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Where are the best places to invest in Croatia right now? Is Dubrovnik still the top pick, or are cities like Split, Zadar, and Rijeka gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Croatia and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Zadar, a coastal town, is seeing a surge in interest due to its popularity as a tourist destination
The coastal town of Zadar is seeing a big jump in property values thanks to its rising fame as a tourist hotspot.
In 2023, property prices in Zadar shot up by 17.74% compared to the previous year. This isn't just a random spike; it's tied to the town's growing allure for tourists. More and more people are discovering Zadar, and it's becoming a must-visit spot on the Croatian coast.
Tourism is booming, with foreign tourist arrivals in Croatia climbing by 9.4% to 15.6 million in 2023. A good chunk of these visitors are likely making their way to Zadar, drawn by its charm and vibrant atmosphere. This surge in tourists is pushing up demand for short-term rentals, and you can see it in the rising number of Airbnb listings popping up in coastal areas.
Local authorities are also playing a part by investing in infrastructure and tourism facilities, which is making Zadar even more appealing. The town is getting a lot of media attention as an up-and-coming tourist destination, which is only adding to its allure. The number of new dwellings sold in the first half of 2023 jumped by 53.9%, showing just how hot the market is for holiday homes.
For those thinking about buying property, Zadar offers a mix of old-world charm and modern amenities. The town's cobblestone streets, historic sites, and stunning coastline are a big draw. Plus, with the local government's focus on improving facilities, it's a place that's only going to get better.
Investors are taking note, seeing Zadar as a promising spot for both short-term rentals and long-term property investments. The town's popularity isn't just a passing trend; it's backed by solid growth in tourism and infrastructure. With more tourists flocking to the area, the demand for properties is likely to keep rising.
Sources: Global Property Guide, Panorama Scouting, Expat in Croatia
2) Dubrovnik's Lapad area is in demand for its closeness to beaches and the Old Town, boosting property demand and prices
Dubrovnik's Lapad area is a hot spot for property buyers because of its proximity to stunning beaches and the historic Old Town.
With its prime location, Lapad has become a magnet for tourists and property seekers, leading to a significant rise in real estate prices. You can expect to pay anywhere from 3,500 to 5,000 euros per square meter, with some properties even hitting the 7,000 euro mark.
Looking ahead, property prices in Lapad are expected to climb by 3% to 7% in 2025 compared to 2024. This is largely due to the limited number of properties available, making it a competitive market for buyers.
Lapad's appeal is further boosted by its high rental yields, thanks to strong tourist demand. The area enjoys a median occupancy rate of 81% for short-term rentals, with an average daily rate of €136.
Real estate agencies and media often spotlight Lapad as a high-demand area, and the ongoing development of modern residential complexes and infrastructure improvements only add to its allure. This makes it a favorite among both domestic and international investors.
The scarcity of available properties in Lapad highlights its desirability, as buyers and investors are eager to capitalize on its location benefits.
Sources: Total Croatia News, Airbtics, Skift
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) Hvar is gaining attention for its luxury real estate and high-end tourism appeal
The island of Hvar is a rising star in the luxury real estate market, thanks to its allure as a high-end tourist destination.
In recent years, property prices on Hvar have surged, with the average price per square meter climbing by 36% from 2020 to 2023. This upward trend is expected to persist as tourism flourishes and available land remains scarce. The island's appeal is not just in its natural beauty but also in its exclusivity, making it a prime spot for those seeking luxury.
Luxury developments are reshaping the island's landscape. The Maslina Resort, for example, has expanded to include private luxury villas, offering a blend of modern comfort and natural beauty. Similarly, the Four Seasons Resort Hvar provides a range of high-end accommodations and amenities, catering to affluent travelers who desire both luxury and the island's stunning vistas.
Tourism on Hvar is booming, with visitor numbers expected to rise significantly. This growth is driven by the island's breathtaking landscapes and rich cultural experiences, making it a magnet for luxury seekers. The media has played a role in this, spotlighting Hvar as a top luxury travel destination and drawing attention to its exclusive properties and amenities.
