Croatia real estate market records sharp transaction drop as prices keep rising

The Croatian property sector is entering a period of tighter regulation and professionalisation, with a focus on consumer protection, as highlighted at a two‑day real‑estate forum organised by the Croatian Chamber of Economy (HGK) and the HGK Real Estate Association.

Transaction volume fell 13.4% year‑on‑year, the decline being most pronounced in coastal counties such as Primorje‑Gorski Kotar and Split‑Dalmatia where activity dropped nearly a third. Purchases by foreign buyers, especially from Western Europe, also decreased. At the same time, average prices continued to climb, reaching €2,885 per square metre for new apartments in 2025 and €3,436 in Zagreb.

Industry leaders attributed the slowdown to an “excessive rise in prices” that has pushed many properties into unrealistic ranges and to a shortage of affordable housing. They called for increased supply, including activation of vacant units and new construction, and noted that amendments to the real‑estate brokerage law are expected to be adopted by the end of the year.