Authored by the expert who managed and guided the team behind the Croatia Property Pack

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What is happening in the real estate market of the Croatian Islands? Are property values rising or falling? Are islands like Hvar and Brač still attracting international buyers? How are local regulations and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from investors, homeowners, and real estate enthusiasts, from Split to Dubrovnik and beyond. Maybe you're curious about these trends too.
We understand this because we maintain close connections with local experts and individuals like you, exploring the Croatian Islands' real estate market daily. That's why we crafted this article: to deliver clear insights, thoughtful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we'd love to hear your feedback. Feel free to reach out with your thoughts or comments, and we'll strive to enhance this content for you.


1) Foreign interest in historically significant islands will rise as cultural tourism gains popularity
In recent years, we've seen a noticeable increase in foreign property purchases on Croatian islands, particularly those with historical significance. This trend was evident in 2023 and 2024, with Slovenians, Germans, Czechs, Slovaks, and Poles being among the top buyers. Many of these purchases are concentrated in historically rich areas like Krk, Istria, and Dalmatia.
Visitor numbers to Croatia have also been on the rise, with 19.4 million tourists in 2023 and a continued boom in 2024. A significant portion of these visitors are drawn to historically significant sites such as Dubrovnik's old town and Split's Diocletian's Palace. This increase in tourism is closely linked to the growing interest in cultural tourism experiences.
Surveys and market analyses have shown a clear trend towards cultural tourism, with more people seeking out destinations that offer rich cultural and historical experiences. This is further supported by government initiatives aimed at preserving cultural heritage, which not only protect these sites but also enhance their appeal to tourists.
Media coverage and social media trends have played a crucial role in promoting the cultural and historical attractions of Croatian islands. Travel influencers and bloggers frequently share their experiences, highlighting the unique cultural offerings of places like Hvar and Brač, which in turn attracts more visitors.
Sources: Croreal, The Dubrovnik Times, Road Genius
2) Foreign buyers will focus more on Croatian islands for safe investments amid global economic uncertainties
Foreign buyers are eyeing the Croatian islands as a safe investment amid global economic uncertainties.
With property prices on the mainland rising, the islands offer a more affordable alternative. For instance, in Istria, the average price per square meter has jumped significantly from 2020 to 2023, making the islands a more attractive option for investors.
Tourism in Croatia is booming, with a noticeable increase in arrivals and overnight stays in 2023. This surge boosts the islands' appeal as popular travel spots, potentially leading to higher property values and rental income. The number of properties sold to foreigners is also on the rise, with 2023 data showing continued growth, indicating stable or appreciating property values on the islands.
Croatia's legal framework is quite favorable for foreign property ownership, which is a big draw for international investors. This supportive environment, along with media reports highlighting the islands as investment havens, adds to their growing popularity. Additionally, low crime rates and political stability make Croatia an attractive destination for safe investments.
Investors are also drawn to the islands because of their unique charm and natural beauty, which are increasingly recognized worldwide. The islands offer a serene escape, yet they are well-connected to the mainland, providing a perfect balance of tranquility and accessibility.
As global economic uncertainties persist, the Croatian islands stand out as a reliable investment choice, offering both security and potential for growth. The combination of affordability, increasing tourism, and a supportive legal environment makes them a compelling option for foreign buyers.
Sources: Panorama Scouting, Schengen News, Croreal, HNB

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) Rental yields in the Croatian islands will rise as tourism rebounds and visitors opt for longer stays
The Croatian islands are seeing a steady rise in tourism.
In 2023, tourist arrivals jumped by 9%, and in 2024, they climbed another 4%, totaling over 21.3 million. This growth is a strong sign of tourism rebounding, which is great news for anyone considering investing in rental properties.
Visitors are not just coming in droves; they’re staying longer, especially in the Adriatic region. In 2024, overnight stays increased by 1%, with hotspots like Istria and Split-Dalmatia County seeing notable growth in visitor duration. This means properties are occupied for longer, boosting rental yields.
