Croatia real estate prices rise despite falling sales

The Croatian real estate market is experiencing a trend where property prices continue to rise despite a decline in the number of completed sales. Lana Mihaljinec Knežević, a member of the Presidency of the Real Estate Business Association at the Croatian Chamber of Economy (HGK), noted that average prices have increased, though she cautioned that averages do not fully reflect the market due to significant regional disparities.

High prices are most prominent in coastal tourist hubs such as Dubrovnik, Rovinj, and Opatija, followed by Zagreb, while prices on the mainland remain considerably lower. The decline in sales, which has persisted for several years, is attributed to a chronic lack of supply.

According to Mihaljinec Knežević, there is a shortage of new construction, particularly regarding mid-range and affordable housing. Furthermore, the stock of used properties has been largely depleted, as many older homes in areas with lower economic activity have been sold off without sufficient reinvestment into the existing housing fund.