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Property prices in Dubrovnik have been climbing steadily, with apartments now averaging €4,151 per square meter and houses at €3,523 per square meter as of June 2025. As we reach mid-2025, Dubrovnik remains Croatia's most expensive property market, with prices having increased by approximately 60% over the past five years, driven by strong foreign investment and its status as a UNESCO World Heritage site.
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Property prices in Dubrovnik continue to rise as of June 2025, with apartments averaging €4,151 per square meter and houses at €3,523 per square meter, representing a 5% increase from 2024. Forecasts predict prices will increase by another 3-7% through 2025, driven by limited supply, strong tourism, and growing foreign investment following Croatia's adoption of the euro.
| Property Type | Average Price per m² (2025) | Year-over-Year Change | 5-Year Growth |
|---|---|---|---|
| Apartments | €4,151 | +5% | +60% |
| Houses | €3,523 | +5% | +55% |
| Luxury Villas | €5,000-€10,000 | +10-15% | +70% |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are the current property prices in Dubrovnik as of June 2025?
Property prices in Dubrovnik remain the highest in Croatia, with clear distinctions between property types and locations.
As we reach mid-2025, apartments in Dubrovnik average €4,151 per square meter, while houses are slightly more affordable at €3,523 per square meter. The Dubrovnik-Neretva County overall averages €3,705 per square meter for all residential properties, marking a 5% increase from €3,545 in 2024.
The Old Town commands the highest premiums, with properties often exceeding €5,000 per square meter due to their historic value and UNESCO World Heritage status. Coastal areas with sea views in neighborhoods like Lapad and Gruž typically range from €4,000 to €4,500 per square meter.
Luxury villas represent the top tier of the market, with prices ranging from €5,000 to €10,000 per square meter depending on location, views, and amenities. New construction apartments with modern amenities and energy-efficient features are seeing particularly strong demand, often priced 10-15% above older properties.
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How much have property prices increased in Dubrovnik lately?
Property prices in Dubrovnik have shown remarkable growth both in recent years and over the longer term.
From 2023 to 2024, prices in Dubrovnik-Neretva County increased by approximately 5%, continuing the upward trend that has characterized the market. This follows even more dramatic increases in previous years, with some areas seeing double-digit annual growth during 2021-2022.
Over the past five years (2020-2025), the transformation has been striking. Apartments have surged from approximately €2,400 per square meter in 2020 to over €4,000 in 2024, representing a rise of more than 60%. This outpaces many other European coastal destinations.
The national context is equally impressive, with Croatian property prices nearly doubling since 2019, showing a cumulative increase of about 96% (50.8% when adjusted for inflation). The national average price per square meter for flats rose by 33.3% just from 2022 to 2024.
As of June 2025, the Croatian Housing Index stands at 205.01 points, up from 202.19 in the third quarter of 2024, indicating continued momentum in the market despite some signs of moderation in the rate of increase.
Which neighborhoods in Dubrovnik are experiencing the fastest price growth?
Not all areas of Dubrovnik are experiencing equal price appreciation, with certain neighborhoods standing out as hotspots for growth.
The Old Town leads the pack with the highest price growth, driven by luxury housing projects and intense international demand. Limited supply in this UNESCO-protected area means any available property commands premium prices, often seeing year-over-year increases of 10-15%.
Coastal neighborhoods including Lapad and Gruž are experiencing moderate to high growth due to their proximity to the sea, tourist amenities, and new development projects. These areas benefit from a perfect combination of accessibility, views, and modern infrastructure.
| Neighborhood | Growth Level | Average Price/m² | Key Growth Drivers |
|---|---|---|---|
| Old Town | High (10-15%) | €5,000+ | UNESCO status, luxury demand, extreme scarcity |
| Lapad | Moderate-High (7-10%) | €4,200 | Sea views, new developments, tourist infrastructure |
| Gruž | Moderate-High (6-9%) | €3,800 | Port redevelopment, improved transport links |
| Ploče | Moderate (5-7%) | €4,000 | Proximity to Old Town, luxury developments |
| Babin Kuk | Moderate (5-7%) | €3,500 | Resort area, family-friendly, new hotels |
Emerging areas like Cavtat, near the airport, and the Elaphiti Islands are also seeing increased interest from buyers seeking exclusivity and privacy, with prices rising 8-12% annually in these locations.
Which property types are seeing the biggest surge in Dubrovnik?
The Dubrovnik market shows clear preferences for certain property types that are driving the overall price increases.
