Is buying a property in Split Old Town a good investment?

Last updated on December 7, 2023

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

If you've wandered through the historic streets of Split Old Town and been enchanted by its Roman heritage, you may have contemplated investing in a property here to immerse yourself in the rich history and vibrant culture of this Croatian city.

Is it a good idea though? How is the real estate market there? Are prices going up or going down? Do people make profits on their real estate investments? What about the rental demand?

We'll answer all these questions for you! When building and updating our property pack for Croatia, our team has been researching and surveying this area. Actually, lots of customers are interested in investing there. So we thought it would be a good idea to add some information about it in our pack.

Why do property buyers like investing in Split Old Town?

Split Old Town in Split, Croatia, stands out as a highly attractive location for property buyers due to several unique attributes.

Firstly, its historical and cultural richness is unparalleled. This area is home to Diocletian's Palace, a UNESCO World Heritage site, providing a living experience that's steeped in history.

This is something you won't find in most other real estate markets, where properties might be modern but lack such profound historical significance.

While the newer parts of the city offer modern amenities and newer constructions, they lack the Old Town's charm and character. The narrow, winding streets, the ancient architecture, and the proximity to key historical sites in the Old Town create a unique living experience.

This contrasts with the more spacious, but less characterful, residential areas in other parts of Split.

The popularity of Split Old Town as a real estate market began to rise significantly in the early 2000s. This was partly due to Croatia's growing prominence as a tourist destination, coupled with Split's increasing recognition as a cultural and historical gem.

The question of whether this hype will remain can be backed by the enduring appeal of historical locations worldwide.

Generally, areas with unique historical significance, like Split Old Town, tend to retain their allure over time, suggesting that the interest in this market is not just a passing trend.

The kind of people attracted to Split Old Town are varied. It appeals to history enthusiasts, culture lovers, and those looking for a unique lifestyle in a historical setting. Additionally, it attracts investors who see the value in owning property in a UNESCO World Heritage site.

However, it's not just the history buffs; the area's vibrant atmosphere, with its cafes, restaurants, and shops, also draws in a younger crowd and professionals seeking a blend of old-world charm and modern living.

Despite these strengths, there are some weaknesses to consider. Living in an old town often means dealing with narrow streets that can be difficult to navigate by car. Parking can be a significant issue, and the ancient buildings, while charming, might require more maintenance than newer constructions.

Furthermore, the area can get crowded, especially during peak tourist seasons, which might not be ideal for those looking for a quieter, more secluded living environment.

Make a profitable investment in Split

Better information leads to better decisions. Save time and money. Download our guide.

Why is Split Old Tow a nice place to live?

Living in Split Old Town offers a unique lifestyle and cultural experience.

This area, renowned for its historical charm and architectural marvels like Diocletian's Palace, provides residents with a blend of ancient history and modern living.

The lifestyle here is often described as relaxed yet vibrant, with numerous cafes, boutiques, and art galleries nestled within centuries-old buildings. This fusion of old and new creates a unique ambiance that's hard to find elsewhere.

The expat community in Split Old Town is quite welcoming and growing, thanks to the town's appeal to those seeking a culturally rich life.

Expats often find it easy to integrate, with many local events, clubs, and social groups catering to a diverse international population. This sense of community is a significant draw for those considering a move to Split Old Town. Cost of living is an important consideration.

While living in such a historic center can be more expensive compared to other areas in Split, it's generally more affordable than many other European cities.

However, this can depend greatly on your lifestyle choices and the type of property you choose to live in. Properties within the Old Town can be more costly, especially if they have historical significance or offer views of key landmarks.

Safety in Split Old Town is generally very good, with low crime rates, especially compared to larger European cities. The area is well-patrolled and maintains a sense of security, making it a safe choice for families and solo dwellers alike.

Regarding amenities and facilities, Split Old Town is well-equipped. There are several reputable schools, including the Primary School Marjan and Split III High School, catering to the educational needs of families. For healthcare, the Clinical Hospital Center Split is a major facility offering a wide range of medical services.

Shopping enthusiasts will enjoy Marmontova Street and the Pazar, Split's famous outdoor market, for unique shopping experiences.

The infrastructure in Split Old Town is a mix of old and new. While the charm of its narrow cobblestone streets is undeniable, it can sometimes pose a challenge for modern transportation.

However, utilities and internet connectivity are generally reliable, meeting the standards of modern living.

