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Yes, the analysis of Dubrovnik's property market is included in our pack
Thinking about buying a 3-bedroom apartment in the Old Town of Dubrovnik? It’s a fantastic area, 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 neighborhoods like Lapad or Gruž 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 Dubrovnik in 2025?
Yes, property prices in Dubrovnik are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Dubrovnik remains one of the most attractive cities in Croatia for both domestic and international investors.
Sure, there are some economic challenges like inflation and rising interest rates, but the main drivers behind Dubrovnik’s price growth remain strong.
Demand, especially in the prime coastal areas, continues to outstrip supply, making any major price dips unlikely. Additionally, Dubrovnik's status as a UNESCO World Heritage site and a popular tourist destination keeps drawing in buyers from around the world.
Signals pointing to a property price increase in Dubrovnik
Here are some factors suggesting prices could increase:
The limited availability of land for new developments in Dubrovnik, particularly in the historic Old Town and coastal areas, is expected to keep supply constrained, driving up property prices as demand remains strong.
Dubrovnik's growing reputation as a luxury destination is attracting high-net-worth individuals and investors, increasing demand for premium properties and pushing up prices in the luxury segment.
The Croatian government's continued investment in infrastructure, including improvements to transportation links and public amenities, is expected to enhance the appeal of Dubrovnik, leading to increased property values.
The rise in remote work and digital nomadism is attracting more international buyers to Dubrovnik, seeking properties with scenic views and a high quality of life, which is likely to boost demand and prices.
Dubrovnik's strong tourism sector, which is expected to recover and grow in 2025, is likely to increase demand for short-term rental properties, driving up prices in the buy-to-let market.
Signals pointing to a property price decrease in Dubrovnik
Here are some factors suggesting prices could fall:
Rising inflation and living costs in Croatia could impact household budgets, potentially reducing the purchasing power of local buyers and affecting demand for properties in Dubrovnik.
Higher mortgage interest rates, which have increased from previous low levels, may make it more difficult for buyers to secure affordable financing, potentially cooling off demand in the broader market.
Economic uncertainties in the Eurozone could impact foreign investment in Dubrovnik's property market, potentially leading to a slowdown in demand from international buyers.
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If property prices go up in Dubrovnik, how much would they increase by?
If real estate prices in Dubrovnik were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in popular tourist destinations like Dubrovnik 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 in the Old Town 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 Dubrovnik 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 Apartment (75 sqm / 807 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Luxury Villa (100 sqm / 1,076 sqft) | €1,000,000 | €1,030,000 | €1,050,000 | €1,070,000 |
| Studio (30 sqm / 323 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
| Seaside Apartment (80 sqm / 861 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Townhouse (150 sqm / 1,615 sqft) | €800,000 | €824,000 | €840,000 | €856,000 |
| 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 Dubrovnik
If real estate prices go up in Dubrovnik, which areas are likely to see the biggest increases?
Today, people who want to move to Dubrovnik are looking for the historic charm combined with modern amenities and a vibrant social scene, which Old Town offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a growing interest in more youthful, lively neighborhoods, and Lapad has really started to gain popularity.
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 Dubrovnik market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Old Town | High | The historic appeal and limited availability of properties make it a prime location, attracting international buyers and driving demand. |
| Lapad | High | Recent development of modern residential complexes and its growing popularity among younger residents and tourists. |
| Gruž | Medium-High | Ongoing port redevelopment and improved transport links are making this area more attractive for investment. |
| Ploče | Medium | Its stunning views and proximity to the Old Town are increasing its desirability, especially for luxury developments. |
| Babin Kuk | Medium-High | New hotel and resort projects are boosting the area's profile, attracting both tourists and investors. |
| Zaton | Medium | The peaceful environment and scenic beauty are drawing more interest from those seeking a quieter lifestyle close to Dubrovnik. |
| Mlini | Medium-High | With new residential and commercial developments, this area is becoming increasingly popular among both locals and expatriates. |
| Cavtat | High | Its picturesque setting and proximity to Dubrovnik Airport make it a desirable location for both holiday homes and permanent residences. |
| Srebreno | Medium-High | Recent commercial developments and its appeal as a family-friendly area are driving up property values. |
| Trsteno | Medium | Known for its botanical gardens and natural beauty, this area is attracting more interest from nature lovers and investors. |
| Šipanska Luka | High | As a tranquil island getaway, it is becoming increasingly popular among those seeking exclusivity and privacy. |
-The best areas to buy a property in Dubrovnik
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Dubrovnik?
In 2025, Dubrovnik real estate trends focus on tech-smart, energy-efficient apartments, historic properties with modern amenities, homes with sea views, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Historic Properties with Modern Amenities:
Dubrovnik's rich history and architecture make its historic properties highly sought after. When combined with modern amenities, these properties attract both investors and tourists, enhancing their value.
- Homes with Sea Views:
Properties offering stunning views of the Adriatic Sea are in high demand. The allure of coastal living and the picturesque landscape significantly boost property values in Dubrovnik.
- Eco-Friendly Buildings with Low Carbon Footprints:
Dubrovnik's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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