According to the Croatian Chamber of Economics (HGK), the number of transactions across the country has decreased, and foreign buyers, who were once the main force in the coastal markets, are much less active than before.
Dubravko Ranilovich, president of the HGK Real Estate Association, said that sales have been declining for three years in a row, while the number of transactions nationwide decreased by 15% in the first half of 2025.In coastal districts, where foreign buyers predominate, the decline is even greater, more than 20%. It is obvious that global and domestic conditions are unfavorable.Prices, especially for second homes, are very high, Ranilovich said, adding that many properties have not been sold for more than a year.Despite the fact that new projects are still in demand, Ranilovich noted that there is a slowdown here, as developers continue to raise prices.He expects real estate prices to adjust next year, but warns that the market is sluggish and it may take a long time to adjust.
Foreign buyers, especially from Germany, are reducing their presence, although inflation continues to force many to invest in real estate to protect their savings.Ranilovich also urged buyers to check their agents, noting the presence of "irresponsible intermediaries" on the market.
In central Dalmatia, according to agencies, the market is still active, but its growth rate is decreasing.Yasminka Bilishkov from Biliškov Nekretnine says that demand is changing, as many property owners in Split prefer to rent it out to tourists rather than sell it. However, legislative changes may soon push them towards long-term rentals.She also confirmed a decrease in interest from foreigners, although buyers from Poland, the Czech Republic, Slovakia and Ukraine are still active, while demand from Germans has plummeted.Villas for personal use are still the most in demand among foreign clients.
Zagreb faces another problem.:There is an acute shortage of new facilities.Lana Michaldzhinac Knezhevich from the Zagreb West company said that the capital's secondary real estate market is largely exhausted, and many of the remaining properties are too expensive or of poor quality.She stressed that sellers should "reconsider their expectations" if they want to remain active in the market.Zagreb has recorded a drop in sales of more than 20% this year, with average prices currently ranging from 2,800 to 2,900 euros per square meter, depending on the area.
Market analysts expect further price declines in 2026, including for second homes, as demand declines.
Source: The Dubrovnik Times
