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
Where are the best places to invest in the Croatian Islands right now? Is Hvar still the top pick, or are islands like Brač, Korčula, and Vis gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with local real estate agents, property developers, and clients who invest across the islands. 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 the Croatian Islands 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) Vis Town on Vis Island is attracting interest with high rental yields from rising tourism and limited accommodation options
Vis Town on Vis Island has been gaining significant attention for its high rental yields, primarily due to a surge in tourism and limited accommodation options. In 2024, the island experienced a notable increase in tourist arrivals, with 1.9 million tourists visiting in May alone, marking a 19.6% rise compared to the previous year. This influx of visitors has naturally led to a higher demand for places to stay.
Foreign tourists have been the main contributors to this boom, with a 20.8% increase in arrivals and a 25.6% increase in overnight stays compared to 2023. This growing interest in Vis Town as a travel destination has been further fueled by media coverage and social media trends, which have showcased the town as a must-visit hotspot. As a result, the demand for short-term rentals has surged, leading to competitive rental markets where property owners can offer attractive rates.
However, the accommodation capacity in Vis Town has not kept pace with this rising demand. According to HTZ director Kristjan Staničić, the growth in accommodation capacity is not sustainable in the long run, which contributes to the high rental yields. This limited availability of places to stay, combined with the increasing number of tourists, has created a perfect storm for property owners looking to capitalize on the rental market.
Sources: Podaci DZS, Croatia Week
2) Hvar Town on Hvar Island is booming with luxury real estate demand, driven by its celebrity vacation spot reputation
Hvar Town on Hvar Island has become a hot market for luxury real estate, largely due to its reputation as a celebrity vacation spot. Over the years, many celebrities have visited Hvar, including Jodie Foster, Beyoncé, Tom Cruise, and Bono. These visits have significantly boosted the town's image as a glamorous destination, attracting more affluent tourists and potential property buyers.
The demand for luxury real estate in Hvar Town has been on the rise, with property prices increasing by about 36% since 2020. By 2023, the average price per square meter reached €3,150, making it one of the top five most expensive locations in Croatia. This price surge is a clear indicator of the growing interest in high-end properties in the area.
Additionally, the town's appeal is further enhanced by its upscale amenities and services, which cater to luxury travelers. The presence of high-end restaurants, luxury hotels, and exclusive services makes it an attractive destination for those seeking a lavish lifestyle. The combination of celebrity endorsements, rising property values, and luxury amenities has solidified Hvar Town's status as a prime location for luxury real estate investment.
Sources: Panorama Scouting, Total Croatia News, Global Property Guide
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) Supetar on Brač Island is gaining interest for its affordable real estate and potential for appreciation compared to other island towns
Supetar on Brač Island is drawing attention for its affordable real estate prices compared to other island towns, with potential for appreciation. One of the main reasons is the comparative real estate price data. For example, a studio apartment in Supetar can be purchased for around €63,000, which is significantly lower than prices in other popular island towns like Opatija, where apartments can cost upwards of €3,417 per square meter.
The historical price trends in Croatia also play a role. The real estate market in Croatia has shown steady growth since 2016, with a cumulative increase of 68.8% from 2016 to 2022. This suggests that Supetar, being part of the broader Croatian market, could also experience steady or increasing property values.
Additionally, reports indicate that the number of new dwellings sold in Croatia rose by 25.9% in the first half of 2023, with coastal areas and holiday destinations experiencing significant growth. This trend highlights the rising demand and potential for property value appreciation in Supetar.
Sources: Global Property Guide, Brac Property
4) Rab Town on Rab Island is gaining interest for its family-friendly vibe and stunning beaches
Rab Town on Rab Island has been experiencing a surge in property interest, and there are a few key reasons for this trend. One of the main factors is the town's reputation as a family-friendly destination, which has been growing over the past few years. This reputation is supported by the development of new family-oriented facilities and services, such as the Valamar Collection resort, which offers numerous amenities for families, including indoor and outdoor pools and children's facilities.
Additionally, Rab Island's beautiful beaches are a significant draw for families looking for a picturesque and relaxing environment. Media coverage often highlights these beaches and the family-friendly amenities available in Rab Town, further enhancing its appeal. The island's popularity as a tourist destination has also been on the rise, with a notable increase in tourist arrivals and nights in 2023, indicating a broader trend in Croatian tourism.
Moreover, the increased investment in infrastructure on Rab Island, such as the construction of new resorts and facilities, reflects a growing interest in developing the area to support tourism. This investment not only improves the quality of life for residents but also makes Rab Town more attractive to potential property buyers. Real estate agencies have reported high demand for properties in Rab Town, with numerous listings available, indicating a strong interest from both domestic and international buyers.
