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Buying a property in Dubrovnik: a complete guide

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property investment Dubrovnik

Yes, the analysis of Dubrovnik's property market is included in our pack

Considering buying a property in Dubrovnik? You're not alone!

Many people find Dubrovnik's medieval beauty enchanting and fantasize about owning a historic villa or a modern apartment in this city.

Still, would it be a smart investment? Are property prices increasing in Dubrovnik? Is it expensive? Is it better to invest in the Old Town or Lapad? What are the property taxes? Can I get a very good rental yield? Where?

We know the answers.

The Investropa team has done their homework on this market. As a matter of fact, we've organized all our findings in a pack. Get it now.

In the lines below, we will share some of this knowledge.

How's the real estate market in Dubrovnik?

Is the property market on an upward trend or a downward trend? Let's examine the data.

Property types

In Dubrovnik, you can find various types of properties for sale.

These include charming historic homes nestled within the city's ancient walls, modern apartments with stunning sea views along the coastline, cozy villas surrounded by lush landscapes, and spacious plots of land suitable for building your dream home.

Whether you're looking for a piece of history, a comfortable apartment, a serene villa, or a blank canvas to create your own space, Dubrovnik offers a diverse range of property options to suit different preferences and lifestyles.

What's better: buy or rent?

(If you're keeping it for yourself and not renting it)

If you're considering settling in Dubrovnik, the stunning Croatian city on the Adriatic Sea, you might be weighing the options of buying a home or opting for a rental property.

Without a doubt, it's better to buy if you want to have a long-term investment that will increase in value over time.

One data can help us make a decision - the price-to-rent ratio. You can think of it as the time it takes for rental income to equal the property's current purchase price.

According to Numbeo, the property price-to-rent ratio in Dubrovnik is around 36.88, which is significantly above the world average.

It shows that it's quite expensive to purchase a home in Dubrovnik. However, it might still be worth it if property prices increase in value.

Property pricing in Dubrovnik

On average, according to the last data from Croatian Bureau of Statistics, buying a property in Dubrovnik would cost you around $3,900 per square meter.

It's just an average. The value of a square meter for an apartment in Dubrovnik Old Town might differ from a villa in Lapad. We actually offer a more in-depth analysis in our pack for buying property in Dubrovnik and in Croatia.

To put things in perspective, it means that, instead of buying an apartment in Paris or London, you can afford 3 properties in Dubrovnik.

Also, housing prices in Dubrovnik are 44% cheaper than in the Croatian Islands.

The most expensive neighbourhoods in Dubrovnik are probably Lapad, Ploce, and Babin Kuk, while the cheapest are likely to be on the outskirts of the city.

Dubrovnik Property Price per Square Meter


First and foremost, it's crucial to mention that Croatia is now a country with considerable stability. The last Fragile State Index that has been reported for this place is 49.3.

This is important to remember when wondering if it's a good investment to buy a property in Dubrovnik.

Moreover, Croatia's economy is expected to soar by 11% in the coming 5 years, resulting in an average GDP growth rate of 2.2% (IMF forecasts).

If you want to invest in real estate in Dubrovnik it's a good thing because, in a growing economy, citizens experience rising incomes that allow them to invest in real estate, either for personal use or as a profitable asset, contributing to the increased demand for properties.

Also, in Croatia, the average GDP per capita has changed by 20.6% over the last 5 years. Very few countries have achieved superior results.

This data is a positive signal - housing prices in Dubrovnik might soar in 2024 and after that.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Croatia right now.

Buying property in Dubrovnik

It can be difficult to buy property in Dubrovnik due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Dubrovnik and in Croatia.

Buying process

Within our pack, we've covered the entire buying process extensively. This includes a detailed breakdown of prices and yields based on the area, advice on negotiating prices, and information about obtaining a mortgage.

Now, we're providing you with a simplified version.

This is the step-by-step process to purchase a property in Dubrovnik:

  1. Research the market and find a suitable property in Dubrovnik's exclusive coastal areas.
  2. Hire a local real estate agent familiar with Dubrovnik's regulations.
  3. Review the "Uvjerenje o Namjeni" (Certificate of Intended Use) to verify property usage compliance.
  4. Make an offer and negotiate the price with the seller.
  5. Sign a "Predugovor" (preliminary contract) and pay a deposit (usually 10% of the property price).
  6. Conduct due diligence, including checking the "Zemljišne Knjige" (Land Registry) for ownership and encumbrances.
  7. Secure financing or funds for the purchase.
  8. Transfer funds to a designated "Depozitni Račun" (escrow account).
  9. Finalize the sales contract with a notary public and sign it in their presence.
  10. Pay the remaining balance and property transfer taxes to the seller.
  11. Register the property with the "Zemljišne Knjige" (Land Registry) to transfer ownership officially.
  12. Receive the property deed ("Vlasnički List") and take possession of the property in Dubrovnik.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Croatia.