Accessibility is a strong point for Split Old Town. It is well-connected to other parts of Split, making it easy to explore the rest of the city. The town is also conveniently located near major transport hubs, including the Split Airport, which is about a 30-minute drive away.

Public transportation options include a network of buses, making it relatively easy to navigate the city and its surroundings.

How much does it cost to buy real estate in Split Old Town?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Croatia.

When looking into buying a property in Split Old Town, it's important to understand the variety of residential properties available and the factors influencing their prices.

In this historic area, the property market mainly comprises apartments, houses, and some luxury villas. These properties often feature unique architectural elements and a historical charm that is hard to find elsewhere.

Apartments, especially those within or near historic buildings like Diocletian's Palace, are in high demand. Their appeal lies in the combination of historical significance and the vibrant urban life of Old Town. This demand is further fueled by the limited availability of such properties, making them highly sought after.

In Split Old Town, you'll find that the market is predominantly resale properties rather than new developments. This is due to the historical nature of the area, where new construction is limited to preserve the architectural and cultural heritage.

As a result, most available properties are older buildings, many of which have been renovated to add modern amenities while retaining their historical charm.

Prices in Split Old Town vary, but they tend to be on the higher end due to the area's desirability and historical value. The price per square meter can range significantly based on factors like the property's condition, size, and exact location.

Generally, you can expect prices to start from a higher baseline compared to other neighborhoods in Split.

Over recent years, property values in Split Old Town have shown a steady increase. This trend is influenced by the area's growing popularity as a tourist destination and its appeal to both domestic and international buyers. The limited availability of properties in this historic center also plays a crucial role in the rising property values.

Looking ahead, there might not be significant new developments within the Old Town due to its protected status. However, any city planning changes or developments in the surrounding areas of Split could impact property values in the Old Town.

For example, improvements in infrastructure or the development of new tourist attractions nearby could make the area even more desirable.

Predicting the real estate market's future in Split Old Town, the trend of increasing property values is likely to continue.

Factors indicating a potential increase in value include the continuous demand for unique historical properties, the limited supply of such properties, and the general trend of rising real estate prices in desirable European locations.

Where is the best area to buy a property in Split Old Town?

When considering the best area to buy a property in Split Old Town, it's crucial to understand the nuances of different parts of this historic center.

Split Old Town is a mosaic of charming streets, ancient buildings, and bustling squares, each offering a distinct atmosphere, property types, and price ranges.

One of the most iconic areas in Split Old Town is around Diocletian's Palace. Properties here are often nestled within or adjacent to historical buildings and offer a truly immersive experience in the town's rich history. This area is perfect for those who appreciate architectural marvels and want to be in the heart of the city's cultural life.

However, due to its prime location and historical significance, property prices here tend to be higher.

Another area to consider is the Varoš neighborhood, located just west of the Palace. Known for its narrow, winding streets and traditional Dalmatian stone houses, Varoš offers a more quaint and residential atmosphere. The properties here are typically smaller and have a cozy, authentic feel.

While still within walking distance to the city center, Varoš generally has more affordable prices compared to the areas directly surrounding the Palace.

Regarding up-and-coming areas within Split Old Town, neighborhoods like Veli Varoš and Dobri have been gaining popularity. These areas still retain much of their historical charm but are often overlooked in favor of more central locations. They present a good opportunity for buyers looking for properties with potential for value appreciation.

For those considering where to buy, areas like Riva and Marmontova Street are also worth exploring. These vibrant areas are known for their lively atmosphere, with plenty of cafes, restaurants, and shops. Properties here are ideal for those who enjoy being in the midst of a dynamic urban setting.

However, the hustle and bustle might not suit everyone, especially those seeking a quieter lifestyle.

On the contrary, certain areas within Split Old Town might be less advisable for property buyers. For instance, areas that are overly crowded with tourists, especially during the summer months, might not be ideal for those looking for a peaceful residence.

Additionally, some streets might be too narrow or have limited access, posing challenges for daily living, especially for those with mobility issues or who require regular vehicle access.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Croatia.

