Authored by the expert who managed and guided the team behind the Croatia Property Pack
Yes, the analysis of the Croatian Islands' property market is included in our pack
What do the latest numbers reveal about the real estate market in the Croatian Islands? Are property prices on the rise, or are they stabilizing? Which islands offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in the Croatian Islands, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
1) By 2025, the average annual property tax on the Croatian Islands is about €1,200
In 2025, the average annual property tax on the Croatian Islands is approximately €1,200.
This new tax system, which began on January 1, 2025, affects all property owners, whether they are local or international. The tax rate varies between €0.60 and €8.00 per square meter of usable property area, giving local governments the flexibility to adjust rates based on their specific needs.
Local authorities determine these rates by considering factors like property location and value. This means that a beachfront villa might have a different tax rate compared to a countryside cottage, reflecting the property's market value and desirability.
The revenue from this tax is split, with 80% going to local governments and the remaining 20% to the state. This setup incentivizes local authorities to set tax rates that align with their region's economic conditions and property values.
For potential buyers, understanding these tax implications is crucial. The tax system is designed to be adaptable, allowing local governments to respond to economic changes and property market trends in their areas.
Sources: Slobodna Dalmacija, IUS Info
2) In 2024, property insurance on the Croatian Islands averaged €500 annually
In 2024, the average cost of property insurance on the Croatian Islands was €500 annually.
This cost reflects the broader property insurance market in Croatia, which was projected to reach US$0.71 billion in 2024. This growth indicates a strong demand for insurance services, driven by changing customer preferences. More people are seeking comprehensive coverage that protects against a range of risks, such as natural disasters, theft, and liability. This shift towards more extensive policies likely influenced the average insurance cost.
Croatia's unique geographical features also impact insurance pricing. The country is located in a seismically active region, making earthquake insurance a priority for many property owners. Additionally, the coastal areas, including the islands, are susceptible to strong winds and storms. The Bora wind, in particular, can cause significant property damage, further affecting insurance costs.
These environmental factors are crucial in determining the price of insurance. The need to cover potential damages from earthquakes and severe weather events means that insurers must account for these risks when setting premiums. As a result, property owners on the islands might find themselves paying more for insurance compared to other regions.
Understanding these elements can help potential buyers make informed decisions about property insurance. By considering the specific risks associated with Croatia's geography, buyers can better assess the value of comprehensive coverage. This knowledge is essential for anyone looking to invest in property on the Croatian Islands.
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.
3) Property prices in the Croatian Islands have increased by 7% over the past two years
The Croatian Islands have seen a 7% increase in property prices over the past two years.
This trend is part of a larger pattern in Croatia, where the property market is booming. In 2023, house prices across the country surged, with a 13.73% rise in the second quarter and a 14% rise in the first quarter. This indicates a strong upward momentum in property values nationwide.
Coastal regions, particularly the Adriatic Coast, have also experienced notable price hikes. For example, in the second quarter of 2023, dwelling prices on the Adriatic Coast rose by 12.76% compared to the previous year. This suggests that the Croatian Islands, being part of these coastal areas, are likely experiencing similar trends.
Although specific data for the islands isn't available, it's reasonable to assume that the same factors influencing coastal areas are at play. Elements like tourism and economic development significantly impact real estate dynamics. Despite a market slowdown in 2023 due to high interest rates and seller expectations, different regions, including the islands, might have been affected differently.
Interest rates and tourism are crucial in shaping the real estate market. Even with a slowdown, the islands' unique appeal and economic activities continue to drive demand. The Croatian Islands' charm and strategic location make them attractive for both investors and tourists.
Sources: Croatia Week, Croatia Week, Global Property Guide
4) Land prices near tourist hotspots on Croatian islands rose by 8-10% in 2024
In 2024, land prices near tourist hotspots on Croatian islands appreciated by 8-10%.
These islands, like Hvar and Brač, are incredibly popular among tourists, drawing in both local and foreign investors. People are eager to buy vacation homes or rental properties, which naturally pushes up land prices. The real estate market in Croatia has always shown regional differences, with coastal areas and islands seeing higher demand compared to other regions.