Make a profitable investment in Dubrovnik

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buying property in Dubrovnik

Where to find a property

Check out these websites to find properties in Dubrovnik.

  • Real Estate Croatia - Provides real estate listings and services in Croatia with a focus on new developments and luxury properties near the sea.
  • Indomio - A mobile-friendly real estate portal in Croatia, offering property listings with advanced filters and a map-based search feature.
  • CroEstate - A real estate portal in Croatia offering a wide range of properties for sale and rent, including seafront properties, villas, apartments, and land plots.
  • Century 21 - A comprehensive real estate portal dedicated to facilitating property transactions in Croatia.
  • Re/max - A leading real estate company that provides a wide range of property services, including buying, selling, and leasing residential and commercial properties.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Croatia.

What you can get

As mentioned before, the average price per sqm in Dubrovnik is $3,900. A 1-bedroom property of 60 square meters would cost approximately $234,000, and a 2-bedroom of 85 square meters would be around $332,000.

However, prices will differ based on the attributes of the property and its specific location.

Prime property locations in Dubrovnik tend to come with higher price points. In Ploce, a house might be around $740,000, while a condominium in Lapad could be priced at $410,000.

Some locations are not as expensive. You may come across a property in Župa Dubrovačka for $180,000 or a property in Slano for just $150,000.

Find a more detailed breakdown in our full pack for buying property in Croatia.

Risks and pitfalls

Here are the main pitfalls when buying a property in Dubrovnik, Croatia:

  • Zoning regulations: Navigate strict zoning laws, which may limit property development or usage.
  • Foreign buyer restrictions: Verify eligibility and understand the rules for non-Croatian citizens purchasing property.
  • Coastal property restrictions: Special permits may be required for purchasing property near the coastline.
  • Dubrovnik Summer Festival: Nearby events can impact property accessibility and rental potential.
  • Earthquake risk: Assess the seismic vulnerability of the area and potential insurance costs.
  • Adriatic microclimate: Consider the effects of coastal weather on property maintenance and wear.
  • Cultural heritage regulations: Ensure compliance with preservation laws when renovating historic properties.
  • Dubrovnik Airport expansion: Investigate any planned airport expansions that may affect property value or noise levels.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

real estate Croatia

Everything you need to know is included in our Croatia Property Pack

Living in Dubrovnik

Living in Dubrovnik offers an idyllic Mediterranean lifestyle with stunning beaches, crystal-clear waters, historic architecture, and a vibrant cultural scene.

Cost of living

The cost of living in Dubrovnik is generally higher than in other parts of Croatia. Prices for everyday items such as food, housing, and transportation can be more expensive than in other Mediterranean cities.

Here are some examples to better understand the cost of living in Dubrovnik:

  • Rent for a one-bedroom apartment in Ploče neighborhood with a sea view: $1,500/month.
  • Monthly public transportation pass with Libertas: $40.
  • "Dalmatinska pašticada" dinner for two at a local konoba: $80.
  • "Pelinkovac" at a bar: $4.
  • Groceries at Gundulićeva Poljana market: $130/week for a family of four.
  • Basic utilities for an 85m² apartment with HEP: $100/month.
  • Ticket to a performance at Dubrovnik Summer Festival: $30.
  • "Burek sa sirom" at a local bakery: $3 each.

Neighbourhoods and spots

Since we aim to present information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Dubrovnik. For yields, prices and rents, check our property pack.

Neighborhood Description Strengths Weaknesses


Ploče is a vibrant neighborhood located close to the Old Town, offering stunning views of the Adriatic Sea. It is well-known for its beautiful beaches and a lively nightlife scene.

Scenic views, proximity to the Old Town, lively nightlife, beautiful beaches.

Can be crowded with tourists, higher prices, limited parking options.


Lapad is a family-friendly neighborhood with a relaxed atmosphere and plenty of green spaces. It has a long promenade along the coast, lined with restaurants and cafes.

Family-friendly, peaceful, green spaces, coastal promenade, restaurants and cafes.

Less lively nightlife, limited shopping options, fewer cultural attractions.


Gruž is the main port area of Dubrovnik, bustling with activity and offering a local experience with its market and shops. It is well-connected to other parts of the city.

Main port area, bustling market, good transportation links.

No beaches, can be noisy, limited green spaces.


Montovjerna is a residential neighborhood with a mix of modern apartments and traditional houses. It offers a peaceful environment and easy access to the city center.

Quiet, residential, easy access to the city center.

Limited tourist attractions, fewer dining options, less vibrant nightlife.

Old Town

The Old Town is the historic heart of Dubrovnik, surrounded by medieval walls and narrow cobblestone streets. It is a UNESCO World Heritage site and offers numerous cultural attractions and charming architecture.

