, all looking for practical, affordable housing with good transport links.
In these high-demand Croatian neighborhoods, well-priced rental listings typically get filled within one to two weeks, and desirable units in good condition often receive multiple inquiries within days of being posted.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Croatia.
Which upcoming projects could boost rents and rental yields in Croatia as of 2026?
As of early 2026, the top infrastructure projects expected to boost Croatian rents include Zagreb's new tram fleet delivery, Split's Žnjan Plateau redevelopment, and the Rijeka Gateway container terminal expansion.
The neighborhoods most likely to benefit from these projects include tram-served zones like Trešnjevka and Novi Zagreb in the capital, Žnjan and Trstenik in Split, and practical commuter areas like Zamet in Rijeka.
Investors might realistically expect rent increases of 5% to 15% in directly affected neighborhoods once these Croatian projects are fully operational, though the impact will be gradual rather than immediate.
You'll find our latest property market analysis about Croatia here.
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What property type should I buy for renting in Croatia as of 2026?
Between studios and larger units in Croatia, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments in Croatia outperform larger units on both rental yield and occupancy, making them the stronger choice for investors focused on cashflow.
Studios in Croatian cities typically yield between 5% and 6.5% gross (around 400 to 600 EUR or 420 to 630 USD monthly rent), while larger two or three-bedroom units often land closer to 4% to 5% gross despite higher absolute rents.
The main factor explaining this difference is that rent does not increase proportionally with size in Croatia, so smaller units capture more value per euro invested and attract a deeper pool of potential tenants.
One scenario where larger units might be the better Croatian investment is when targeting families or corporate relocations on longer leases, as these tenants offer more stability and are willing to pay a premium for space in practical neighborhoods.
What property types are in most demand in Croatia as of 2026?
As of early 2026, the most in-demand property type in Croatia is the well-located one or two-bedroom apartment in good condition with reasonable utility costs.
The top three property types by current tenant demand in Croatia are one-bedroom apartments, two-bedroom apartments, and studios, with detached houses attracting a smaller but stable niche of family renters.
The primary trend driving this demand pattern in Croatia is urbanization and household size shrinkage, as younger Croatians increasingly prefer compact, affordable units near jobs and amenities over larger family homes.
Large coastal villas and oversized apartments are currently underperforming in rental demand and will likely remain soft in Croatia because the tenant pool is simply too narrow and seasonal for consistent occupancy.
What unit size has the best yield per m² in Croatia as of 2026?
As of early 2026, units between 30 and 55 square meters deliver the best gross rental yield per square meter in Croatian cities, hitting the sweet spot between livability and affordability.
For this optimal unit size in Croatia, investors can expect gross yields around 5% to 6% annually, which translates to roughly 10 to 14 EUR (or 10.50 to 14.70 USD) per square meter in monthly rent for well-located properties.
Smaller units under 30 square meters can feel cramped and limit the tenant pool, while larger units above 55 square meters require more capital and generate rents that do not scale proportionally, which is why the middle range performs best in Croatia.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Croatia.
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.
What costs cut my net yield in Croatia as of 2026?
What are typical property taxes and recurring local fees in Croatia as of 2026?
As of early 2026, the annual property tax for a typical rental apartment in Croatia varies by municipality but generally runs between 50 and 200 EUR (approximately 53 to 210 USD or 400 to 1,500 HRK equivalent) depending on location and property value.
Beyond property tax, Croatian landlords must also budget for komunalna naknada (the communal utility fee), which is calculated per square meter and typically adds another 100 to 300 EUR (105 to 315 USD) annually for a standard apartment in Zagreb.
Together, these taxes and local fees typically represent around 3% to 6% of gross rental income in Croatia, which is a meaningful bite that many foreign investors underestimate when calculating expected returns.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Croatia.
What insurance, maintenance, and annual repair costs should landlords budget in Croatia right now?
Annual landlord insurance for a typical rental property in Croatia costs between 100 and 300 EUR (approximately 105 to 315 USD), depending on coverage level, property value, and location.
Croatian landlords should budget around 0.8% to 1.5% of property value annually for apartments and 1.2% to 2% for houses, which covers routine maintenance, building reserve contributions, and minor repairs.
The repair expense that most commonly catches Croatian landlords off guard is plumbing and moisture damage, especially in older buildings and coastal properties where humidity and salt exposure accelerate wear.
In total, landlords in Croatia should realistically budget between 800 and 2,500 EUR (approximately 840 to 2,625 USD) annually for insurance, maintenance, and repairs combined on a standard rental apartment.
Which utilities do landlords typically pay, and what do they cost in Croatia right now?
In most long-term Croatian rentals, tenants pay their own utilities including electricity, gas, water, and internet, while landlords more commonly cover utilities only when offering furnished "all-in" packages for shorter stays or corporate tenants.
When landlords do cover utilities in Croatia, they should budget around 80 to 150 EUR (approximately 84 to 158 USD) monthly for a typical apartment, based on current tariff structures from Croatia's main electricity provider HEP Elektra.