Demand for rentals is high, as seen in coastal areas. Dubrovnik and Split have occupancy rates of 44% and 46%, respectively. Private accommodations are even more popular, with an average occupancy rate of 62%, showing that tourists prefer rentals over hotels.
With more tourists choosing longer stays, the yield on rental properties is set to rise. The Croatian islands are becoming a prime spot for property investment as tourism continues to flourish.
Sources: Schengen News, Total Croatia News, Croatia Week, Croatia Week
4) Foreign buyers will increase on islands with international schools, attracting expatriate families
The number of foreign buyers on islands with international schools is expected to rise, appealing to expatriate families. This trend has been evident since 2023 and 2024, as Croatian islands have increasingly attracted foreign property buyers. The allure of these islands is largely due to their stunning landscapes, pleasant climate, and high quality of life.
One of the key factors driving this trend is the growing demand for international school placements. For example, the American International School of Zagreb has seen a rise in enrollment, offering a curriculum that includes the International Baccalaureate (IB) program. This program is highly valued by expatriate families, making locations with such schools more attractive.
Surveys have shown that expatriate families prioritize access to high-quality international education when choosing where to live. In fact, a significant percentage of these families consider the availability of international schools a crucial factor in their relocation decisions. This preference is reflected in real estate market reports, which highlight increased interest and higher property prices in areas near international schools.
Sources: Expat Quotes, ISC Research, Welcome Center Croatia
5) Rental yields will drop on tourism-dependent islands as investors look for year-round income opportunities
Rental yields on islands that depend heavily on seasonal tourism are likely to decline as investors look for opportunities that provide income throughout the year. In the past, particularly in 2023 and 2024, we saw significant fluctuations in rental yields during off-peak seasons. For example, in Dubrovnik, the market was saturated with short-term rental properties, leading to a decline in rental yields and lower occupancy rates compared to hotels.
Climate change has also played a role by making weather conditions less predictable, which can shorten peak tourism seasons and further reduce rental yields during off-peak times. This unpredictability has made investors wary of relying solely on seasonal tourism for income. Instead, they are increasingly interested in properties that offer year-round rental potential, such as those found in mainland areas with more stable tourism activities.
Moreover, islands that have diversified their economies by promoting off-season tourism have managed to stabilize rental yields. For instance, Hvar has successfully attracted visitors throughout the year, providing a steady stream of income. This trend is supported by statistics showing growth in year-round tourism activities, with significant increases in arrivals and overnight stays during traditionally off-peak months.
Sources: Global Property Guide, Travel and Tour World, Croatia Week
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6) Interest in properties with private docks will grow as boating gains popularity
In recent years, particularly in 2023 and 2024, there has been a noticeable increase in the popularity of boating activities in the Croatian Islands. This trend is reflected in the rising revenue from nautical ports, which saw a 12.1% increase in 2023, with berth rentals alone accounting for a significant portion of this growth. This suggests that more people are interested in boating and are willing to invest in the necessary facilities.
Additionally, the development of new marinas and the expansion of existing ones, such as the significant investment in the Dubrovnik marina, indicate a growing demand for docking facilities. This infrastructure development aligns with the increased interest in boating, as more people seek convenient and accessible places to dock their boats.
Real estate market reports also highlight a growing demand for waterfront properties, particularly those with private docks or mooring facilities. Real estate agents have noted an increase in inquiries for such properties, reflecting the desire of boating enthusiasts to have easy access to the water from their homes.
Moreover, the heightened media coverage and social media trends showcasing boating experiences in Croatia further amplify the appeal of the Adriatic Sea as a prime destination for boating enthusiasts. This increased visibility contributes to the growing interest in properties with private docks, as people are inspired by the boating lifestyle portrayed in these platforms.