Historic charm, cultural attractions, UNESCO World Heritage site.

Can be crowded with tourists, limited parking options, higher accommodation prices.

Babin Kuk

Babin Kuk is a resort area located on the Lapad Peninsula, known for its beautiful beaches and high-end hotels. It offers a variety of water sports and recreational activities.

Resort area, beautiful beaches, water sports activities.

Can be crowded during peak tourist season, higher prices, limited budget accommodation.


Šipčine is a residential neighborhood with a mix of apartments and houses. It provides a peaceful living environment and is relatively close to the city center.

Quiet, residential, relatively close to the city center.

Limited tourist amenities, fewer restaurants and shops.

Gornji Kono

Gornji Kono is a hilly area offering picturesque views of the city and the sea. It features charming stone houses and a tranquil atmosphere.

Scenic views, tranquil atmosphere, charming stone houses.

Less convenient for walking, limited public transportation, hilly terrain.

Life in Dubrovnik

The economy of Dubrovnik is largely based on tourism, with the city's old town being a UNESCO World Heritage Site, as well as a popular filming location for films and television shows. Additionally, the city has a strong fishing industry, as well as a few other industries such as shipbuilding and textiles.

What expats usually like the most about Dubrovnik is its stunning views of the Adriatic Sea, and its vibrant culture and history.

Access to healthcare in Dubrovnik is generally good, with a number of public and private hospitals and clinics providing a range of medical services.

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Renting out in Dubrovnik

If you're interested in buying property not to live in, but to rent out and generate income, this section is for you.


Tenant Profiles in Dubrovnik

According to the data reported by Wikipedia, the home ownership rate in Croatia is 91%, which is very high.

It is probably a bit less in Dubrovnik which is quite different from the rest of the country.

If you decide to buy and rent out to long-term tenants, you should target professionals, families, and retirees who are looking for a quieter lifestyle in Dubrovnik. Short-term rentals are also popular in the area, targeting tourists and travelers looking for a beachfront holiday.

Here is a little summary table we've made for you.

Property type and area Profiles of potential tenants What they are looking for Expected monthly rent in $

Apartment in Old Town

Tourists, expats

Historic living, city center

$800 - $1,500

Villa in Lapad

Families, vacationers

Residential area, beach access

$1,200 - $2,500

Studio in Ploce

Students, young professionals

City views, convenient location

$400 - $800

Condo in Gruz

Young couples, urban dwellers

Harbor views, modern living

$500 - $1,000

2-Bedroom Apartment in Babin Kuk

Families, retirees

Quiet residential living, beach proximity

$600 - $1,200

High-rise Apartment in Montovjerna

Young professionals, commuters

Modern amenities, accessibility

$500 - $1,000

1-Bedroom Apartment in Gornji Kono

Singles, professionals

Convenient location, local atmosphere

$300 - $600

Rental yields

As of today, rental yields in Dubrovnik are floating around 2 or 3%. It's low. A good rental yield is typically considered to be around 7% or higher.

The best rental yields in Dubrovnik come from properties located in the Old Town or within walking distance to the beach. These areas are in high demand by tourists and have limited availability, making them ideal for rental investment.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Dubrovnik are taxed at 10%, which is very advantageous.


You could also decide to rent short-term to tourists looking to explore the historic city of Dubrovnik, as well as business travelers coming to attend conferences and other events. Additionally, you could rent to families looking for a summer vacation spot in the sun.

If you decide to go with that option, look for properties in the Old Town area and the Lapad area. Both of these districts have a high demand for short-term rentals and are close to the city centre.

Currently, there are approximately 5,000 active Airbnb listings in Dubrovnik, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $131.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Dubrovnik can make around $2200 per month. Also, the average occupancy rate is estimated at 75%.

Is it worth buying real estate in Dubrovnik then?

Buying a property in Dubrovnik can be a fantastic investment if you're in it for the long haul. The city's property market has shown stability, and Croatia's robust economy suggests property values may continue to rise.

It's a prime destination for those seeking a Mediterranean lifestyle with its stunning beaches, historic charm, and vibrant culture. If you plan to live there or enjoy the property personally, it's an attractive choice.

However, it's not all sunshine and sea views. Dubrovnik's property market has its challenges. High upfront costs, low rental yields, and strict zoning laws can deter investors seeking quick returns.

Additionally, the city's economy relies heavily on tourism, making it susceptible to global events. The cost of living is relatively high, which may affect your overall financial situation.

It's crucial to weigh these factors carefully and consider your long-term goals before taking the plunge. While Dubrovnik offers a slice of Mediterranean paradise, it may not be the right fit for everyone's investment strategy.

Make sure you understand the real estate market in Dubrovnik

Don't rush into buying the wrong property in Croatia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

real estate market Dubrovnik

The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.