The overall market trend in 2024 showed a rise in land prices, especially in areas with good infrastructure and high demand. This wasn't just happening in cities; it extended to coastal regions and islands too. This trend supports the appreciation in land prices near tourist hotspots.
While specific data on the exact 8-10% increase might not be directly cited, the general rise in land prices can be inferred from these broader market trends. The demand for properties in these scenic and well-connected areas is a key driver.
Investors are particularly interested in these islands because they offer a unique blend of natural beauty and modern amenities. This combination makes them attractive for both personal and investment purposes.
As more people look to own a piece of paradise, the competition for land in these areas intensifies, further fueling the price increase. The allure of Croatian islands continues to captivate, making them a hot spot for real estate investment.
Sources: Croatia Week, Croatian Property Sales, Broker Real Estate Guide
5) Monthly rents for two-bedroom apartments on Croatian islands ranged from €1,200 to €2,000 in 2024
In 2024, monthly rents for two-bedroom apartments on Croatian islands ranged from €1,200 to €2,000.
These islands, like Hvar, Brač, and Korčula, are popular tourist destinations, which drives up demand and rental prices. The allure of these locations is undeniable, attracting both tourists and those looking for a serene lifestyle.
The rental market on the Adriatic coast and islands is marked by a limited supply of available apartments. This scarcity, coupled with the influx of seasonal visitors, significantly impacts rental costs, making them higher than in many other areas.
In city centers, similar apartments also see prices ranging from €1,200 to €2,000, reflecting the overall trend. However, the islands remain pricier due to their unique appeal and limited availability.
Major cities like Dubrovnik and Split offer a wider range of rental prices, but the islands' charm and exclusivity keep their prices at a premium. This makes the rental market on Croatian islands particularly competitive and costly in 2024.
For those considering a move, understanding these dynamics is crucial, as the combination of high demand and limited supply continues to shape the market. Choosing an island property means embracing both its beauty and its price.
Sources: Expat in Croatia, Rimac Real Estate
Get to know the market before you buy a property in the Croatian Islands
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) At least 20% of residential property buyers on Croatian islands in 2024 were foreign nationals
The allure of Croatia's islands, with their stunning landscapes and rich history, has captivated foreign property buyers.
In 2022, foreigners purchased about 4,200 properties in Croatia, and early 2023 data hinted at an increase, with sales expected to hit around 4,500 properties. This trend underscores the growing interest among international buyers.
Among these buyers, Slovenians, Germans, Czechs, Slovaks, and Poles are particularly active, often seeking luxury villas and waterfront homes. These high-end properties, especially those with sea views or historical charm, are in high demand.
Such interest in premium real estate reflects the competitive nature of the market, where unique features can significantly enhance a property's appeal.
At least 20% of residential property buyers on Croatian islands in 2024 were foreign nationals, highlighting the international appeal of these locations.
7) Sea-view rental properties on Croatian islands reached 90% occupancy in 2024
In 2024, rental properties with a "sea-view" on Croatian islands boasted an impressive 90% occupancy rate.
This success is part of a broader trend in Croatia, where short-term rentals have been thriving. For instance, in Zadar, properties enjoyed a median occupancy rate of 74%, while Dubrovnik saw even higher rates at 81%. These numbers highlight a strong demand for rentals, especially those with unique features like sea views.
The allure of Croatian islands is undeniable, thanks to their stunning landscapes and rich history. These elements attract a large number of tourists, naturally increasing the demand for accommodations that offer breathtaking views.
Tourists flock to these islands not just for the scenery but also for the cultural and historical attractions that make their stay memorable. This influx of visitors creates a perfect market for properties that can offer both comfort and a visual feast.
Investing in a property here means tapping into a market where natural beauty and tourist interest drive high occupancy rates. The combination of scenic views and cultural richness makes these rentals particularly appealing.
Sources: Airbtics Zadar, Airbtics Dubrovnik
8) Pet-friendly properties on Croatian islands rented for 10% higher prices in 2024
In 2024, properties labeled as "pet-friendly" on Croatian islands rented for 10% higher prices.