Sources: Total Croatia News, DZS, Jetsy Travels, Real Estate Croatia
5) Mali Lošinj on Lošinj Island is gaining interest for its rental income potential as a wellness tourism hub
Mali Lošinj on Lošinj Island is becoming a magnet for investors, thanks to its promising rental income potential as a wellness tourism hub. In recent years, the area has seen a significant increase in the number of wellness resorts and spas, with notable achievements like the Hotel Bellevue’s Spa Clinic and Vitality Hotel Punta winning prestigious awards in 2024. This trend indicates a growing interest in wellness tourism, which is drawing more investors to the region.
The rise in tourist arrivals for wellness tourism has been remarkable. In 2023, the County of Istria, where Lošinj Island is located, recorded the highest number of tourist arrivals and overnight stays, with a notable influx of foreign tourists from countries like Germany, Slovenia, and Austria. This surge in visitors highlights a strong demand for wellness tourism, which is expected to continue, making the area attractive for investment.
Additionally, there has been a significant growth in short-term rental demand. In 2023, 40% of overnight stays in Croatia were in private accommodations, reflecting a high demand for short-term rentals. This trend is particularly beneficial for property investors in Mali Lošinj, as the popularity of short-term rentals continues to rise, offering lucrative opportunities for rental income.
Sources: Lošinj Hotels & Villas, DZS, The Collection Mags
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6) Korčula Town is gaining interest for its rich history and growing cultural tourism, boosting property appreciation potential
Korčula Town on Korčula Island is becoming a hotspot for property appreciation, and there are several reasons for this trend. One of the main factors is the rising number of tourists visiting the island. In 2024, there was a 3% increase in tourism compared to 2023, with 183,273 tourists exploring the island. This increase is particularly significant for cultural tourism, as many visitors are drawn to the island's rich history and cultural events.
Another reason for the growing interest in Korčula Town is the expansion of cultural festivals and events. The town has been hosting various cultural happenings, such as the Aminess Wine & Gourmet Nights project, which attracts international guests and adds to the town's cultural charm. Additionally, media coverage has highlighted the appeal of Korčula Town's historical sites and cultural heritage, including its reputation as the alleged birthplace of Marco Polo, which attracts history enthusiasts.
Moreover, the Croatian government's initiatives to promote cultural tourism have played a role in enhancing the town's appeal. Efforts like developing bicycle routes and promoting sustainable living communities contribute to the town's cultural allure. The growth of cultural tourism-related businesses, such as museums and galleries, further indicates a rising interest in exploring the island's cultural heritage.
Sources: Total Croatia News, Total Croatia News
7) Cres Town on Cres Island is gaining interest with eco-tourism boosting its appeal and property values
Cres Town on Cres Island is becoming a hot spot for real estate interest, and it's largely thanks to the rise of eco-tourism. In recent years, Croatia has seen a significant increase in foreign tourist arrivals, with a 10.2% rise noted in October 2024. This uptick in tourism is a clear sign that more people are discovering and wanting to visit places like Cres Island.
The island is making a name for itself by embracing clean energy and sustainable practices. Local businesses are switching to renewable energy sources, which not only helps the environment but also attracts eco-conscious tourists. This shift is part of a broader strategy by Croatia to promote sustainable tourism, spreading visitors throughout the year and across different regions to protect natural and cultural resources.
Moreover, Cres has gained international recognition for its sustainable tourism efforts. It was included in the Green Destinations Top 100 Stories list for 2024, which has likely boosted its media coverage and public awareness. This kind of recognition helps put Cres on the map as a desirable eco-tourism destination, drawing more visitors and potential property buyers.
Sources: Turističke Priče, Travel and Tour World, Clean Energy Islands, Euronews
8) Stari Grad on Hvar Island is gaining interest for its UNESCO World Heritage status, boosting property values
Stari Grad on Hvar Island is becoming a sought-after market largely due to its UNESCO World Heritage status, which has a significant impact on property values. This status often leads to increased demand for real estate, as seen in other UNESCO-listed sites globally, where properties appreciate in value due to their cultural significance.
The Stari Grad Plain, a UNESCO World Heritage Site, attracts a steady flow of tourists interested in its historical and cultural significance. This influx of visitors boosts the local economy and increases the appeal of investing in the area. Additionally, the development of luxury accommodations and high-end restaurants in Stari Grad indicates a trend of high-end investment, further enhancing its market appeal.
Historical data suggests that property values in Stari Grad have been on the rise, particularly since its UNESCO designation. This trend is supported by the renovation of historic buildings into luxury hotels, which reflects a growing interest from buyers and investors. Moreover, media coverage often highlights the economic benefits of UNESCO status, drawing more attention to the area.