What does full-service property management cost, including leasing, in Croatia as of 2026?
As of early 2026, full-service property management in Croatia typically costs between 8% and 12% of collected monthly rent, which translates to roughly 40 to 100 EUR (approximately 42 to 105 USD) per month on a standard apartment.
On top of ongoing management, Croatian property managers usually charge a tenant-placement or leasing fee equivalent to about one month's rent (300 to 700 EUR or 315 to 735 USD for typical units) each time they source a new tenant and handle contracts.
What's a realistic vacancy buffer in Croatia as of 2026?
As of early 2026, landlords in Croatia should set aside around 8% of annual rental income as a vacancy buffer in major cities, which increases to 15% to 25% in seasonal coastal markets where winter demand drops significantly.
In practical terms, Croatian landlords in Zagreb or Rijeka typically experience about 3 to 5 weeks of vacancy per year between tenants, while coastal property owners may face 6 to 12 weeks of empty time during the off-season.
Buying real estate in Croatia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Croatia, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Croatian Bureau of Statistics (DZS) | It's Croatia's official statistics office publishing the national house price index used by institutions across the country. | We used it to anchor where prices are headed into early 2026 and to avoid relying on ads-only price signals. We cross-checked it against international datasets to keep the story consistent. |
| BIS / FRED Residential Property Prices | It's a standardized international dataset compiled by the Bank for International Settlements and distributed by the St. Louis Fed. | We used it as an external cross-check on Croatia's price trend so we're not marking our own homework. We verified that local index movements match international reporting. |
| Eurostat HICP Rents via FRED | It's the EU's harmonized inflation measure for rents, making it comparable across countries. | We used it to validate that rent levels have been rising in a way that matches official inflation data. We kept our yield assumptions grounded in rent direction, not just listings noise. |
| Global Property Guide | It's a long-running property research publisher with a transparent yield method and a published dataset covering multiple countries. | We used it as the cleanest single snapshot of gross yields going into 2026, reporting Croatia at 4.42% in Q4 2025. We used its city examples to illustrate how yields differ inside Zagreb. |
| DZS Census Housing Release | It's an official census-based publication directly about housing occupancy, not opinions or estimates. | We used it to explain why vacancy in Croatia behaves differently than in many countries due to seasonal and second-home use. We framed coastal seasonality and the importance of vacancy buffers with this data. |
| Eurostat Housing in Europe 2025 | It's Eurostat's curated housing overview based on official EU data across member states. | We used it for context on tenure structure and affordability in Europe. We used it as a consistency check for the bigger picture of why Croatia's market behaves this way. |
| Croatian Tax Administration | It's the official tax authority explaining rules as they are applied in practice. | We used it to define the annual property tax introduced from January 2025 and how it's set locally. We built a realistic net-yield cost line using these official rules. |
| Narodne novine (Official Gazette) | It's the official publication of Croatian laws and amendments, serving as the final legal authority. | We used it to confirm the legal basis and wording around property taxation changes. We referenced it whenever secondary explanations differed from the official text. |
| PwC Tax Summaries | It's a major tax firm's structured summary, useful for checking how rules are typically applied in practice. | We used it to validate the practical treatment of rental income taxation like lump-sum expense deductions. We cross-checked official guidance to avoid misstating the mechanics. |
| Deloitte Croatia Tax Reform | It's a top-tier consultancy summarizing enacted legislative changes with professional review. | We used it to confirm the timing and scope of tax changes affecting landlords from January 2025. We used it as a cross-check on what changed in 2025. |
| City of Zagreb | It's the official city site explaining the formula for the recurring local communal fee. | We used it to include recurring local fees that many yield calculators forget. We kept net-yield estimates realistic for Zagreb-based rentals. |
| Zagreb Holding (ZGH) | It's the city-owned utility company giving user-facing clarifications on local fees. | We used it to confirm that the fee is due regardless of whether a unit is currently occupied. We justified why vacancy still costs money to Croatian landlords. |
| HEP Elektra | It's Croatia's national electricity supplier publishing official tariff tables. | We used it to ground utility-cost ranges when landlords cover any utilities. We avoided using random "average bill" blogs by going to the source. |
| KONČAR | It's an official manufacturer announcement tied to a real procurement and delivery contract. | We used it as a concrete pipeline indicator for areas served by upgraded transit in Zagreb. We supported the section on projects that can lift rental demand. |
| Port of Rijeka Authority | It's the port authority announcing a major dated infrastructure milestone. | We used it to support why parts of Rijeka can see stronger renter demand from logistics jobs. We used it as a credible "this is actually happening" project reference. |
| Office of the President (Žnjan) | It's an official government communication about a completed city-scale project in Split. | We used it to anchor a very specific local rent driver in Split's Žnjan and Trstenik zone. We showed how amenities and public realm upgrades can support rents. |
| Njuškalo | It's Croatia's dominant classifieds marketplace with deep listing volume across the country. | We used it only as a live market pulse for what's being asked and what's moving fast. We sensed neighborhood-level demand differences that official datasets don't publish. |
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