How Apartment and House Prices in Croatia Have Moved Over the Last Five Years

Market Trends 2025

Prices have continued to rise, though at a more moderate pace than in previous years. By mid-2025, average asking prices were around 10% higher than a year earlier. Transaction volume remains stable, with a shortage of quality supply.

Foreign buyers account for roughly one-third of purchases on the coast. Slovenians, Germans, and Austrians lead in Istria and Kvarner. In Zagreb, local buyers and the diaspora dominate.

Agencies and analyses point to stabilization. A balance is expected between tourism demand and housing availability for residents. Prime locations continue to hold their value.

What This Means for Investors

• Focus on locations with year-round demand.
• New builds with strong energy performance have an advantage.
• Projects with a clear rental purpose carry a better risk profile.

(Sources: Eurostat HPI; local market analyses; agency reports.)

Why Invest Now

Tourism, the euro, and capital inflows from the diaspora create strong support for demand. The purchasing power of EU tourists and retirees is rising, while Croatia is part of both the Eurozone and Schengen. Transactions are faster and free from currency risk.

Savings lose value when inflation outpaces deposit interest rates. Real estate provides tangible assets and the potential for passive income. Prices in premium locations remain resilient.

Key Advantages for Investors

• Rental income in both high and low seasons.
• Protection against inflation through rising rents.
• Ability to use financial leverage via SPVs.

(Sources: Croatian National Bank interest statistics; BIS and EU property market reports.)

Best Regions and Cities

Zagreb
Stable year-round demand. Rentals for students and professionals. Prices rising with good liquidity.

Istria
Premium market with a long season. Strong demand from returnees and foreigners. Villas and high-quality apartments achieve high rental yields.

Split and Surroundings
Strong tourist demand and city growth. Short-term rentals deliver robust seasonal income. Good liquidity in attractive micro-locations.

Zadar, Šibenik, Islands
Growing interest with lower entry costs than Split or Dubrovnik. Potential in projects with quality rental management.

Dubrovnik
Luxury and global demand. Limited supply and high prices. Suited for capital focused on the premium segment.

Key Selection Criteria

• Micro-location and access to beaches, transport, and amenities.
• Energy efficiency and construction quality.
• Potential for year-round rentals.

(Sources: local agencies, market reviews, Eurostat HPI.)

Tourism as a Return Driver

Croatia is among the EU’s tourism leaders. Arrivals and overnight stays in 2024–2025 reached record levels. The season is extending into pre- and post-summer periods.

This creates strong demand for short-term rentals. In attractive destinations, income from three to four summer months can cover annual costs, with the rest of the year adding extra profit.

Risks and Regulation

• Possible local restrictions on short-term rentals.
• Property tax incentivizes long-term use and renting.
• Professional management reduces vacancy and risk.

(Sources: Ministry of Tourism, national statistics, industry reports.)

Euro, Diaspora, and Projections

Adoption of the euro removed currency risk and lowered transfer costs. For foreign buyers and the diaspora, processes and payments became easier. Schengen further boosted weekend arrivals and purchases.

OECD membership may further ease property ownership for non-EU nationals. Infrastructure investments could create new growth hotspots. Projections point to steady growth, with premium locations continuing to appreciate.

What to Do Now

• Enter projects with a clear cash-flow plan.
• Prefer SPV structures with leverage opportunities.
• Diversify between urban and coastal markets.

(Sources: Eurostat, ESMA, PwC, official ministry publications.)

How Stake Estate Solves Key Barriers

Traditional property purchases demand large capital and time. Managing rentals and construction requires local presence. Regulation and taxation call for expertise.

Stake Estate structures projects through SPVs, where each investor holds a proportional share with transparent reporting. Financial leverage can enhance returns on equity at a reasonable cost of debt. Professional management and reporting reduce operational burdens.

Model Advantages

• Lower entry threshold and diversification.
• Aligned interests between investors and the project team.
• Professional management and transparent reporting.

Notes for Investors

• Short-term rentals carry seasonality and regulatory risks.
• For long-term rentals, focus on cities with year-round demand.
• SPVs with leverage increase ROE but require disciplined project execution.
• Always check micro-location, furnishing costs, and realistic rental estimates.

(Recommended further reading: Eurostat House Price Index; Croatian National Bank interest rates and inflation commentary; ESMA TRV 2023; PwC crowdfunding reports; Ministry of Tourism publications.)

Sources

• Eurostat – House Price Index (HPI)
• Hrvatska narodna banka (HNB) – Kamatne stope na depozite i kredite
• PwC TLS Crowdfunding Report 2023
• ESMA Trends, Risks and Vulnerabilities Report 2023
• Credit Suisse Global Investment Returns Yearbook 2023 (Dimson, Marsh & Staunton)
• BIS Quarterly Review, December 2022 – Retail Investors in Crypto
• Ministarstvo turizma i sporta RH – turistička statistika
• DZS – Državni zavod za statistiku
• SeeNews – Inflation reports for Croatia 2023–2025