The Croatian real estate market is experiencing a continued downturn, marking the second consecutive year of declining property sales. In 2024, 1,800 fewer apartments and 770 fewer houses were sold compared to 2023, representing a 2.9% drop in total transactions.
Foreign Buyers Still Active
Despite the overall decline, foreign buyers remain a significant force in the market. In 2024, foreigners purchased over 11,500 properties, accounting for 37.5% of all real estate transactions. The most active buyers come from Slovenia, Germany, and Austria, showing sustained interest in Croatian real estate.
Most Attractive Locations
Certain regions continue to attract the most interest from buyers. The highest sales are recorded in Zagreb, Primorje-Gorski Kotar, Istria, Split-Dalmatia, and Zagreb County. These areas remain hotspots due to their economic opportunities, tourism appeal, and lifestyle advantages.
Property Prices Remain Stable but Expected to Decline
Although sales have declined, property prices have not significantly dropped. However, economic experts predict that prices may decrease in the near future due to the previous real estate bubble. The market’s stability is largely influenced by ongoing demand, but a gradual price correction could be on the horizon.
Expert Advice for Buyers
Real estate experts recommend that potential buyers consider waiting before making a purchase. Prices may continue to decline, making properties more affordable. However, expectations for drastic reductions in luxury real estate prices are unlikely, as high-end properties maintain their value due to investor interest.
Impact of the National Housing Policy Plan
Upcoming legislative changes could influence the real estate market. The government is expected to introduce new laws and measures, including tax refunds for young buyers purchasing their first property. Additionally, the Croatian National Bank (HNB) is planning adjustments to housing loan approval criteria, which may impact mortgage conditions.
Increase in Parking Space Sales
Interestingly, while the sales of apartments and houses have declined, there has been a noticeable increase in the sale of parking and garage spaces. This trend suggests a shift in investment priorities among buyers.
Long-Term Market Outlook
Affordable housing remains a challenge for many, as property prices are still relatively high. While the market in 2024 is considered stable, further price drops are possible. Investors and buyers will closely monitor upcoming policy changes and market shifts to determine the best timing for transactions.
The Croatian real estate sector faces a year of transformation, and both domestic and foreign buyers will need to adapt to evolving conditions. As new policies take effect and economic factors influence pricing, the market’s direction in the coming years remains a topic of keen interest.
Source: Dnevnik.hr
