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Best areas to buy and invest in property in Dubrovnik

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property investment Dubrovnik

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

The question of 'the best neighborhood to buy a property in Dubrovnik' does not have a one-size-fits-all answer.

Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.

That’s why the article below is covering every intent.

At Investropa, when we write a blog post or when we update our our property pack for Croatia, we want to bring solutions and cover different aims in a clear and organized way.

Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.

To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Dubrovnik into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.

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buying property in Dubrovnik

How is the real estate market in Dubrovnik?

The real estate market in Dubrovnik is currently experiencing a dynamic phase, characterized by growing interest from both local and international buyers.

This surge in demand is not surprising, considering Dubrovnik's unique strengths and allure.

One of the most distinct aspects of Dubrovnik is its rich history and cultural heritage, epitomized by its well-preserved medieval Old Town, a UNESCO World Heritage site. Unlike many other cities, Dubrovnik offers the rare opportunity to live amidst ancient stone walls and baroque buildings, giving residents a sense of living within a living museum.

This historical charm is something you won't find just anywhere, and it's a huge draw for those who appreciate culture and history.

People are drawn to buy in Dubrovnik for several reasons.

The city's stunning Adriatic Sea views, pleasant Mediterranean climate, and renowned culinary scene make it an attractive destination for those seeking a high quality of life in a scenic setting.

Furthermore, the city's growing popularity as a tourist destination, fueled in part by its feature in popular media like "Game of Thrones," enhances its appeal as an investment location.

The buyers in Dubrovnik's real estate market are diverse. You'll find families looking for a permanent residence, professionals seeking holiday homes, and investors aiming to capitalize on the city's thriving tourism industry.

Interestingly, there's a significant interest from foreigners, especially from those in the EU and beyond. They are attracted by the city's blend of historical allure, modern amenities, and the potential for property value appreciation.

Speaking of the market's dynamics, one notable data point is the steady increase in property prices over recent years.

This upward trend is a clear indicator of the market's vitality and the growing demand for property in Dubrovnik.

A unique and positive aspect specific to properties in Dubrovnik is their blend of traditional architecture with modern comforts. Many homes, especially within the Old Town, have been thoughtfully renovated to offer contemporary living standards while preserving their historical character.

This seamless blend of old and new is a rarity and adds an exclusive charm to the properties here.

Looking to the future, there are several reasons why properties in Dubrovnik are expected to gain value.

The city's ongoing popularity as a tourist destination ensures a continuous demand for accommodation, which bodes well for the rental and resale markets.

Additionally, the city's efforts to preserve its cultural and architectural heritage mean that properties in prime locations are limited, thus likely to appreciate in value due to their rarity and uniqueness.

The combination of Dubrovnik's timeless appeal, coupled with its adaptability to modern needs, suggests a bright future for its real estate market.

Top neighborhoods in Dubrovnik to consider for living

Areas in Dubrovnik that are budget-friendly

If you're looking to buy property in Dubrovnik on a budget, there are a few neighborhoods you might want to consider.

Here is a summary table. Below, we will give more details.

Neighborhood Average Price per Sqm Property Types Resident Demographics Strengths Weaknesses
Lapad €3,500 Apartments, Houses Families, Young Professionals Good connectivity, Peaceful, Growing amenities Crowded in tourist season
Gruž €3,000 Old and New Apartments Locals, Expats Vibrant market, Good transport, Local charm Lacks some modern infrastructure
Mokošica €2,500 Newer Apartments, Family Homes Locals, Families, Retirees Affordable, Natural surroundings, Quiet Far from Old Town, Fewer amenities


This area is relatively cheaper because it's a bit away from the crowded Old Town.

Property values in Lapad might rise due to ongoing developments and its proximity to beaches, making it attractive for both residents and tourists. You'll mostly find apartments and some houses for sale in Lapad, with the average price per square meter around €3,500.

The neighborhood is popular among families and young professionals. Its strengths include good connectivity to the city center, a peaceful environment, and a growing number of amenities.

However, it can get crowded during tourist season, which might be a drawback for some.


Known for its port, Gruž is more affordable due to its industrial past, but regeneration projects are transforming it, potentially increasing property values.

The area offers a mix of old and new apartments in Gruž, with prices averaging around €3,000 per square meter. It's a melting pot of locals and expats, appealing to those who prefer a more authentic and less touristy environment.

The strengths of Gruž include its vibrant market, good public transport, and local charm.

The downside is that some parts still lack modern infrastructure and it's a bit further from the beaches.


