The real estate market in Croatia in 2025 is registering a significant decrease in the number of transactions – approximately 85,600 transactions were made in the first nine months, marking a 13% drop compared to the previous year. The largest drop in turnover was recorded in the Split-Dalmatia County (almost 30%), while other coastal counties, including Dubrovnik-Neretva, also experienced a pronounced decline in activity.
Real estate prices
Despite the drop in the number of transactions, real estate prices in Croatia are still rising or stagnating depending on the segment:
The average asking price for residential properties in September/October 2025 was about €3,715 per square meter, reflecting an annual increase of approximately 10%-13%.
New residential properties recorded an annual price increase of 11%, while existing properties are about 13.7% more expensive compared to the same period in 2024.
Exceptions are some interior parts where prices have stagnated or risen more slowly, but growth is slowly spreading to northern and rural parts of Croatia.
Decline in turnover by segments
The reduction in turnover affected almost all types of properties: the number of apartments sold dropped by about 2,500 units, houses recorded a decline of nearly 22%, and building land fell by about 13.8%.
Interestingly, while the number of transactions has fallen, high prices continue to deter new buyers, and higher interest rates and credit restrictions further reduce activity.
Causes and circumstances
The main causes of the decline in demand and turnover are the rise in interest rates in the eurozone, the growth of real estate prices reducing affordability, and weaker demand from abroad.
Although prices have reached new historical peaks, the market has become significantly more expensive, so buyers are more cautious and delay purchases due to uncertainty about future lending conditions and economic development.
There is a clear divergence between price trends and transaction volumes: the market remains among the most expensive in the EU, but turnover is significantly falling. Most experts expect continued stagnation and possible price corrections, especially if the current drop in turnover persists or deepens.
The rise in real estate prices in Croatia despite the decline in demand and turnover can be explained by several interconnected factors:
Limited property supply: There is a chronic shortage of available properties for sale on the market, especially new construction. This lack of supply creates upward pressure on prices, as demand, although reduced, exceeds available quantities.
High construction and renovation costs: Costs of materials and labor remain high, limiting the supply of new properties. Additionally, the earthquake has triggered renovation, further increasing demand for construction capacities and materials.
Changes in the foreign market and inflation: Although foreign buyer interest has declined, they are still willing to pay high prices for quality properties in attractive locations due to investment security. Additionally, rising wages and relative economic stability in Croatia keep prices high.
Long-term rental and property withholding: Some owners choose to keep properties off the market and rent them long-term, which further reduces supply for sale.
Regulations and investment trends: Strict urban planning conditions and relatively slow procedures for new investments slow down the creation of new supply. The government is introducing measures that may affect demand, but supply still lags behind market needs.
Demographic and immigration trends: Increasing immigration puts pressure on the housing market, raising demand for rent and purchase, especially in urban areas.
Overall, prices are supported by a tight market with limited supply and high costs, while demand gradually decreases, leading to a divergence where turnover volume falls but prices remain high or continue to rise.
