Slight Recovery of Croatia’s Real Estate
According to market analysis conducted by Croatia’s Vecernji List, the Croatian real estate market is moving upward. Prices of apartments are recovering and have been doing so for the past few years. Croatia’s two cities, Zagreb and Split record rapid growth in property prices with the current price just 6% lower than in the prerecession period.
On a national level Croatia’s real estate market is moving in a positive direction. This trend is caused by high demand in coastal areas. Coastal cities Split and Rijeka show small positive movements in property prices while the only continental county that followed the trend is Međimurje. Međimurje has a rich cultural heritage which attracts tourists from traditional Croatian drive-to markets, the county plans to launch as many as 160 large and small projects that should turn Međimurje into a recognizable tourist brand.
The capital of Croatia, Zagreb, shows somewhat large variations in property prices from bellow €1000/m2 to more than €2000/m2. Demand varies depending on the location of properties, those closer to the city center are the most sought after and are the most expensive ones while the properties on the outskirts of the city demand lower prices and are an attractive offer for families with children.
Croatia’s coastal cities Dubrovnik, Split and Zadar demand the highest prices per square metre, but in return they provide the best yield. High prices in costal Croatia are dictated by high demand and low supply. Supply is limited due to geographical constrains and lack of buildable areas. Cities with highest real estate prices are Dubrovnik, Opatija and Hvar.
