The soaring cost of housing in Croatia, especially Split

Split

The Croatian property market is experiencing a consistent surge in housing prices, driven by strong demand and limited supply.

While certain regions show signs of a slowdown, others, particularly along the Adriatic coast, continue to see dramatic increases.

Over the past year, property prices per square metre on the coast have surged by 16%.

While there is some good news for Zagreb, where price growth has slowed, properties in coastal areas are becoming increasingly expensive. For instance, the price of a square metre in central Split has reached a staggering €8,200.

Even in more peripheral neighbourhoods, where properties are less central and sometimes located in basements, prices have risen to €4,200 per square metre, according to Dnevnik Nova TV.

The Croatian Bureau of Statistics (DZS) confirms that the 16% rise in coastal property prices over the past year outpaces growth in Zagreb.

Although the capital has seen some moderation, it remains costly, with prices still up by 7.7% compared to last year.

Interestingly, older properties are appreciating at a much faster rate than new builds.

Real estate agent Matej Samardžić explains that while new developments remain the preferred choice, limited supply is driving buyers to the older housing stock, which has pushed up prices.

He also noted significant price growth outside major cities on the coast and in areas surrounding Zagreb, as buyers recognise better value a few kilometres from central hubs.

“Those who delayed purchasing property in the hope that government reforms would bring prices down made a mistake,” said Samardžić. “We always advise that the best time to buy property is now.”

For those looking at the numbers, the reality is stark. Over the past year, a 60-square-metre apartment in Zagreb now effectively costs one less bathroom for the same price. On the Adriatic, the equivalent loss is an entire children’s bedroom.

According to Eurostat, Croatia’s housing price increase of 12.3% is well above the eurozone average of 2.6%. Only Hungary (13.4%), Poland (14.4%), and Bulgaria (16.5%) have experienced greater price hikes.

In contrast, countries like Germany, Finland, and France are witnessing slight declines in property prices.

When will the property bubble in Croatia burst? For now, the answer remains uncertain. What is clear, however, is that the market shows no signs of slowing down along the Adriatic coast.