Buying a property in Split: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

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

Wondering about investing in real estate in Split? You're not alone!

Many people are drawn to Split's Mediterranean allure and fantasize about owning a beachfront villa or a modern apartment there.

Is it a wise investment, though? Are property prices increasing in Split? What is the price per sqm? Should you consider investing in the Old Town or Bacvice? Is there any hidden tax? Where can you get a yield above 7%?

We have all the answers you need.

The Investropa team has thoroughly explored 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 property market in Split?

Is the property market showing growth or decline? Let's analyze the latest data and statistics.

Types of properties

In Split, you can find various types of properties for sale to suit different preferences and needs.

These include apartments, perfect for individuals or small families, offering convenience and manageable spaces; houses and villas, providing more room and privacy, suitable for larger families or those desiring more space; and commercial properties, like shops or offices, catering to business ventures.

Additionally, there are plots of land available for those looking to build their own customized properties.

Whether you're seeking a cozy apartment, a spacious house, a commercial space, or a plot of land, Split offers a range of options to explore.

What's better: buy or rent?

(In case you want it for yourself, not for rental purposes)

If you're planning to settle in the scenic city of Split, Croatia, you may be thinking about the advantages of buying versus renting a property in this historical coastal town.

Without a doubt, you should buy if you want to acquire equity and have more control over your home.

Want to make a good decision? Check out the property price-to-rent ratio. You can use this number to see how long it will take to recover the property's cost through rental earnings.

According to Numbeo, the property price-to-rent ratio in Split is around 33.23, which is significantly above the world average.

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

Property prices in Split

On average, according to the last reported data from Croatian Bureau of Statistics, buying a property in Split would cost you around $3,700 per square meter.

There are big differences, obviously. An apartment in Diocletian's Palace might have a different price per square meter than a villa in Bacvice. We actually give you a more detailed breakdown in our pack for buying property in Split and in Croatia.

To put things in perspective, it means that, instead of buying an apartment in Paris or London, you can afford 4 properties in Split.

Also, housing prices in Split are 47% cheaper than in the Croatian Islands.

The most expensive neighbourhoods in Split are probably Marjan, Meje, and Varos, while the cheapest areas are probably Manuš and Dolac.

Trends

First and foremost, it's essential to acknowledge that Croatia is currently a country with significant stability. The last Fragile State Index that has been reported for this place is 49.3.

Keep this in view when pondering the viability of buying a property in in Split.

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 Split it's a good thing because the growth of the economy results in higher incomes for citizens, enabling them to invest in real estate, both for personal use and as a lucrative asset, fueling the 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 Split 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 Split

Buying real estate in Split can be difficult due to the lack of reliable and up-to-date information available during the buying process. That's why we have created the pack to buy property in Split 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 Split:

1. Research the Split property market and define your budget.
2. Engage a local real estate agent familiar with Split's regulations.
3. Visit potential properties and inspect with the agent's assistance.
4. Verify property ownership and title status at the Split Land Registry (Zemljišne knjige).
5. Obtain the "Izvadak iz katastra" (property cadastre extract) and "Vlasnički list" (ownership certificate) for due diligence.
6. Negotiate the price and terms of the sale with the seller, often involving a reservation contract.
7. Hire a Croatian lawyer to review the sales contract and ensure legal compliance.
8. Sign the Preliminary Contract ("Predugovor") and pay a deposit (usually 10% of the property price).
9. If you are a foreigner, obtain approval from the Ministry of Justice for property acquisition.
10. Arrange financing if necessary and secure a mortgage from a local bank.
11. Complete the Final Contract ("Glavni ugovor") signing and pay the remaining balance.
12. Register the property transfer at the Split Land Registry and pay the applicable taxes and fees to finalize the purchase.

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.

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Where to find a property

Start your property search in Split by exploring these websites.

• 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 - An extensive 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 Split is $3,700. A 1-bedroom property with an area of 60 square meters would cost approximately $222,000, whereas a 2-bedroom property with an area of 85 square meters would cost approximately $315,000.

Obviously, property prices will change based on both the property itself and its location.

Prices tend to be higher in the top areas of Split. A condominium in Meje might cost you around $420,000, and a property in Bacvice could be around $390,000.

However, some places are cheaper. You may find an apartment in Visoka for $120,000, or an apartment in Trstenik priced only at $100,000.