Hvar's reputation as a luxury hotspot is further cemented by its unique offerings. The island's combination of pristine beaches, historical sites, and exciting nightlife attracts a diverse range of high-end tourists. This influx of visitors not only boosts the local economy but also increases demand for luxury real estate.
As Hvar continues to develop, the island is poised to become an even more desirable location for luxury real estate investment. The limited availability of land, coupled with the growing interest from international buyers, suggests that property values will continue to rise, making it a wise investment for those looking to enter the luxury market.
Sources: Panorama Scouting, Total Croatia News, Eumeli, Yachts Croatia
4) Poreč in Istria is gaining interest for its vibrant tourism and coastal appeal
Poreč in Istria is catching the eye of property buyers for good reasons.
Over the past few years, property prices in Poreč have jumped by 36%, reflecting a strong demand for real estate. This coastal town, with its stunning views and vibrant lifestyle, is becoming a hot spot for those looking to invest in property. The charm of Poreč lies not just in its scenic beauty but also in its rich history and culture, making it a desirable place to own a home.
In the first half of 2023, real estate transactions in Istria, including Poreč, surged by 53.9%. This spike in sales shows that more people are eager to buy property here, possibly drawn by the town's unique blend of old-world charm and modern amenities. The local real estate market is buzzing, with new developments and renovations adding to the appeal.
The tourism sector in Poreč is booming, which is a big draw for property buyers. By June 2024, the city recorded over one million tourist nights, showcasing its popularity as a travel destination. This influx of visitors not only boosts the local economy but also makes owning property here a potentially lucrative investment, especially for those interested in vacation rentals.
With nearly 235,000 tourist arrivals by mid-2024, Poreč's appeal as a destination is undeniable. The town's lively atmosphere, coupled with its beautiful beaches and cultural events, attracts tourists from all over the world. This vibrant tourism scene is a key factor driving the property market, as more people see the potential for rental income and property appreciation.
For those considering buying property in Poreč, the town offers a unique opportunity to be part of a thriving community. The combination of rising property values and a booming tourism industry makes it an attractive option for both investors and those looking for a second home. The local government is also investing in infrastructure and services, further enhancing the town's appeal.
Sources: Global Property Guide, Karlobag.eu, Panorama Scouting
5) Varaždin is attracting investors with its affordable housing and growth potential
Varaždin is a hotspot for investors thanks to its affordable housing market.
In 2023, property prices in Varaždin were significantly lower than in Zagreb, making it a prime choice for real estate investment. While the rest of the country saw a surge in real estate prices, Varaždin's market is expected to stabilize, offering a secure investment environment.
Real estate agents have noticed a strong demand for properties in Varaždin, which adds to its appeal. This demand is likely fueled by the city's ongoing infrastructure developments, including new transportation links and EU-funded projects.
These improvements are not just about better roads; they also include efforts to boost education standards and support entrepreneurship. Such initiatives are setting the stage for Varaždin's economic growth, making it a city with promising potential.
Investors are also drawn to the city's strategic location, which is enhanced by these infrastructure upgrades. The combination of affordable housing and economic prospects makes Varaždin a compelling choice for those looking to invest in Croatia.
Sources: The Dubrovnik Times, Invest Croatia, SAFU
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6) Split’s Meje district is gaining attention for its luxury properties and breathtaking Adriatic Sea views
Split's Meje district is now a hotspot for luxury real estate thanks to its breathtaking views of the Adriatic Sea.
In 2023, the average price per square meter in Meje hit 5496 euros, a clear sign of the area's growing allure. This surge in prices shows a strong demand for high-end homes, especially those with stunning sea views.
Both local and international buyers are flocking to Meje, drawn by its rich history and Mediterranean charm. The trend continued into 2024, with luxury apartments being snapped up quickly, pushing property values even higher.
Recent buyers rave about places like the Luxe Residence, which offer modern Mediterranean living with panoramic sea views. These properties are not just homes; they're smart investments, perfect for living year-round or renting out to tourists.
Media outlets have spotlighted Meje's rise in the luxury market, noting its architectural beauty and historical significance. This attention has only added to the district's appeal, making it a prime location for high-end property investments.