Luxury villas and high-end apartments are appreciating faster than standard housing, with annual increases of 10-15%. This segment is fueled by wealthy foreign buyers and the lucrative short-term rental market, where nightly rates for premium properties can exceed €1,000 during peak season.
Properties with sea views command premiums of 30-50% over similar properties without views. Historic properties in the Old Town that have been renovated with modern amenities are particularly sought after, often selling within days of listing.
New construction is another hot segment, with modern apartments featuring smart home technology and energy-efficient systems seeing price increases of 8-12% annually. Building land has become increasingly scarce and expensive, with prices for plots near the sea or with development potential surging by 15-20% per year.
The buy-to-let investment property segment remains robust, with smaller units (30-50m²) suitable for tourist rentals experiencing steady appreciation of 5-8% annually due to Dubrovnik's thriving tourism sector.
What are the property price forecasts for Dubrovnik in 2026?
Looking ahead to 2026, market analysts predict continued but moderated growth in Dubrovnik's property market.
For 2025, prices are expected to rise by 3-7% over 2024 levels, with prime locations and luxury properties at the higher end of this range. This means a €300,000 property today could be worth between €309,000 and €321,000 by year's end.
Moving into 2026, the consensus among experts is for annual price increases to stabilize at 3-5%, reflecting a maturing market. The Croatian real estate market overall is projected to grow by 4.76% annually through 2029, reaching a market volume of €325.90 billion.
Several factors support these forecasts: continued infrastructure improvements, Croatia's stable EU membership, sustained tourism growth, and ongoing foreign investment. However, growth may be tempered by affordability constraints for local buyers and potential regulatory changes regarding short-term rentals.
The luxury segment is expected to remain the strongest performer, with properties in the Old Town and prime coastal locations potentially seeing appreciation above the market average.
How is the current mortgage market affecting Dubrovnik property prices?
The mortgage market plays a crucial role in shaping property demand and prices in Dubrovnik.
As of June 2025, mortgage interest rates in Croatia range from 3-4%, still relatively low by historical standards but higher than the ultra-low rates of 2020-2022. This increase has somewhat cooled demand from domestic buyers who rely on financing.
Foreign buyers, who make up approximately 40% of the Dubrovnik market, are less affected by local mortgage conditions as many purchase with cash or secure financing from their home countries. EU citizens benefit from easier access to Croatian mortgages following the country's euro adoption.
| Buyer Type | Typical Financing | Down Payment Required | Impact on Market |
|---|---|---|---|
| Croatian Citizens | Local mortgages (3-4%) | 20% | Moderate - affected by rate increases |
| EU Citizens | Local or home country | 20-30% | Strong - euro adoption helps |
| Non-EU Buyers | Cash or home financing | Often 100% cash | Very strong - less rate sensitive |
The trend toward cash purchases, particularly in the luxury segment, has helped insulate Dubrovnik's market from mortgage rate fluctuations. Approximately 76% of property purchases in the premium segment are made without local financing.
What impact has Croatia's euro adoption had on Dubrovnik's property market?
Croatia's adoption of the euro in January 2023 has significantly influenced Dubrovnik's real estate market.
The currency transition has made transactions considerably easier for EU buyers, eliminating exchange rate risks and simplifying price comparisons with other eurozone destinations. This has led to increased interest from German, Austrian, Italian, and French buyers who previously may have been deterred by currency concerns.
Property prices saw an immediate boost following euro adoption, with some analysts attributing 2-3% of the price growth directly to the currency change. The psychological impact has been equally important, with Croatia now perceived as a more stable and integrated EU member.
The euro has also facilitated easier financing options for foreign buyers and increased price transparency. Tourism has benefited as well, with visitor numbers up significantly, further driving demand for investment properties and vacation homes.
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How does foreign investment influence property prices in Dubrovnik?
Foreign investment is a major driver of Dubrovnik's property market dynamics.
Currently, international buyers account for approximately 40% of all property transactions in Dubrovnik, with EU citizens making up the majority. Slovenians have recently overtaken Germans as the top foreign buyers, followed by Austrians, Italians, and Czechs.
This foreign demand particularly impacts the luxury segment and properties suitable for short-term rentals. With 4,503 active Airbnb listings in Dubrovnik as of September 2024 and a median occupancy rate of 81%, investors are drawn by potential rental yields.
The influence extends beyond direct purchases. Foreign investment has driven up standards for property amenities and finishes, leading to a general improvement in housing stock quality. It has also contributed to gentrification in certain areas, making some neighborhoods less affordable for locals.