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

Common mistakes

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

• Ownership regulations: Foreigners may face restrictions on purchasing certain properties or land.
• Adriatic coast laws: Coastal properties have unique zoning rules and access rights.
• Dalmatian stone homes: Historic buildings may require costly restoration and maintenance.
• Earthquake risks: Older properties may lack seismic reinforcement, posing safety concerns.
• Tourist rental limitations: Certain areas have restrictions on short-term rentals to protect local housing.
• Dubrovnik-protected status: Properties in UNESCO sites may face stringent renovation guidelines.
• Currency conversion fees: Converting funds to kuna can involve additional costs.
• Language barrier: Miscommunication with local agents or sellers can lead to misunderstandings.

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.

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

Living in Split

Living in Split is a great experience, as the city offers a vibrant culture, beautiful scenery, and plenty of outdoor activities to enjoy.

Cost of living

The cost of living in Split is generally considered to be quite reasonable. Prices for basic items such as food and accommodation are generally lower than in other parts of Europe, making it an attractive destination for tourists and expats alike.

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

• Rent for a one-bedroom apartment in the Old Town: $900/month.
• Monthly public transportation pass with Promet Split: $35.
• "Peka" dinner for two at a local konoba: $60.
• "Ožujsko" beer at a bar: $3.
• Groceries at Green Market (Pazar): $100/week for a family of four.
• Basic utilities for an 85m² apartment with HEP: $90/month.
• Ticket to a cultural event at Croatian National Theatre: $20.
• "Rakija" at a local tavern (konoba): $5.

Neighbourhoods

We like to show information in a clear and easy-to-understand way. So, we have made a summary table that lists the different areas of Split. For yields, prices and rents, check our property pack.

Life in Split

Split is the second largest city in Croatia and is an important economic hub in the region. It is home to a variety of industries, including tourism, manufacturing, and technology, as well as a thriving port and shipbuilding industry.

What expats usually like the most about Split is the Mediterranean climate and the vibrant culture. They also love the historic architecture, the beautiful beaches, and the convenient access to nearby islands.

Regarding safety, the crime rate of Split is around 31, which is a fairly good score. Split has a strong police presence and low poverty rate, which contributes to its low crime rate.

A good point for a property investor - Split has an extensive tram network, which is the main form of mass rapid transit in the city.

Access to healthcare in Split is excellent, with a Healthcare Index of 74. A strong healthcare setup always reflects positively on real estate.

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Renting out in Split

This part is for you if you want to buy a property with the goal of renting it out and making money from it, rather than living there.

Long-term

Tenant Profiles in Split

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 Split 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 young professionals, families, and retirees who are looking for a safe and affordable place to live. If you decide to rent out to short-term tenants, you should target business travelers, vacationers, and other visitors who are looking for a convenient and comfortable place to stay.

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

Rental yields

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

Split offers some of the best rental yields due to its thriving tourism industry and its proximity to the Adriatic Sea. Many tourists come to Split to enjoy its picturesque coastal landscape, so properties in the city center or near the beach tend to be in high demand and offer the best rental yields.

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 Split are taxed at 10%, which is very advantageous.

Short-term

You could also decide to rent short-term to tourists visiting Split for a few days, or to students attending one of the universities in the city. Additionally, Split is a popular destination for business travelers, so you could also rent to them for short stays.

If you decide to go with that option, look for properties in the city center, particularly around the Riva Promenade and the Diocletian Palace, as they are the most popular areas for short-term rentals. Additionally, properties around Bačvice beach area are also desirable for short-term rentals.

Currently, there are approximately 8,000 active Airbnb listings in Split, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $99.

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 Split can make around $1600 per month. Also, the average occupancy rate is estimated at 75%.

Is it worth buying real estate in Split then?

Buying a property in Split, Croatia, can be a smart move for some, but it's not a one-size-fits-all decision.

If you're planning to live in Split long-term and value the stability of homeownership, it could be a worthwhile investment. The city offers a beautiful Mediterranean lifestyle, a relatively low cost of living, and a growing economy. However, it's essential to be aware that property prices in Split are relatively high, making it more expensive to buy than rent, especially given the property price-to-rent ratio, which is above the world average. The potential for property appreciation over time can justify the high upfront costs for those committed to staying in Split for the long haul.

On the other hand, for real estate investors seeking substantial rental income or quick returns, Split may not be the ideal choice at the moment. Rental yields in Split are currently low, hovering around 2-3%, which is far from the 7% or higher returns that investors often seek. While the city's growing economy and thriving tourism industry offer potential, the competitive short-term rental market, with thousands of Airbnb listings, means that investors need to carefully analyze market dynamics and seasonal variations. Additionally, ownership regulations, maintenance costs, and earthquake risks for older properties should not be overlooked.

In summary, buying property in Split can be a good idea for long-term residents and investors with a patient approach, but it may not offer the quick returns that some real estate investors are seeking.

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.

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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.