Sources: Total Croatia News, World Heritage Site, Visit Hvar, Croatia Week
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) Bol on Brač Island is booming with rising property values due to its popularity among windsurfing enthusiasts
Bol on Brač Island has been experiencing a real estate boom, largely due to its growing popularity among windsurfing enthusiasts. This trend has been particularly noticeable since 2023 and 2024, when the island's reputation as a top windsurfing destination began to solidify.
One of the main reasons for this boom is the rising property prices in Bol, especially for properties near the famous Zlatni Rat beach, a hub for windsurfing activities. The demand for real estate has been increasing, with many holiday apartments and villas being sold to both locals and international buyers. This surge in demand is closely linked to Bol's growing reputation as a premier windsurfing destination.
Additionally, the island has seen a significant increase in tourist arrivals, particularly during the summer months when windsurfing competitions and events are held. The expansion of windsurfing schools and facilities has further supported this influx, catering to both beginners and experienced surfers. Media coverage highlighting Bol as a top windsurfing destination has also played a crucial role in attracting more visitors and investors.
Sources: Panorama Scouting, Split.gg, Croatia Property Sales
10) Vrboska on Hvar Island is gaining interest for its picturesque setting and tranquil lifestyle, driving property demand
Vrboska on Hvar Island is truly a hidden gem, and its increasing property demand is a testament to its picturesque setting and tranquil lifestyle. In recent years, particularly in 2023 and 2024, there has been a noticeable rise in interest from international buyers, which has contributed to the trend of rising property values. This interest is often driven by the charm and tranquility of the area, appealing to those seeking a more laid-back lifestyle.
The overall trend of increasing real estate transactions on Hvar Island further indicates a growing interest in the island's properties. This can be attributed to the island's natural beauty, rich history, and improving tourist infrastructure. Vrboska, with its picturesque harbor, limestone houses, and ancient fortress, has been featured in travel guides and blogs, attracting more visitors and potential buyers.
Moreover, the rise in short-term rental demand, particularly for pet-friendly rentals, shows that Vrboska is becoming a popular destination for short-term stays. This trend is supported by VRBO statistics showing a significant increase in pet-friendly short-term rentals year over year. Social media platforms and travel blogs frequently showcase Vrboska's beauty and lifestyle, further promoting the area and attracting more visitors and potential buyers.
Sources: Frank About Croatia, New Silver, The Common Wanderer
11) Sali on Dugi Otok is attracting interest for its sustainable tourism potential and growing real estate investment opportunities
Sali on Dugi Otok has been gaining popularity for its potential in sustainable tourism, which has led to increased real estate investment opportunities. One of the key reasons is the rising number of eco-friendly accommodations in the area. Hotels like Hotel Sali and Hotel Lavanda offer environmentally conscious options with beautiful sea views, attracting eco-minded travelers.
Another factor is the growing interest in eco-tourism among travelers to Croatia. Many visitors are now seeking out eco-friendly accommodations and activities, and platforms like Ecobnb are highlighting these options in Dugi Otok. This trend suggests that more tourists are likely to visit the area, boosting its appeal as a sustainable destination.
Additionally, the natural beauty and tranquility of Sali make it an attractive location for real estate investment. Real estate agents have reported rising property inquiries, indicating a growing demand for properties in this serene and picturesque area. This increased interest is further supported by the media coverage highlighting Sali as an emerging eco-tourism destination.
Sources: Booking.com, Ecobnb
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12) Pag Town on Pag Island is gaining attention for its vibrant nightlife, attracting younger buyers and investors
Pag Town on Pag Island has become a hot market, and it's largely because of its vibrant nightlife scene. In recent years, property prices in Pag Town have surged, with a notable increase of nearly 14% in 2023. This rise is driven by the growing demand from younger buyers and investors who are drawn to the island's lively nightlife, especially in areas like Novalja and Zrće Beach.
The number of real estate transactions in Pag Town has also increased significantly. This uptick reflects the heightened interest in the area, as many properties are being snapped up by individuals and companies eager to capitalize on the island's bustling nightlife. The demographic data supports this trend, showing a younger population moving to Pag Town, attracted by its vibrant culture and entertainment options.
Moreover, the growth in nightlife venues and events has been substantial. Zrće Beach has become a hub for electronic music festivals, drawing big-name DJs and festival promoters. This has cemented Pag Island's reputation as a top nightlife destination, further enticing younger visitors and investors.
Sources: Explore Croatia, Novalja Local, Camping Šimuni
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.
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