In the 2nd quarter of 2024, the housing price index, according to the Statistical Bureau of Croatia (CBS), increased by 9.96% compared to the previous year (+7.33 adjusted for inflation). This was preceded by an increase of 9.13% in the 1st quarter of 2024, 9.48% in the 4th quarter of 2023, 10.87% in the 3rd quarter of 2023 and 13.73% in the 2nd quarter of 2023.Thus, real estate prices have been going up over the past seven years.
In the 2nd quarter of 2024, housing prices increased by 4.29% (3.48% adjusted for inflation).
Apartments in new buildings in the year up to the 2nd quarter of this year rose in price by 5.44% year-on-year (+2.91% adjusted for inflation), in finished houses by 10.59% (+7.93% adjusted for inflation).
Price dynamics by region
In Zagreb, the capital and largest city of Croatia, the cost of housing increased by an average of 9.41% (6.78% adjusted for inflation) year-on-year.This was the 33rd consecutive quarter during which prices rose.On the Adriatic coast, house prices increased by 10.61% (7.95% adjusted for inflation) year-on-year. This was preceded by an increase of 8.9% in the 1st quarter of 2024, 11.3% in the 4th quarter of 2023, 8.2% in the 3rd quarter of 2023 and 12.8% in the 2nd quarter of 2023.
Market history
Before the housing boom, prices for apartments and houses in Croatia had been declining for a long time: by 2.13% in 2015, by 1.44% in 2014, by 1.68% in 2013 and by 5.88% in 2012, according to CBS data. Since then, there have been improvements in the housing market: since 2016 In the year to the 1st half of 2024, housing prices increased by a total of 96.1% (50.8% adjusted for inflation).
However, demand is actually declining.In the 1st half of 2024, the total number of housing units sold in new buildings in Croatia amounted to 1,838, which is 8.9% less than in the previous half and 21.9% less than in the same period last year. For the whole of 2023, 4,370 apartments in new buildings were sold, which is 11.8% more than in 2022 and is the second highest indicator in recent years.
Sales to foreigners
Croatia's luxury real estate market, which is primarily focused on foreign buyers, is growing amid the recovery of the tourism sector.In 2023, the number of tourists visiting the country increased by 9.7% compared to the previous year and amounted to 19.49 million people. This was preceded by an increase of 39.1% in 2022 and 82.5% in 2021. Last year's figures are now comparable to the record 19.57 million arrivals recorded in 2019, before the pandemic.
More than 70,000 foreigners already own real estate on the Adriatic coast of Croatia.Only 3% of international buyers chose Zagreb.Most choose Dubrovnik, Split, Opatija, Istria, Hvar Island and Brac Island.
"The greatest demand is observed for real estate on the coast.The most popular destinations are developed resorts with good infrastructure and relative proximity to the airport, Colliers analysts say.
The majority of foreign home buyers are Germans, Austrians, British, Slovenes, Slovaks, Czechs, Dutch, Hungarians and Russians.
Luxury real estate in Istria is popular among Germans, Austrians and Slovenes.In Dalmatia, the largest demand is for the diaspora from Sweden, Slovakia and the Czech Republic.The buyers of high-budget properties in Opatija are mostly Russians.Source: Global Property Guide
Read also:
How to buy an apartment or villa in Croatia? Calculations, taxes, pitfalls
.jpeg)
.jpg)