Are you thinking of a real estate investment in Croatia? We bring you an article where we discuss the development of real estate prices, which locations are interesting in terms of investment, which, on the contrary, overpriced, who buys the most real estate from among foreigners and what is the appreciation in any future rental..
About the country:
Croatia has always been a popular destination for us, but recent years show that even during the pandemic, due to its easy accessibility by car, the goal of visiting this beautiful has increased even more.
The growing interest from investors and tourists is also based on the fact that this country offers an incredible diversity of landscape beauty, natural wealth, clear crystal sea, excellent healthy Mediterranean cuisine, clean air, olive oil and wines. In addition, you will find many historic sites or cities that are listed as UNESCO World Heritage Sites. Many investors from Slovakia and the Czech Republic choose this country because they simply feel at home in it and do not feel the language barrier. The proximity and location of Croatia provides quick and easy arrivals and departures whenever you need them during the year. There are also a number of quality ports where you can rent or store a boat for a sea adventure.o.
Whether you choose a luxuriously furnished apartment or a house, wake up every morning happy and rested, because you live in a land of thousands of islands, a warm climate and beautifully clean and preserved nature. The clear Adriatic Sea offers endless views of the sea and islands, and you will end each day with the most beautiful sunset.
Real estate price development:
Despite two years of coronavirus pandemics, the real estate market in Croatia is stable, housing construction continues to rise and housing prices are rising more and more every year. Investor demand is expected to remain strong this year for key properties – value-added properties and high occupancy in offshore and urban locations that provide long-term leases.
Attractive location and good transport links, well-built infrastructure, air connections are probably the reason why the highest price per square meter recorded in Split, Zagreb and Zadar last year was 2021. These locations are among the most expensive when buying a property.
However, it should be emphasized that all these cities are only two hours away from all major European cities (many European cities can also be reached in less than 2 hours). The demand for real estate is mainly from the local population, but also from foreigners who are mainly interested in coastal areas
The most popular areas are those with well-built infrastructure and relative proximity to air links. Preferred locations among investors are: Dubrovnik, Split, Opatija, Istria, the island of Hvar and the island of Brac.
Residential market price development, average prices (2021 Y2Y):
Zagreb +8,0 %
Split +6,9 %
Rijeka +6,4 %
Osijek -3,7 %
Source: Njuskalo.hr a eNekretnine
The average property price by location in 2021 was:
2,135 EUR / m2 in Zagreb, new housing projects in Zagreb
in the range of EUR 1,600 / m2 to EUR 2,200 / m2
2 985 EUR/m² in Split,
1 727 EUR in Rijeka and 1 057 EUR in Osijek,
The largest demand for real estate by origin is the inhabitants:
Rental income ranges from 5 to 6% based on location, with smaller properties having greater profitability.
The main reason for the resilience of the real estate market in Croatia is the limited real estate supply, also the adoption of the Euro as the currency in 01/2024.