The Croatian real estate market suggests that in 2023 property prices reached their ceiling.
However, whether they will decrease and by how much in 2024 is uncertain.Like in other EU countries, many citizens in Croatia do not have housing resolved. The majority of the population lives in rented accommodation since acquiring their own property is unattainable for most young families. The rising interest rates make deciding to buy a property difficult. Those who are selling, especially old apartments, are increasing prices per square meter as there is strong purchasing power from abroad. Uncertainty among citizens is growing, and inflation, coupled with the transition to the euro, is literally eating up the monthly salary.
Will there be a change in the real estate market in 2024?
Croatia experienced a price increase in 2023, which is almost record-breaking.Significant price increases in Varaždin and Osijek
Price increases have primarily affected the apartment market, specifically residential properties, which also include houses, especially along the coast, where these properties are a significant part of purchasing power.Commercial property prices have not increased as much as apartment prices. The price increase mainly concerns residential spaces and applies especially to Zagreb and the coast. The most significant increase has been observed in Osijek, Čakovec, Varaždin, Zagreb, and some other parts of Croatia, which were somewhat overlooked until now.
Building plots are still attractive.
The number of sold plots has been growing, both for investment projects and personal needs.Apartments have the highest number of sales in absolute numbers where demand is the highest, while for plots, the situation is such that demand exceeds supply, as well as for houses. Regarding houses intended for permanent residence, demand is greater than supply.
What awaits us in 2024
A recession is beginning to appear on the Croatian real estate market, reflecting not only in Croatia but particularly in key markets such as Germany and Austria, where buying and selling activity in 2023 dramatically decreased by over 50 percent.Given the constant rise in interest rates, there is no expectation of significant real estate price growth. A likely scenario for price development next year is a decrease in the number of buying and selling transactions. There will probably be fewer foreigners buying property in Croatia next year. This is an indication that prices will not increase anymore but have reached a hypothetical maximum at this moment.
