Sea homes, review of the real estate market in 2023/2024.

Croatia is a very polarized real estate market. There is a big difference between the Zagreb market, the coastal and rural parts.
The city of Zagreb realizes the largest number of real estate transactions in the whole of Croatia. As the capital of Croatia, Zagreb stands as one of the most visited places in Croatia but also the most expensive to buy real estate, however this charming city has earned its good reputation for its high quality of life and well-known vibrant local community. Zagreb is home to the largest number of universities, health institutions and other social and cultural aspects, and due to the large circulation of local residents and tourists, it provides the largest selection and offer of real estate both for long-term investment and for everyday living. Investing in real estate in Zagreb is definitely a good business move.
The market of Istria and Dalmatia is under the significant influence of foreigners, and real estate bought by foreigners is most often financed with their own funds. In the first half of 2023, we had increased dynamics caused by the high interest of foreign buyers, which was further contributed to by Croatia’s entry into the Schengen zone, the introduction of the euro as the official currency, and the war events in Ukraine. In the second half of 2023, the market slowed down, partly due to the economic crisis in the German and Austrian markets and due to the increase in interest rates of commercial banks.
Despite numerous economic challenges and data indicating a slowdown in the market, a decline in traffic that already occurred in the last quarter of 2023 and continued in 2024, the real estate market in Istria and Dalmatia is quite stable in terms of prices. The logical conclusion would be that the drop in traffic will lead to a decrease in real estate prices, but it seems that is not quite the case, some price corrections have been made, but in relation to new construction, we should not expect a price decrease, especially not in the short term.
The first observations for the year 2024 are that there are plenty of large apartments on the market, while the lack of supply is smaller, one bedroom apartments up to 50 m2. The price of apartments per m2 in new buildings ranges from 3 to 6 thousand Euros, depending on the location, size and position of the apartment in the building. The prices of resale apartments are slightly lower and range from 2.5 to 3.5 thousand Euros per m2 with furniture and equipment included. The prices of construction land, which is the least available, have risen the most. There is also a trend of building villas with swimming pools, which are a great investment.