Sources: Mint.gov.hr, Total Croatia News, Goolets.net
7) Rent prices on islands with many short-term rentals will stabilize as regulations tighten
In recent years, particularly in 2023 and 2024, many islands with a high concentration of short-term rentals have faced increasing pressure to regulate these rentals. This has been driven by concerns over housing availability and affordability for local residents. As regulations tighten, we can expect rent prices to stabilize in these areas.
One of the key reasons for this stabilization is the shift in property use. When regulations limit short-term rentals, property owners often pivot to offering long-term rentals instead. This increases the supply of long-term rental properties, which can help balance the market and prevent rent prices from skyrocketing. For example, in New York City, despite the ban on Airbnb, the market saw a stabilization in terms of rental availability, even if prices didn't drop significantly.
Additionally, government interventions, such as capping the number of days a property can be rented short-term or imposing higher taxes on short-term rentals, can discourage property owners from focusing solely on short-term rentals. This was observed in places like France, where regulations aimed at reducing tax breaks and capping rentals at 90 days per year were introduced to stabilize the market. These measures can lead to a more balanced rental market, benefiting both local residents and property owners.
Furthermore, as the demand for short-term rentals decreases due to these regulations, tourists may turn to alternative accommodations like hotels, which can further reduce the pressure on the rental market. This shift in tourism trends can contribute to a more stable rental environment, as seen in various tourist-heavy areas.
Sources: Hospitality Net, Enso Connect, EisnerAmper
8) Island rent prices will rise with better digital infrastructure, attracting remote workers for long-term stays
The Croatian islands are becoming a hotspot for remote workers thanks to their upgraded digital infrastructure.
Places like Hvar, Vis, Korčula, and Lastovo are not just about stunning views anymore; they now offer excellent internet connectivity, making them perfect for digital nomads. This reliable internet is a game-changer for those who work remotely, and it's one of the main reasons why these islands are seeing a surge in popularity.
The Croatian government has been proactive, introducing a visa specifically for digital nomads. This move has made the islands even more appealing, leading to noticeable population growth in areas with strong digital connections. As more people move in, the demand for housing is rising, and so are the rental prices.
With more remote workers choosing these islands for long-term stays, rental prices are climbing as the demand for accommodations with modern amenities increases. The combination of natural beauty and modern conveniences is hard to resist, and it's driving a new wave of interest in these locations.
As the digital infrastructure continues to improve, the trend of rising rent prices is expected to continue. Remote workers are drawn to the balance of work and leisure that these islands offer, making them a top choice for those seeking a change of scenery without sacrificing connectivity.
Sources: Croatia Week, Luxury Living Croatia, Total Croatia News

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) Virtual reality tours will become standard for showcasing island properties to international buyers
Virtual reality (VR) tours have become a game-changer in the real estate industry, especially for showcasing island properties to international buyers. By 2025, the global market value of VR in real estate is projected to reach $2.6 billion, reflecting a significant increase in adoption over the past few years. This growth is largely due to advances in VR technology, which have made it more accessible and affordable for real estate agents to incorporate into their marketing strategies.
In Croatia, the interest from international buyers in island properties has been on the rise. With over 300,000 vacation properties owned by foreign citizens, and a growing number of properties sold to foreigners each year, the demand for innovative ways to view these properties remotely has increased. VR tours offer a lifelike experience that traditional methods cannot replicate, making it easier for buyers to visualize themselves in the property without having to travel.
Real estate agencies have reported higher engagement and sales through VR tours, as they provide more interactive and personalized experiences. This trend is supported by consumer surveys indicating a preference for virtual tours, with numbers showing that VR tours can reach 30% more buyers and speed up sales by 20%. The positive feedback from buyers who have used VR tours further highlights their effectiveness in providing a realistic view of properties, aiding in decision-making without the need for physical visits.
Sources: Croreal, EZ Real Estate Tools
10) Stricter building regulations will affect new property development on the Croatian Islands
In 2023 and 2024, the number of building permits issued in Croatia showed a trend that suggested stricter regulations might lead to a decrease in new property developments. Although building permits were increasing, the rate of increase had slowed, possibly due to the anticipation of stricter regulations.