With its unique blend of history, beauty, and modern living, Meje is becoming a must-watch area for property buyers looking for something special in Split.
Sources: Total Croatia News, Connect Houses, Le Figaro Properties
Our team found this video, "Ultimate Where to Stay in Split Croatia Guide", which highlights Meje's luxury properties and stunning views, reinforcing its appeal as a hot market.
7) Osijek in eastern Croatia is drawing investors with low property prices and high rental yield potential
Osijek in eastern Croatia is becoming a hotspot for property investors due to its affordable real estate market.
In 2023, Osijek saw 1,060 apartment transactions, which accounted for about 5% of all property deals in Croatia. This momentum carried into 2024, fueled by new infrastructure projects and economic growth.
Investors are drawn to Osijek because of its lower property prices. With an average asking price of around €1,130 per square meter, it's much cheaper than cities like Split and Zagreb. This affordability means investors can expect high rental yields and potential long-term gains.
The city is buzzing with infrastructure upgrades, including new kindergartens, schools, and public transport systems. These projects are backed by European and national funds, totaling over a billion kuna. Osijek is also seeking HRK 440 million under the National Recovery and Resilience Plan, focusing on education and public infrastructure.
The rental market is thriving, with 1,060 apartments rented out in the first quarter of 2024. This demand is partly driven by a rise in tourism in eastern Croatia, making Osijek a prime spot for both short-term and long-term rentals. While specific rental yield stats aren't available, the high demand and low property prices suggest rental yields could surpass the national average.
Sources: Avison Young, Total Croatia News, Total Croatia News
8) Šibenik is becoming a real estate hotspot for its cultural heritage and rising tourist numbers
Šibenik is quickly becoming a real estate hotspot thanks to its rich cultural heritage and a surge in tourist visits.
In recent years, Šibenik has gained recognition for its exceptional cultural sites like the Cathedral of St. Jakov and the fortress of St. Nicholas. These landmarks are not just tourist magnets but also attract investors keen on cultural tourism. The city is buzzing with activity, and it's not just the locals who are noticing.
Tourist numbers are on the rise, with 175,967 visitors recorded in the first half of 2021, making Šibenik one of Croatia's top ten destinations. This influx is pushing property prices up, with the average cost of new homes in Croatia rising by 7.12% in early 2024. Šibenik is feeling this demand more than most, as more people look to invest in its growing real estate market.
Adding to its charm, Šibenik is investing in new infrastructure, like the revitalization of St. John’s fortress, which enhances its appeal as a cultural destination. The city is alive with events, hosting festivals such as the International Children’s Festival and the Comedy Fortress Festival. These events draw diverse crowds, further cementing Šibenik's reputation as a vibrant cultural hub.
Locals and visitors alike are drawn to the city's unique blend of history and modernity. The ongoing development projects and cultural events are not just boosting tourism but are also making Šibenik a prime spot for real estate investment. The city is transforming, and those in the know are eager to be part of its exciting future.
Šibenik's rise as a real estate hotspot is not just about numbers; it's about the lifestyle and opportunities it offers. With its rich history, cultural events, and growing infrastructure, Šibenik is becoming a place where people want to live, work, and invest.
Sources: Urbact, Global Property Guide, Croatia Real Estate Insight
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) Rijeka’s Trsat neighborhood is gaining interest for its historic charm and panoramic views, boosting property values
Rijeka's Trsat neighborhood is catching eyes for its historic charm and stunning views, making it a hot spot for property buyers.
In recent years, the area has seen a notable rise in property values, with the Primorje-Gorski Kotar County leading the country with a 12% growth in 2024. This suggests that Trsat is also experiencing a similar boom, turning it into a promising investment.
Trsat's rich history and unique architecture are major attractions for those looking for something special. Both local and international investors are drawn to its historic features, boosting its reputation as a prime spot for real estate investment.
Real estate reports highlight Trsat's potential for value appreciation, especially for properties that are ripe for renovation or conversion. This makes it an appealing choice for savvy investors.
