Croatia Investment High

Real estate prices increased exponentially between 2021 and 2022 in popular second home hot spot Croatia, as price increases almost doubled compared to the EU average increase for the same period, reports Abode2.

In 2022, real estate prices increased by 14.8% 2022 compared to the previous year – almost double the EU average increase of 7.7% for the same period. And the trend shows no signs of abating yet, as average asking prices increased by 17.3% year-on-year in the last quarter of 2022.

The boom in the real estate market is mainly fuelled by turn-key investment opportunities in Zagreb, and holiday homes on the Adriatic coast. The average asking price in Zagreb has now reached €2,450 per square metre.

For Zagreb, there was an average 17.9% price increase between 2021 and 2022, while properties along the Adriatic coast – the second most dynamic real estate market in the country after Zagreb – saw a 12.3% increase over the same period.

More interestingly – this industry figure refers to older property. Add new-build into the mix and the average would be even higher.

Popular hot spots with domestic and overseas buyers include Rovinj – the picturesque seaside town on the northern Adriatic – asking prices for apartments close to the seafront reach up to €5,000 per square metre.

On the southern end of Croatia’s Adriatic coastline, in the traditionally expensive tourist magnet of Dubrovnik best known for its mediaeval walls, new build property is selling for €3,000 and €10,000 per square metre.

Price increases are attributed to an array of factors, including low-interest rates offered for both housing loans and deposits on the local banking market, a wider array of flight options from European airport hubs and tourism growth, which accounts for about 20% of the country’s GDP. Croatia has also recently joined the passport-free travel Schengen Area and adopted the euro in January.