Looking ahead, Croatia's planned OECD accession in 2026 could further liberalize the market, potentially allowing Americans and other non-EU citizens to purchase property more easily, which would likely add upward pressure on prices.
How do Dubrovnik's property prices compare to other Croatian coastal cities?
Dubrovnik maintains its position as Croatia's most expensive property market by a significant margin.
As of 2025, Dubrovnik's average apartment price of €4,151 per square meter is 37% higher than Split (€3,024/m²), more than double that of Rijeka (€1,793/m²), and 68% above Zadar (€2,472/m²). Only Istria comes close, with average prices around €3,750 per square meter.
| City | Avg. Apartment Price (€/m²) | Avg. House Price (€/m²) | Premium vs National Average |
|---|---|---|---|
| Dubrovnik | €4,151 | €3,523 | +76% |
| Split | €3,024 | €2,879 | +28% |
| Istria | €3,750 | €2,863 | +59% |
| Zadar | €2,472 | €1,730 | +5% |
| Rijeka | €1,793 | €1,422 | -24% |
This price premium reflects Dubrovnik's unique combination of UNESCO World Heritage status, limited developable land, intense tourism pressure, and international recognition. While other coastal cities are experiencing growth, none match Dubrovnik's price levels or prestige.
What role does tourism play in driving Dubrovnik's property prices?
Tourism is arguably the single most important factor influencing Dubrovnik's property market.
With over 1.5 million tourists visiting annually and the city's global fame boosted by cultural phenomena like Game of Thrones, demand for short-term rental properties remains extremely strong. The average daily rate for vacation rentals stands at €136, with luxury properties commanding €500-€1,000+ per night in peak season.
This tourism-driven demand has created a dual market: properties suitable for tourist rentals command premiums of 20-30% over those suited only for residential use. The short-term rental market's profitability, with potential gross yields of 6-8% in prime locations, attracts both domestic and international investors.
The year-round tourism season, extending beyond the traditional summer months, provides steady rental income potential. This has led to increased competition for properties in tourist-favored areas, driving prices higher.
However, this tourism dependence also creates vulnerabilities. Any global events affecting travel could impact property values, and the government is considering regulations on short-term rentals that could affect investment returns.
What risks could prevent property prices from rising in Dubrovnik?
While the outlook remains positive, several factors could potentially slow or reverse price growth.
Regulatory changes pose the most immediate risk. The Croatian government is actively considering restrictions on short-term rentals to address housing affordability concerns. Any significant limitations on Airbnb-style rentals could reduce investor demand and impact property values by 10-15%.
Economic factors also present risks:
- Rising inflation and living costs are reducing local purchasing power
- Higher mortgage rates (now 3-4% versus previous lows) are limiting buyer financing capacity
- Eurozone economic uncertainties could impact foreign investment
- Potential global recession could reduce tourism and investment demand
Environmental and planning restrictions add another layer of complexity. Large development projects face increasing opposition due to environmental and heritage concerns. The Srdj hill development controversy exemplifies how UNESCO status and environmental protections can limit new supply.
Additionally, demographic trends show young Croatians struggling with affordability, potentially leading to political pressure for market interventions. Any introduction of property taxes targeting foreign owners or second homes could dampen demand.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
As we reach mid-2025, Dubrovnik's property market continues its upward trajectory with prices having increased 5% year-over-year and 60% over five years. Yes, property prices are going up in Dubrovnik, driven by limited supply, strong tourism, foreign investment, and Croatia's successful euro adoption.
Looking ahead, while growth is expected to moderate to 3-7% annually, the fundamental drivers remain strong. Dubrovnik's unique position as a UNESCO World Heritage site with limited developable land ensures continued scarcity, while its appeal to international buyers and tourists provides steady demand. However, potential regulatory changes and affordability concerns warrant careful consideration for prospective buyers.
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.
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Sources
- Expat in Croatia - Residential property prices in Croatia's biggest cities
- Croatia Week - Asking house prices in Croatia rise 47% over three years
- Real Estate Earth - Croatia Real Estate Market 2025
- Global Property Guide - Croatia's Residential Property Market Analysis
- The Dubrovnik Times - Dubrovnik Real Estate Market Continues to Soar
- Investropa - Property prices will rise in Dubrovnik in 2025
- Investropa - 11 statistics for the Croatia real estate market in 2025
- Statista - Real Estate Croatia Market Forecast
- Investropa - 14 strong forecasts for real estate in Croatia in 2025
- Croatia Real Estate Insight - Ultimate Guide to the Croatian Real Estate Market 2025