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Yes, the analysis of the Croatian Islands' property market is included in our pack
Thinking about buying a 3-bedroom apartment on the island of Hvar? It’s a stunning location, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other Croatian islands like Brač or Korčula where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Croatia Property Pack.
Will property prices increase in the Croatian Islands in 2025?
Yes, property prices in the Croatian Islands are expected to rise in 2025, driven by a combination of increasing tourism and limited available land for development.
Backed by our fresh, in-depth market analysis, we’re confident that the Croatian Islands remain a highly attractive destination for both domestic and international investors.
While there are some economic challenges like inflation and potential regulatory changes, the main drivers behind the islands' price growth are strong and persistent.
The allure of the islands as a tourist destination continues to grow, and with limited space for new developments, any significant price drops seem unlikely. Additionally, the islands' natural beauty and cultural appeal keep attracting buyers from around the world.
Signals pointing to a property price increase in the Croatian Islands
Here are some factors suggesting prices could increase:
The Croatian Islands are experiencing a surge in tourism, with visitor numbers expected to rise significantly in 2025. This increased demand for holiday accommodations is likely to drive up property prices, especially in popular tourist hotspots.
There is a limited supply of land available for new developments on the islands, which restricts the ability to increase housing stock. This scarcity is expected to push property prices higher as demand continues to outpace supply.
The Croatian government is investing in infrastructure improvements, such as better transportation links and utilities, which are expected to enhance the appeal of the islands and increase property values.
The islands are becoming increasingly popular among international buyers seeking vacation homes, which is expected to boost demand and drive up prices.
The trend of remote working is encouraging more people to consider living in scenic locations like the Croatian Islands, further increasing demand for residential properties.
The Croatian Islands are gaining recognition as a luxury destination, attracting high-net-worth individuals who are willing to pay premium prices for exclusive properties.
The natural beauty and cultural heritage of the islands continue to attract buyers, ensuring a steady demand for properties in the region.
Signals pointing to a property price decrease in the Croatian Islands
Here are some factors suggesting prices could fall:
Economic uncertainties, such as inflation and potential changes in interest rates, could impact buyers' purchasing power, potentially reducing demand for properties.
Regulatory changes or restrictions on foreign property ownership could deter international buyers, leading to a decrease in demand.
Environmental concerns, such as rising sea levels and climate change, could impact the desirability of coastal properties, potentially leading to a decrease in property values in vulnerable areas.
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If property prices go up in the Croatian Islands, how much would they increase by?
If real estate prices in the Croatian Islands were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in desirable, yet less mature markets like the Croatian Islands appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, tourism trends, and property type.
It means that, if you spot a charming 2-bedroom stone house on Hvar Island for 300,000 euros today, don't be surprised if it's priced between 309,000 and 321,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Croatian Island real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Stone House (60 sqm / 646 sqft) | €300,000 | €309,000 | €315,000 | €321,000 |
| Modern Villa (120 sqm / 1,292 sqft) | €800,000 | €824,000 | €840,000 | €856,000 |
| Luxury Seafront Villa (200 sqm / 2,153 sqft) | €2,000,000 | €2,060,000 | €2,100,000 | €2,140,000 |
| Studio Apartment (30 sqm / 323 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
| Traditional Dalmatian House (80 sqm / 861 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Island Townhouse (150 sqm / 1,615 sqft) | €1,000,000 | €1,030,000 | €1,050,000 | €1,070,000 |
| Investment Property (50 sqm / 538 sqft) | €250,000 | €257,500 | €262,500 | €267,500 |
Everything you need to know is included in our Property Pack for the Croatian Islands
If real estate prices go up in the Croatian Islands, which areas are likely to see the biggest increases?
Today, people who want to move to the Croatian Islands seek the stunning natural beauty, but they also desire modern amenities and vibrant local culture, which Hvar Town delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant areas, and Korčula Town has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Croatian Islands market.
| Area | Level of Increase | Why |
|---|---|---|
| Hvar Town | High | Recent development of luxury villas and its increasing appeal to international tourists as travel normalizes post-pandemic, driving demand. |
| Dubrovnik (Old Town) | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in this historic area. |
| Korčula Town | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Split (Diocletian's Palace) | Medium | The shift towards hybrid workspaces is driving demand for residential properties near cultural landmarks, combined with new mixed-use developments. |
| Zadar (Old Town) | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Rovinj | Medium | Investment in local infrastructure, such as the extension of ferry lines and renovation of historic areas, is boosting long-term value. |
| Vis Town | Medium-High | With new cultural and commercial spaces being developed, this trendy area is seeing increased demand from both residents and investors. |
| Pula | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Šibenik | Medium-High | Its proximity to national parks, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Mljet | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Brač (Bol) | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Pag (Novalja) | High | Upcoming restoration of cultural sites and high-profile tourism projects are driving a renewed focus on this vibrant location. |
-Is it a good time to buy real estate in the Croatian Islands?
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in the Croatian Islands?
In 2025, real estate trends in the Croatian Islands focus on sustainable villas, waterfront properties, homes with private docks, and eco-friendly developments—all driving higher demand and prices. Here is a summary.
- Sustainable Villas with Modern Amenities:
Driven by a desire for luxury and sustainability, these villas offer modern amenities and energy-efficient systems. They cater to affluent buyers and eco-conscious investors, making them a sought-after option in 2025.
- Waterfront Properties:
With stunning views and direct access to the sea, waterfront properties are highly desirable. The natural beauty and exclusivity of these locations are major factors driving value appreciation.
- Homes with Private Docks:
For boating enthusiasts and those seeking a maritime lifestyle, homes with private docks are in high demand. These properties offer convenience and a unique lifestyle, contributing to their increasing value.
- Eco-Friendly Developments:
The Croatian Islands' commitment to preserving natural beauty is boosting demand for eco-certified developments. Buyers are increasingly valuing properties that align with sustainable living, leading to price appreciation in this category.
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