Buyers are particularly interested in neighborhoods with panoramic views, and Trsat delivers with its coastal scenery. This desire for a high quality of life and beautiful vistas adds to the neighborhood's allure.
Media and social media often spotlight Trsat's attractions, emphasizing its historic charm and cultural activities, which continue to draw interest from potential buyers.
10) The island of Krk is attracting buyers with its traditional charm and modern amenities, driving steady property appreciation
The island of Krk is a hot spot for property buyers, thanks to its blend of traditional charm and modern amenities.
In 2023, Krk's tourism sector boomed, with a notable increase in overnight stays, showing just how popular the island has become. This surge in visitors is a clear sign of a thriving tourism industry, which in turn boosts property values.
Property transactions on Krk have also seen a significant uptick. In the first half of 2023, there was a rise in new dwellings sold compared to the previous year. This trend highlights the island's growing appeal to both tourists and those looking to settle down.
Local authorities have been busy improving infrastructure and investing in tourist facilities, making Krk even more attractive. These efforts include upgrading accommodation facilities, which not only draw more visitors but also entice potential property buyers.
Krk's charm lies in its ability to offer a unique lifestyle, combining the old-world feel with modern conveniences. This balance is what makes the island a desirable location for property investment, as it continues to draw interest from various buyers.
With its ongoing development and increasing popularity, Krk is set to remain a top choice for those looking to invest in property. The island's steady property appreciation is a testament to its enduring appeal.
Sources: Panorama Scouting, Total Croatia News, Global Property Guide, Croatia Week
11) Rovinj in Istria is gaining interest for its scenic beauty and growing tourist numbers
Rovinj's charm is captivating real estate enthusiasts with its stunning coastal views and historic architecture.
Imagine waking up to the breathtaking scenery of Rovinj, a picturesque town in Istria that's becoming a hot spot for property buyers. Its natural beauty isn't just a feast for the eyes; it's a magnet for tourists and potential homeowners alike. Tourists are flocking to Rovinj, drawn by its unique blend of history and seaside allure.
In August 2024, foreign tourists spent a million nights in Rovinj, a slight increase from the previous year. This isn't just a summer fling; from January to August 2024, there was a 4.4% rise in tourist arrivals compared to 2023. Such steady growth underscores Rovinj's growing reputation as a must-visit destination.
With more visitors, the demand for places to stay has skyrocketed. In August 2024, holiday accommodations in Rovinj were 71.4% full. This high occupancy rate is a testament to the town's irresistible appeal. Real estate agencies are buzzing with activity, as more people look to invest in this thriving locale.
Rovinj's real estate market is heating up, thanks to its increasing popularity among tourists. The town's unique charm and rising visitor numbers are driving up demand for properties. Real estate transactions are on the rise, reflecting this growing interest.
For those considering a property purchase, Rovinj offers a blend of scenic beauty and a vibrant tourist scene. It's not just a place to live; it's an investment in a lifestyle that's becoming increasingly sought after. Rovinj is a gem in the real estate market, with its picturesque setting and bustling tourism.
Sources: Properstar, DZS
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12) Zagreb’s Trešnjevka is popular for its affordable homes and high rental demand from young professionals
Trešnjevka in Zagreb is becoming a hotspot for property buyers due to its affordable prices and strong rental demand.
In Trešnjevka, you can find apartments priced between €2,000 and €2,500 per square meter, which is a bargain compared to pricier areas like Trešnjevka-jug and Gornji grad-Medveščak. This makes it a great choice for those looking to invest without breaking the bank.
The rental scene here is buzzing, with young professionals flocking to the area for its affordability and lively atmosphere. Trešnjevka offers a mix of residential spaces, shops, and cultural spots, making it a perfect fit for this crowd.
What adds to Trešnjevka's charm is its easy access to nature and efficient public transport. Young professionals often mention these perks on social media, showing a clear preference for the neighborhood.
Ongoing development projects and infrastructure upgrades are further boosting Trešnjevka's appeal, hinting at a promising future for the area. These improvements are making the neighborhood even more attractive to potential buyers and renters alike.
Sources: Real Estate Croatia, Rimac Real Estate, The Dubrovnik Times
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.