Located further from the city center, Mokošica offers lower property prices, with averages around €2,500 per square meter.

It's an up-and-coming area, suggesting potential for property value growth, especially as it attracts more residential developments. The properties in Mokošica are mainly newer apartments and family homes.

The area is inhabited primarily by locals, including families and retirees. Its strengths are the affordable living costs, natural surroundings, and quiet residential atmosphere.

However, it's less convenient for frequent travelers to the Old Town and lacks some urban amenities.

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Areas in Dubrovnik that are popular and upscale

When looking to buy property in Dubrovnik, two neighborhoods stand out as upscale and popular choices. They each have their unique character and draw different types of residents.

Neighborhood Average Price per sqm Property Type Resident Profile Pros Cons
Ploče €10,000 Modern apartments, villas Affluent, international buyers Views, exclusivity Steep streets, tourist crowds
Old Town €12,000 Apartments, historic houses Locals, international buyers Historic charm Noise, tourist crowds


Ploče is one of the most upscale neighborhoods in Dubrovnik, known for its breathtaking views of the Old Town and Adriatic Sea.

Properties in Ploče are expensive, mainly due to their prime location and the luxurious amenities they offer. You'll find a mix of modern apartments and traditional villas in Ploče, with an average price around €10,000 per sqm.

The area is favored by affluent buyers, including international investors and celebrities, who seek privacy and exclusivity. Ploče is expected to remain in high demand due to its limited supply of properties and its unmatched views.

However, it's important to note that living here means dealing with steep streets and the hustle of tourist crowds, especially during summer.

Old Town

The Old Town of Dubrovnik is not just a tourist hotspot but also a coveted residential area.

Properties in Old Town are quite expensive, with prices averaging €12,000 per sqm, due to their historical significance and central location. You'll mostly find renovated apartments and medieval houses in Old Town.

The neighborhood attracts a mix of locals and international buyers looking for a unique living experience amidst historic architecture.

The Old Town is expected to keep its charm and value, but living here means navigating through crowds and dealing with noise, especially during tourist season.

Make sure you understand the real estate market in Dubrovnik

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real estate market Dubrovnik

Areas in Dubrovnik that emerge as new hotspots

Let's explore these emerging neighborhoods in Dubrovnik that, according to our local partners and our customers, are getting quite a bit of buzz lately.

Neighborhood Average Price per sqm Property Type Resident Profile Pros Cons
Gruž €6,000 Modern developments Diverse, young professionals Urban landscape, proximity to center Industrial elements
Babin Kuk €7,000 Residential, rental properties Local families, investors Near beaches, new hotels Risk of overcrowding
Zaton €6,500 Holiday homes Nature lovers, families Tranquil, scenic Limited amenities, distant from center


Gruž, historically a less popular area, is now emerging as a trendy neighborhood in Dubrovnik.

Initially known for its industrial and port activities, Gruž has recently seen a surge in modern developments and renovations. The area's growing popularity can be attributed to its more affordable property prices, averaging €6,000 per sqm, and its evolving urban landscape.

Gruž appeals to a diverse crowd, from young professionals to retirees, drawn by its new amenities and proximity to the city center. While prices in Gruž are cheaper compared to traditional hotspots, they are expected to rise as the neighborhood continues to develop.

Gruž still retains some industrial elements, which might not appeal to everyone, but its transformation is undeniable, making it a smart choice for long-term investment.

Babin Kuk

Once a quiet area, Babin Kuk is quickly becoming a sought-after neighborhood.

Its transformation from a mainly residential area to a trendy spot is driven by recent developments in tourism and hospitality. The average property price in Babin Kuk is about €7,000 per sqm, offering a more affordable alternative to the city's central areas.

It attracts a mix of local families and investors looking for rental properties, thanks to its proximity to beaches and newer hotel complexes.

Babin Kuk is likely to keep gaining popularity, especially among those who seek a balance between tranquility and access to modern facilities. However, its rapid development could lead to increased traffic and a change in the neighborhood's character.


Zaton is a charming bay area that has been gaining attention for its peaceful setting and natural beauty.

Originally a quiet fishing village, it has evolved into a trendy spot for those seeking a serene lifestyle away from the city's bustle. Properties in Zaton are relatively more affordable, with an average price of €6,500 per sqm.

The area attracts nature lovers, families, and individuals looking for holiday homes. Zaton's popularity is expected to grow, especially among those who value its tranquility and scenic surroundings.

However, its distance from the city center and limited amenities might not suit everyone's lifestyle needs.

