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Croatian property prices have risen dramatically over the past decade, with coastal cities seeing nearly 100% nominal price increases since 2016. While growth is moderating from the double-digit rates of 2024, prices are not expected to drop significantly in the next 2-3 years due to continued tourism demand and foreign buyer interest.
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Croatian property prices doubled between 2016-2024, with coastal cities leading the surge due to tourism and foreign investment.
Current forecasts predict continued but slower growth of 5-8% annually through 2027, making significant price drops unlikely.
| Market Factor | Current Status (2025) | Impact on Prices |
|---|---|---|
| Annual Price Growth | Slowing from 10-13% to 5-8% | Continued upward pressure |
| Foreign Buyers | 12,300 purchases in 2024 | Strong demand support |
| New Construction | 77,000-84,000 units underway | Limited supply relief |
| Tourism Impact | 75%+ Airbnb occupancy rates | Premium pricing in coastal areas |
| Rental Yields | 3.9-5.7% across regions | Investment appeal remains strong |
| Government Policy | 9,000 affordable units by 2030 | Minimal immediate impact |
| Sales Volume | Down 15% in H1 2025 | Affordability constraints emerging |
Fact-checked and reviewed by our local expert
Nikki Grey 🇬🇧
CEO & Director, Europe Properties
How much have Croatian property prices changed in the past 5 to 10 years?
Croatian property prices have experienced dramatic growth over the past decade, with prices rising cumulatively by about 96% nominally (51% inflation-adjusted) from 2016 to mid-2024.
The market showed distinct phases during this period. Between 2012 and 2015, prices were flat or declining as the country recovered from the global financial crisis. However, growth accelerated significantly following Croatia's EU accession and the subsequent tourism boom that transformed the coastal property market.
In the most recent period, annual growth reached approximately 10-13% along the coast in 2024, though this has moderated to 7-8% in early 2025. The coastal cities of Split, Dubrovnik, and Zadar have led this price surge, driven primarily by tourism demand and foreign buyer interest.
This represents one of the most significant property price increases in Europe over the past decade, with Croatia's coastal markets outperforming many established Mediterranean destinations during this period.
What are current property prices per square meter in coastal versus inland Croatian cities?
| City/Region | Apartment Price (€/m²) | House Price (€/m²) |
|---|---|---|
| Split (coastal) | €4,000 | €3,600 |
| Dubrovnik (coastal) | €3,600-€5,000 | €3,500 |
| Zadar (coastal) | €2,500-€3,000 | €1,730 |
| Zagreb (inland capital) | €2,830-€3,000 | €1,800 |
| Inland towns (average) | €1,000-€1,500 | €600-€900 |
How many new residential developments are currently under construction in Croatia?
Croatia's construction sector is experiencing significant activity, with new residential developments increasing by 10% annually since 2023.
As of early 2025, approximately 77,000 to 84,000 new residential units are under construction or have recently started construction across the country. This represents a substantial pipeline of new housing supply, though much of this development is concentrated in coastal areas and major urban centers.
Recent data shows building permits for 1,628 new apartments were issued in June 2025 alone, indicating continued strong development activity. However, this new supply is still insufficient to meet the growing demand, particularly in coastal tourist areas where properties are increasingly converted to short-term rentals.
The construction boom reflects both domestic demand and significant foreign investment in Croatian real estate, with developers targeting both residential buyers and the lucrative vacation rental market.
It's something we develop in our Croatia property pack.
What is the current annual growth rate of Croatian property prices?
Croatian property prices are currently growing at a moderating but still significant annual rate of 5-8% as of September 2025, down from the peak growth rates of 10-13% seen in 2024.
This deceleration reflects several market factors including affordability constraints, increased mortgage lending restrictions, and a natural cooling after several years of exceptional growth. Coastal cities continue to outperform inland areas, with Split and Dubrovnik maintaining stronger price momentum due to sustained tourism and foreign buyer demand.
The Croatian National Bank's measures to slow credit growth have contributed to this moderation, while rising construction costs and regulatory changes are also influencing price dynamics. Despite the slowdown, most forecasts predict continued positive annual growth of 5-8% for the next 2-3 years.
This growth rate remains well above the European Union average and reflects Croatia's ongoing appeal as an emerging Mediterranean property market with strong fundamentals.
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How do Croatian property prices compare with similar Mediterranean countries?
| Country | Average Price per m² (Coastal, 2025) | Annual Growth Rate (2024-2025) |
|---|---|---|
| Croatia | €2,800-€4,000 | 10% (slowing to 5-8%) |
| Greece | €2,200-€3,200 | 9-12% |
| Portugal | €3,500-€5,700 | 18% |
| Spain (coastal avg) | €2,800-€4,500 | 8-11% |
| Italy (coastal avg) | €3,200-€5,000 | 5-7% |
What do banks and real estate agencies forecast for Croatian property prices in the next 2-3 years?
Most Croatian banks and real estate agencies predict moderate continued growth through 2027, with coastal regions and new developments expected to perform best in their forecasts.
Leading Croatian financial institutions forecast annual price increases of 5-8% for 2025-2027, representing a normalization from the exceptional growth rates of recent years. Real estate agencies emphasize that coastal properties will likely maintain premium pricing due to sustained tourism demand and limited developable land.
However, affordability concerns are becoming increasingly prominent in forecasts, with several agencies predicting that transaction volumes may decline as prices and interest rates continue to rise. This could create a two-tier market where premium coastal properties maintain strong demand while inland and mid-market properties face softer conditions.
No major forecasting institution predicts significant price drops, instead expecting a gradual moderation in growth rates as the market matures and regulatory measures take effect.
How is Airbnb demand affecting Croatian property values in tourist areas?