Real estate developers reported increased costs and delays because of compliance with new regulations. The new law on building management and maintenance in Croatia, effective from January 1, 2025, introduced stricter rules and fines for non-compliance. This could lead to higher costs for developers and potentially reduce the number of new property developments.
Surveys of property developers and investors often expressed concerns or intentions to reduce investment due to regulatory changes. In Croatia, the new law aimed to regulate building management and maintenance more strictly, which could deter some investors.
Sources: Croreal, CEIC Data, Total Croatia News
11) Tax incentives will boost eco-friendly developments on the Croatian Islands
Tax incentives for sustainable building practices can play a crucial role in encouraging eco-friendly developments on the Croatian islands. In the past, the Croatian government has shown strong support for sustainable development through initiatives like the National Development Strategy, which emphasizes green building practices. This kind of government backing sets a positive tone for future developments.
Moreover, the construction industry in Croatia has been growing steadily, with a notable increase in construction permits and government investments in infrastructure projects. This growth trend, observed in 2023 and 2024, indicates a robust market that can benefit from tax incentives to further promote eco-friendly construction. Additionally, successful case studies, such as the sustainable development in the village of Postira on the island of Brač, demonstrate the potential for similar projects across other islands.
International examples also provide valuable insights. Countries like Germany and the Netherlands have successfully used tax incentives to boost green building practices, suggesting that similar strategies could be effective in Croatia. Furthermore, the growing awareness of climate change impacts on island ecosystems is likely to increase demand for sustainable building practices, as both property owners and developers seek to mitigate these impacts.
Sources: Constructive Voices, Sciendo, GlobeNewswire
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12) Property values on smaller islands with limited infrastructure will grow slowly as investors prioritize convenience
In recent years, particularly in 2023 and 2024, we've seen that smaller Croatian islands with limited infrastructure have experienced slower growth in property values. This trend is largely due to the minimal infrastructure development on these islands compared to their larger counterparts. For example, the Maslina Resort in Stari Grad, Hvar, is one of the few large-scale tourist resorts built recently, and it benefits from being in a more accessible area with better infrastructure.
When we look at property value growth rates, areas with better infrastructure, like Istria and Kvarner, have seen significant increases. In Istria, the price per square meter reached up to €3,517, marking a 7.1% increase from the previous year. In contrast, smaller islands haven't experienced such rapid growth. This is because investors often prioritize convenience and infrastructure when making property purchases. Many developments on smaller islands are small-scale, usually waterfront projects with up to 10 units or less, and are located in areas with relatively better infrastructure.
Transportation and accessibility reports further highlight the challenges faced by smaller islands. The lack of direct flights or reliable public transportation can make these islands less appealing to potential buyers and investors. Additionally, demographic trends show population decline or stagnation on smaller islands, which can reduce demand for properties and lead to slower growth in property values. Tourism statistics also indicate that less accessible islands receive lower visitor numbers, which can impact property demand.
Sources: Global Property Guide, CroReal, Total Croatia News
13) Demand for properties with home office spaces on the islands will rise due to the influx of digital nomads
The Croatian Islands are becoming a hotspot for digital nomads, driving up the demand for homes with office spaces.
In recent years, Croatia has emerged as a favorite among digital nomads, with around 10,000 of them settling in each month. This trend is fueled by the search for beautiful and peaceful places to work remotely. The islands, with their stunning views and modern amenities, offer the perfect mix of work and play.
What makes the Croatian Islands so appealing is their natural beauty combined with modern infrastructure. The government is also playing a part by launching initiatives like the "Smart Islands" program, which aims to turn these islands into tech-friendly hubs. This makes them even more attractive to those who work remotely.
There's a growing number of coworking spaces and tech incubators popping up across the islands, creating a supportive environment for remote workers. This development is a clear sign that the demand for properties with home office spaces is on the rise. Digital nomads who have already made the move to the islands often share positive experiences, adding to the islands' allure.