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buying property in Dubrovnik

Top neighborhoods in Dubrovnik to invest in property

Areas in Dubrovnik with a strong rental demand

If you're considering buying real estate in Dubrovnik for renting it out, these neighborhoods with high demand for rentals should be considered.

Neighborhood Typical Tenants Property Type Average Nightly Rate Rental Yield Tips Weaknesses
Old Town Couples, Small Families Small Apartments, Historical Homes €100-€150 4-5% Focus on traditional features with modern amenities Seasonal tourism, competition, space limitations
Lapad Families, Beach-goers Larger Apartments, Houses €150-€200 3-4% Family-friendly amenities, proximity to beach Off-season demand drop, higher maintenance costs
Ploče Wealthier Couples, Small Groups Luxury Apartments, Villas €200+ 4% Properties with unique features or views High initial investment, competition with luxury hotels

Old Town

In Dubrovnik's Old Town, the rental demand is predominantly driven by tourists and short-term visitors seeking the authentic experience of living in a historic area.

The narrow, cobblestoned streets and proximity to major landmarks like the City Walls and the Stradun make it highly desirable. Properties in Old Town are typically small apartments or renovated historical homes.

You can expect to earn around €100-€150 per night for a one-bedroom apartment in Old Town, with rental yields potentially reaching 4-5%. The tenants are usually couples or small families interested in culture and history. To increase rental income, focus on properties with traditional features and modern amenities.

However, be mindful of the seasonal nature of tourism and the competition from numerous other rentals. Also, the limited space and strict conservation rules can be a challenge for renovations.


Lapad is favored by families and travelers looking for a more relaxed stay, close to beaches and parks.

This area has a consistent demand for rental properties, especially during the summer. The properties in demand in Lapad are larger apartments or houses with outdoor spaces.

Rental income for a three-bedroom apartment in Lapad can range from €150-€200 per night, with yields around 3-4%. The key to success in Lapad is offering family-friendly amenities and proximity to the beach.

However, the off-season demand drops significantly, and maintenance costs for larger properties can be higher.


Ploče is an upscale area known for its stunning views of the Old Town and the Adriatic Sea.

It attracts a wealthier clientele, including couples and small groups. Properties in Ploče are high-end apartments and villas. You can charge premium rates, upwards of €200 per night for a luxury apartment in Ploče, with yields around 4%.

The tenants in Ploče seek luxury and exclusivity, so properties with unique features or spectacular views are more profitable.

However, the initial investment is significantly higher, and the competition with luxury hotels can be intense.

Don't lose money on your property in Dubrovnik

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invest real estate in Dubrovnik

Areas in Dubrovnik where property prices might increase in the future

In these areas in in Dubrovnik you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.

Neighborhood Typical Tenants Property Type Average Nightly Rate Tips Weaknesses
Old Town Tourists, History Enthusiasts Traditional Houses, Modern Apartments €120-€180 Authentic charm with modern conveniences Crowded, potential noise issues
Gruž Cruise Passengers, Budget Travelers Apartments, Small Houses €80-€120 Harbor views, public transport access Lacks historical charm, port noise
Babin Kuk Families, Groups Modern Apartments, Family Homes €100-€150 Pools, proximity to beaches Seasonal demand variation

Old Town

For short-term rentals, the Old Town remains a top choice due to its historical significance and tourist attractions.

Visitors in Old Town are mostly tourists and history enthusiasts who prefer staying in traditional Dalmatian stone houses or modern apartments with easy access to landmarks.

Amenities like Wi-Fi and air conditioning are highly sought after. The average price for one night in a standard apartment is around €120-€180.

To maximize rental income, focus on properties with authentic charm and modern conveniences. However, the area is often crowded, and noise can be an issue for some tenants.


Gruž is becoming increasingly popular for short-term rentals due to its proximity to the port and local markets.

It attracts a diverse range of tenants, including cruise ship passengers and budget travelers. Apartments and small houses in Gruž are in demand, with an average nightly rate of €80-€120.

Offering views of the harbor and ensuring easy access to public transport can enhance rental appeal.

However, Gruž lacks the historical charm of other areas and can be noisy due to port activities.

Babin Kuk

Babin Kuk is ideal for visitors seeking a balance between city attractions and beach relaxation.

It's popular with families and groups. Rental properties range from modern apartments to family homes in Babin Kuk, averaging €100-€150 per night. Amenities like pools and proximity to beaches are major selling points.

The key to success in Babin Kuk is offering a tranquil environment with good connectivity to the city.

The downside is the seasonal nature of demand, with a significant drop in the off-season.

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