Croatia’s property market sees drop in foreign buyers

Croatia experiences highest real estate price growth in the EU

Last year, 9515 foreigners decided to make real estate investments in Croatia, but this year the number of foreign buyers has dropped below 7400.

As Poslovni.hr reports, foreigners were the first to hit the brakes when it comes to the domestic real estate market. According to the Tax Administration data, by mid-December 2023, foreigners purchased a quarter fewer properties in Croatia than in 2022.

Mostly, these are houses and apartments by the sea that serve as a personal vacation spot for the new owners, but often also for rental and additional income.

Foreign property buyers mostly come from Germany, Slovenia, Austria, as well as the Czech Republic and Slovakia. For many, investing in Croatia is a good choice as it offers a solid profit margin if they decide to resell, but the purchased property also allows for a continuous influx of capital if they choose to rent it out.

The caution of foreign buyers primarily stems from the economic situation in their home countries, and only then as a consequence of the continuous rise in real estate prices in Croatia, which has not stopped even this year.

From 2015 to date, real estate prices in many parts of the country have doubled.

The average prices of new apartments sold in Zagreb in the first half of this year have exceeded 2600 euros per square meter, and similar prices are found along the Adriatic coast, if not higher. However, the square meter in Kvarner, Istria, Dalmatia, or Zagreb is still cheaper than in many Western European cities.