Are you wondering if property investment in Croatia is right for you? We bring you an article where we discuss the development of property prices, which locations are interesting from the point of view of investment, which are overpriced, who is buying the most property among foreigners and what is the appreciation in the case of further renting.
About the country:
Croatia has always been a popular destination for us, but recent years have shown that even in times of pandemic, the goal of visiting this beautiful country has increased due to its easy accessibility by car. The increasing interest from the point of view of investors and tourists is also based on the fact that Croatia offers an incredible variety of landscape beauty, natural wealth, clear crystal sea, excellent healthy Mediterranean cuisine, clean air, olive oil and wines. In addition, there are many historical buildings or towns that are UNESCO heritage sites. Many investors from Slovakia and the Czech Republic choose this country because it simply feels like home and there is no language barrier. Croatia’s proximity and location provides quick and easy arrivals and departures whenever you need them. There are also plenty of quality marinas where you can rent or store a boat and set off on a new adventure. Whether you choose a luxuriously furnished apartment or a house you will wake up every morning refreshed and relaxed as you wake up in a land of a thousand islands, warm climate and beautiful nature. The clear Adriatic Sea offers endless views of the sea and islands, and you’ll end each day with the most beautiful sunset.
Property price development:
Despite two years of the coronavirus pandemic, the real estate market in Croatia is stable, the construction of apartments and flats continues to grow and prices are rising more and more each year. Investor demand is expected to remain strong this year for key properties – these are “value-added” properties in seaside locations and in larger cities that offer long-term rental opportunities. Attractive location and good transport links, established infrastructure, flight connections are probably the reason why the highest price per square metre was recorded in Split, Zagreb and Zadar last year 2021. These locations are among the most expensive when buying real estate. However, it is worth highlighting the fact that all these cities are only a two-hour flight away from all major European cities. The demand for real estate is strong both from the local population and from foreigners who are mainly interested in the coastal areas. The most popular areas are those with established infrastructure and relative proximity to air links. Dubrovnik, Split, Opatija, Istria, Hvar Island and Brac Island are the preferred locations among investors.
Residential market price development, average prices (2021 Y2Y): Zagreb +8.0% Split +6.9% Rijeka +6.4% Osijek -3.7%
Source: Njuskalo.hr and eNekretnine
Average property price by location in 2021 was: 2 135 EUR/m² in Zagreb, new-build residential projects in Zagreb ranged from 1 600 EUR/m² to 2 200 EUR/m² 2 985 EUR/m² in Split, 1 727 EUR/m² in Rijeka and 1 057 EUR/m² in Osijek, Source Njuskalo.hr.
The biggest demand for real estate is from residents of the countries: Austria Slovenia Slovakia Czech Republic and Russia. Rental yields range from 5 – 6% based on location, with smaller properties having greater profitability power.
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.
Source: https://best-realestate.eu/en/ponuda/apartments/ https://www.colliers.com/en-hr/research/market-overview-croatia-h2-2020