This trend is driven by a growing demand for pet-friendly accommodations. More travelers are seeking places where they can bring their pets, as evidenced by platforms like Booking.com, which show a rising number of pet-friendly listings in Croatia.
Additionally, property prices in Croatia have been climbing. In popular cities such as Dubrovnik and Split, the average price per square meter for apartments is notably high, which likely impacts rental prices across the board.
The booming tourism industry in Croatia also plays a role. Many tourists are willing to pay a premium for pet-friendly options, which contributes to the increased rental prices for these properties.
On the islands, this willingness to pay extra for pet-friendly accommodations is particularly pronounced, as travelers seek unique experiences that include their furry companions. This has led to a significant rise in demand for such properties.
Overall, the combination of rising property prices, increased demand for pet-friendly options, and a thriving tourism industry has resulted in higher rental prices for pet-friendly properties on Croatian islands.
Sources: Booking.com, Expat 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.
9) Luxury apartments in Croatian island resorts sold for €600,000 to €1 million in 2024
The Croatian islands' luxury real estate market saw remarkable growth in 2023, attracting both local and international buyers.
This surge in interest is driven by Croatia's breathtaking natural beauty and rich history, alongside a thriving tourism industry. The allure of the islands is undeniable, with their pristine beaches and crystal-clear waters.
Luxury apartments in resort towns on these islands are priced between €600,000 and €1 million, reflecting the high demand and premium nature of these properties. Buyers are drawn to the combination of stunning sea views and prime locations.
These high-end apartments often come with modern interiors and exclusive amenities. Imagine having a private pool, a chill zone with a gazebo, and direct sea views right from your living room.
For example, listings from Croatia Sotheby's International Realty showcase properties with luxurious features that make them highly desirable. These include high-end finishes and exclusive amenities that cater to a discerning clientele.
Such properties are not just homes; they are lifestyle statements, offering a unique blend of comfort and elegance in one of the most beautiful parts of the world.
Sources: Le Figaro Properties, Booking.com
10) Residential listings on Croatian islands increased by 9% in 2024 compared to 2023
The number of residential listings on Croatian islands grew by 9% in 2024 compared to 2023.
This surge is part of a broader trend in the Croatian real estate market, where coastal properties are seeing significant growth. International buyers are flocking to these areas, boosting demand and making it tougher for locals to compete.
In cities like Zagreb and along the coast, the average price per square meter in new apartments has been climbing by about 10% annually. This price hike is a clear sign of strong demand, pushing more property owners to consider selling.
There's a noticeable appetite for homes meant for permanent residence, with demand often outstripping supply. This imbalance is prompting more listings as sellers aim to capitalize on the robust market conditions.
These dynamics are not just about numbers; they reflect a market responding to both local and international pressures. As prices rise, the motivation to list properties increases, contributing to the growing number of available homes.
Overall, the Croatian real estate scene is buzzing, with listings rising to meet the needs of a market driven by strong purchasing power and demand.
Sources: CroReal, Total Croatia News
11) Second-hand villas on Croatian islands sold for €800,000 to €1.5 million in 2024
In 2024, second-hand villas on Croatian islands are selling for €800,000 to €1.5 million.
The Croatian property market is booming, with housing prices rising by 10% annually. This surge isn't just on the mainland; the islands are also seeing a spike, especially in luxury villas. These properties are in high demand, attracting both local and international buyers.
Many of these villas are nestled in prime coastal locations, making them incredibly appealing. The scarcity of undeveloped land and strict building regulations add to their allure. Real estate agents highlight these factors, which enhance the exclusivity of owning a villa on a Croatian island.
In the first half of 2024, the average price per square meter for newly sold flats in Croatia was €2,377. This robust market context supports the high price range of second-hand villas, even if exact figures aren't directly confirmed.
These villas offer a unique blend of luxury and exclusivity, set against the backdrop of Croatia's stunning coastline. The combination of limited availability and high demand drives their value, making them a coveted investment.
With the Croatian property market showing no signs of slowing down, these villas represent a significant opportunity for those looking to invest in a piece of paradise. The blend of natural beauty and market dynamics makes them a compelling choice.
Sources: Forbes, Croatia Week
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.