As more digital nomads choose the Croatian Islands, the need for homes that cater to both living and working is expected to grow. The influx of these remote workers is not just a passing trend; it's a shift that is likely to continue, boosting the local real estate market.
Sources: Mighty Travels, Croatia Week, World Economic Forum
14) Island properties with direct ferry links to major cities will see higher demand as remote work becomes more common
As remote work has become more common in recent years, people are looking for places that offer both accessibility and a peaceful environment. Islands with direct ferry connections to major cities provide this perfect balance, making them highly attractive to remote workers.
In 2023 and 2024, we saw a noticeable increase in property sales on islands like Krk and Pag, which are well-connected by ferries. This trend is largely due to their easy accessibility and the growing appeal of remote work locations. Additionally, the rental market on these islands has experienced a rise in prices, driven by the demand from both tourists and remote workers.
Surveys have shown that remote workers prefer locations that are accessible yet secluded, and islands with direct ferry connections fit this preference perfectly. The introduction of new ferry routes and improved services, such as Jadrolinija's €18 million ferry Dalmacija, has increased passenger numbers, further enhancing the appeal of these islands for remote workers.
Sources: EJES, Cruise and Ferry, Total Croatia News

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Croatia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Luxury villas will become less appealing as buyers prefer modest, sustainable homes
In recent years, particularly in 2023 and 2024, there has been a noticeable shift in the housing market towards more sustainable and modest homes. This trend is especially evident in the Croatian Islands, where the demand for eco-friendly and energy-efficient homes has been on the rise.
Buyers are becoming increasingly aware of climate change and the environmental impact of their choices. This growing awareness is driving them to seek homes that contribute to environmental preservation. Younger generations, like millennials and Gen Z, are leading this change by prioritizing eco-friendly features and sustainable living practices when choosing a home.
Additionally, the media has been highlighting the benefits of sustainable homes, showcasing case studies and green building projects in Croatia as models of eco-friendly construction. This media coverage, along with trends on social media promoting sustainable and modest living, is influencing consumer preferences.
Sources: Alfa Elmas, Constructive Voices, House Sold Easy
16) Younger families will move to islands with quality schools and healthcare due to demographic shifts
In recent years, we've seen a noticeable trend of younger families moving to islands, particularly those with good schools and healthcare facilities. This shift is partly due to the population increase in certain island towns, like Supetar on the island of Brač, which has grown by 8.5% since 2011. This growth suggests that these areas are becoming more attractive to families looking for a better quality of life.
One of the key reasons for this demographic shift is the local government initiatives aimed at attracting young families. For example, Supetar has implemented programs such as “Sritna dica, sritan grad” (Happy children, happy town), which provide financial support for families with multiple children, free textbooks, and scholarships. These incentives make it easier for families to settle and thrive on the islands.
Additionally, the quality of life on these islands is a significant draw. Supetar has been nominated for the Best Small Town in the “Quality of Life” category for two consecutive years, highlighting the focus on improving living conditions, which often includes access to good schools and healthcare. This emphasis on quality of life is crucial for families when deciding where to live.
Sources: Croatian Week, The Global Economy
17) Demand for smaller, accessible homes will rise on some islands due to an aging population
As we look back at the trends from 2023 and 2024, it's clear that the aging population on some Croatian islands is a significant factor in the housing market. The number of older adults has been steadily increasing, which naturally leads to changes in housing preferences.
Older adults often prefer homes that are easier to maintain and closer to essential services like healthcare. This preference has been observed in various studies and is particularly relevant in areas that offer a high quality of life, such as the Croatian islands. As a result, there's a noticeable shift towards smaller homes or apartments that meet these needs.
Additionally, the real estate market trends on these islands have shown a growing interest in properties that are not only accessible but also easy to manage. This trend aligns with the demographic studies that highlight the longer life expectancy of island residents, further emphasizing the need for housing that supports an aging population.
Sources: Emerald Insight, Terra Dalmatica
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.