Property prices in Croatia have continued to rise this year. Apartments and houses at the end of Q2 2023 were 2% more expensive on average compared to the end of 2022, and 14% higher than a year earlier. 

The trend is different only in the capital Zagreb, where properties decreased slightly by 0.3% at the beginning of the year. However, nationally, Croatia has had the highest increase in house prices per square metre in the European Union over the past 12 months.

Lana Mihaljinac Knežević, the president of the Professional Group of Real Estate Agents at the Zagreb Chamber of Commerce, told local media that the real estate market cycle is turning and will move in a different direction. “The situation on the coast contributes to the average price growth at the national level, especially in those areas,” she added.

Knežević said that many foreigners have been buying properties on the coast as an investment. “Averages don’t tell enough about the market; we need to observe the market segmented according to the regions of Croatia.”

She added: “In Zagreb, you don’t have the highest average prices; those are higher on the coast where foreigners have a significant influence due to increasing percentages of purchases.”