Area	Description	Property Types	Price Range
Diocletian's Palace Area	Heart of historical significance, cultural life	Apartments in historic buildings	Higher
Varoš	Quaint, residential, traditional Dalmatian atmosphere	Small stone houses	More affordable
Veli Varoš and Dobri	Up-and-coming, historical charm	Varying types	Potential for value appreciation
Riva and Marmontova Street	Lively urban setting, cafes and shops	Diverse, suitable for urban lifestyle	Varies
Overly Touristy Areas	Crowded, especially in summer	Mixed	May be less suitable for peaceful residence

Don't lose money on your property in Split

100% of people who have lost money in Croatia have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Is there a strong rental demand in Split Old Town?

In Split Old Town, the rental demand is indeed strong, with a particular skew towards short-term rentals.

This trend is largely influenced by the town's status as a popular tourist destination. The historic charm of Split Old Town, combined with its cultural and scenic appeal, makes it an attractive spot for tourists seeking short-term stays. This is especially true during the summer months when the demand for vacation rentals peaks.

The target demographic for these short-term rentals primarily includes tourists and travelers. These individuals range from solo travelers and couples to families and small groups, often looking for a unique experience in a historic setting.

They tend to seek properties that offer a blend of traditional charm and modern amenities. Apartments and small houses, particularly those with traditional Dalmatian features or those situated in or near significant historical sites like Diocletian's Palace, are highly sought after.

Specifically, areas like Riva, Marmontova Street, and the immediate surroundings of Diocletian's Palace are highly desirable for this demographic. These locations offer easy access to the main attractions, dining, and shopping, enhancing their appeal for short-term stays.

In terms of amenities, features that cater to the comfort and convenience of tourists can significantly reduce vacancy rates. This includes modern conveniences like Wi-Fi, air conditioning, and updated kitchens and bathrooms.

Additionally, properties that maintain or incorporate historical features and architecture offer an added appeal, providing an authentic Split experience.

Regarding potential returns on investment, properties in Split Old Town can yield lucrative returns, especially with short-term rentals. The exact figures can vary, but the high demand during peak tourist seasons often translates to premium rental rates.

Owners who strategically manage their properties and maintain high standards of accommodation can see substantial annual returns, particularly if their properties are located in the most sought-after parts of Old Town.

As for the types of properties gaining more demand and potentially offering better yields, well-maintained and well-located apartments, especially those with historical significance or unique features, are at the top of the list.

As the trend towards experiential travel continues to grow, properties that offer an authentic, culturally rich living experience will likely see increased demand.

Make sure you understand the real estate market in Split

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.

Is it easy to buy a property as foreigner in Split Old Town?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Croatia.

Buying property as a foreigner in Split Old Town, Split, can be relatively straightforward, but there are specific considerations and regulations to be aware of.

Croatia, like many countries, has its own set of rules governing real estate purchases by foreigners, which can impact the ease of buying property.

Firstly, regarding regulations or restrictions, EU citizens typically have the same property buying rights as Croatian citizens.

However, for non-EU citizens, the process may involve additional steps, such as obtaining permission from the Ministry of Justice. This process can take time, and approval is not guaranteed.

It's also important to note that certain properties, especially those with cultural or historical significance, might have additional restrictions or may not be available for sale to foreigners.

The purchasing process in Split Old Town generally follows standard real estate transaction procedures. It begins with property selection, followed by price negotiation, contract drafting, and finally, the transfer of ownership.

A key risk in this process, especially in historic areas like Split Old Town, is the potential for legal complexities related to property rights and heritage protection laws. Properties in historic areas can sometimes have unclear ownership histories or may be subject to preservation orders that can affect renovations or alterations.

A classic pitfall for foreign buyers in Croatia, and particularly in a historical area like Split Old Town, is not being fully aware of the legal and bureaucratic processes involved in property transactions. For example, ensuring the property has a clean title and no outstanding legal issues is crucial.

Additionally, understanding local planning and building regulations is essential, especially for properties in historic districts where there may be restrictions on alterations or developments.

Given these complexities, working with a local real estate agent and a lawyer is highly recommended. A knowledgeable local agent can provide valuable insights into the local market, help identify properties that meet your criteria, and navigate the negotiation process.

A lawyer is essential for ensuring all legal aspects of the transaction are handled correctly, including property rights, contracts, and compliance with local regulations.

Common exit strategies for property investors in Split Old Town include reselling the property, particularly after renovations or improvements, or leveraging the property for rental income. The area's popularity as a tourist destination makes short-term rentals a lucrative option.

However, investors should be mindful of market fluctuations and regulatory changes, especially those affecting the tourism and rental markets.