Short-term rental demand through platforms like Airbnb has created significant upward pressure on Croatian property values, particularly in coastal tourist hotspots where properties are increasingly converted to vacation rentals.
The phenomenon of "apartmentization" has become widespread along the Croatian coast, with property owners converting long-term residential units to short-term vacation lets due to higher returns. Peak season occupancy rates exceed 75% in major tourist destinations like Split, Dubrovnik, and the islands.
This trend has created a dual impact: driving both purchase prices higher as investors compete for properties with rental potential, and reducing available long-term housing stock for residents. Dynamic pricing in the vacation rental market has pushed gross rental yields above traditional long-term rental returns.
Tourist areas now command premium prices specifically because of their short-term rental potential, with properties near the sea or historic centers selling at significant premiums over comparable inland properties without tourism appeal.
It's something we develop in our Croatia property pack.
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 are current rental yields in Croatian coastal and inland areas?
Croatian rental yields vary significantly between coastal and inland regions, with gross rental yields averaging 3.9-5.0% in coastal cities and reaching up to 5.7% in inland towns as of September 2025.
Split and Dubrovnik, the premier coastal destinations, typically generate gross rental yields of 3.9-5.0%, reflecting their high property prices but strong rental demand. Zagreb, as the capital, maintains consistent yields around 4.8-5.0% due to stable employment and university student demand.
Inland towns achieve higher percentage yields of 5.2-5.7% primarily due to lower purchase prices, though these areas attract less rental demand and may experience longer vacancy periods. The yield differential reflects the trade-off between capital appreciation potential in coastal areas versus immediate cash flow returns inland.
Properties with short-term rental potential in tourist areas often generate higher actual returns during peak season, though this comes with increased management requirements and seasonal variability in income.
How many foreign buyers purchased Croatian property in the past year?
Foreign buyers purchased 12,300 properties in Croatia during 2024, representing an increase from the previous year and accounting for approximately 7-9% of all property transactions in the country.
Germans, Slovenians, Austrians, and Czechs constitute the main foreign buyer groups, with most purchases concentrated along the Croatian coast rather than inland areas. This foreign demand has become a significant market factor, particularly in premium coastal locations where international buyers compete for limited inventory.
The steady increase in foreign purchases reflects Croatia's growing reputation as an accessible Mediterranean destination with EU membership benefits, relatively affordable prices compared to Western European coastal markets, and strong tourism fundamentals.
Foreign buyer activity has contributed to sustained demand pressure, especially in coastal cities where international buyers often purchase properties for vacation use or investment purposes, further supporting price stability and growth.
What are current mortgage interest rate trends and their impact on affordability?
Croatian mortgage lending remains stable with steady rates and lending volumes, though the Croatian National Bank has introduced measures to slow credit growth, creating mild constraints on affordability in the market.
Interest rates have remained relatively stable, but the combination of rising property prices and new lending restrictions has begun to impact buyer affordability. The National Bank's macroprudential measures aim to prevent excessive household debt accumulation and potential market overheating.
Real estate agencies forecast that affordability constraints will become more significant in 2025-2027, potentially limiting local buying power and creating a more pronounced divide between foreign cash buyers and domestic mortgage-dependent purchasers.
These lending conditions are expected to contribute to the moderation in price growth rates, as fewer domestic buyers qualify for mortgages at current price levels, though cash buyers and foreign purchasers remain less affected by these constraints.
What government policies could influence Croatian property prices?
The Croatian government has announced plans for 9,000 new affordable apartments by 2030 under the National Housing Plan, though this represents a relatively modest intervention given current market demand levels.
New regulations introduced in 2025 aim to improve market transparency and housing supply, but no large new subsidies or significant tax cuts have been implemented yet. The government's approach has been relatively market-friendly, focusing on increasing supply rather than demand-side interventions.
Future policy discussions include potential restrictions on short-term rentals in historic city centers and measures to preserve affordable housing for residents, though specific implementation timelines remain unclear.
The 9,000 affordable housing units planned represent less than 15% of current annual housing demand, suggesting limited immediate impact on overall market pricing, particularly in the coastal areas where demand pressure is strongest.
It's something we develop in our Croatia property pack.
How quickly are Croatian properties selling compared to previous years?
Croatian property sales volume fell by 15% in the first half of 2025 compared to the same period in 2024, indicating that rising prices and affordability constraints are beginning to curb market activity.
Properties in prime coastal areas still sell quickly, often within weeks during peak tourist season, as foreign buyers and investors continue to compete for limited coastal inventory. However, transaction times for inland properties and mid-market segments are lengthening as buyers become more price-sensitive.
This bifurcation reflects a maturing market where the most desirable coastal properties maintain strong liquidity while other segments experience softer demand conditions. The reduced sales volume suggests the market is transitioning from the rapid growth phase to a more sustainable pace.
Despite slower transaction volumes, asking prices have remained firm, indicating seller confidence and suggesting that any market adjustment will likely come through longer selling times rather than significant price reductions.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Based on current market conditions and forecasts, waiting for Croatian property prices to drop significantly appears unlikely to be a successful strategy for the next 2-3 years.
While price growth is moderating from the exceptional rates of 2024, continued tourism demand, foreign buyer interest, and limited coastal supply suggest prices will continue rising, albeit at a slower pace.
Sources
- Global Property Guide - Croatia Price History
- InvestRopa - Croatia Price Forecasts
- AMAN Alliance - Croatia Real Estate Analysis
- Connecting Region - Foreign Buyers Croatia
- PriceLabs - Croatia Vacation Rental Trends
- Global Property Guide - Croatia Rental Yields
- Croatia Real Estate Insight - 2025 Guide
- Airbtics - Dubrovnik Airbnb Revenue
- Croatia Real Estate Insight - Tourism Impact 2025
- Eulerpool - Croatia Housing Price Index