Real estate prices in Croatia 2022-2023 - Development during the Corona years
An extensive study was conducted on the current real estate prices along the Croatian Adriatic coast, based on over 5200 real estate offers (houses, apartments) at the turn of the year 2022/2023 in all coastal regions and islands of Croatia. Purchase-relevant criteria such as proximity to the sea, sea view, and the year of construction of the property were taken into account.
01/2023
Real estate prices in Croatia 2022/2023 - Prices per square meter, developments, and outlook.
Region
Average price / m²:
Change from 2020 to 2023:
Real estate market in Croatia - Development during the Corona years and current prices.
The main results of the study are:
- ★ Significant increase in real estate prices. (especially for apartments) since 2020 by approximately 30% to now 3,090 € / m²
- ★ Northern regions with strong price increases during the Corona crisis: Istria, Kvarner, North Dalmatia record the strongest growth
- ★ Top 5 - most expensive: Split, Opatija, Vis, Rovinj, Dubrovnik / least expensive: Senj, Novi Vinodolski, Karlobag / Starigrad Paklenica, Island Pag
- ★ Significant price increases for sea views, proximity to the sea, new buildings
- • Home office / digital nomads working from a holiday apartment with a sea view and internet
- • Second homes / (at least seasonal) emigration to a safe, accessible country by the sea with a (German-)friendly population
These hidden trends are likely to remain attractive:
The past two and a half years of the real estate market in Croatia have been characterized by a sometimes hectic and euphoric buying interest. The upswing, which was already evident in recent years, gained even more momentum during the Corona years. While our forecast at the beginning of the Corona year 2020 was rather cautiously positive, a clear recovery from the initial Corona restraint was already evident during the year, which then partially turned into a buyer frenzy for many properties in 2021 and 2022. Some buyers even waived a property viewing and concluded purchase contracts based solely on video tours to get ahead of other buyers.
This "buying frenzy" noticeably reduced the supply in some parts of Croatia, and the prices of new or still available properties on the market increased significantly. The Croatian Bureau of Statistics recorded an annual house price development of initially 6.3% (2020) and 8.2% (2021) to 11.9% (1H 2022) for the period on the Adriatic coast (https://podaci.dzs.hr/en/statistics/prices/house-price-index/). In line with this, our broad investigation found an increase of 29% in square meter prices for houses and apartments on the Adriatic coast over the 2.5-year period.
Development of real estate prices in Croatia 2014 - 2023
The reasons for this significant price increase since 2020 include:
- Croatia's location: better accessibility by car compared to holiday destinations in southern Europe, which are mainly accessible by plane. It can be observed that numerous Balearic and Canary Islands enthusiasts are orienting themselves towards Croatia, as air travel becomes more complicated and expensive.
- Search for investment opportunities in times of high inflation in the buyers' home countries, negative interest rates, and favorable loans (until 2022)
- Expectation of the country's accession to the Euro and Schengen zones (since January 1, 2023) with corresponding price increases
- Significant improvement of the tourist and general infrastructure (internet, malls / shopping centers, markets, water sports, etc.)
- Significantly increased tendency to emigrate, especially among German buyers
- Rising construction costs for new buildings and a partially tightening supply in existing buildings
How did real estate prices develop in the regions of Croatia?
The average square meter price for all regions together increased from 2,400 euros in 2020 to almost 3,100 euros in the years 2022/2023, which corresponds to an increase of 29%.
| Region | ∅ Price / m² in 2020 | ∅ Price / m² in 2022/2023 | 3-year trend |
| Istria | 2,310 | 3,150 | 36% ▲ |
| Kvarner Bay | 2,290 | 2,950 | 29% ▲ |
| Northern Dalmatia | 2,110 | 2,810 | 33 % ▲ |
| Central Dalmatien | 2,750 | 3,440 | 25 % ▲ |
| Southern Dalmatia | 2,910 | 3,340 | 15 % ▲ |
| Croatia / Total | 2,400 | 3,090 | 29 % ▲ |
Particularly in the still relatively affordable northern part of Croatia (Istria to North Dalmatia), prices increased by up to 36% (Istria). But prices also rose noticeably in the traditionally more expensive Central and South Dalmatia by 25% and 15% respectively, from an already higher level.
Overall, the price differences between the regions of Croatia decreased; therefore, many buyers found alternatives for buying real estate outside of their originally favored region.
The reasons for this regional balance are likely due to the overall lower price level in the north and the good accessibility by car, which had a significant impact especially during the corona pandemic (when flying was more complicated). Croatia often benefited from its good accessibility by car at the expense of other regions in Southern Europe that are primarily accessible by plane. There were indeed a number of buyers who sold their properties on Mallorca or Tenerife and switched to the closer and more affordable Croatia.
Overall, the price differences between the regions of Croatia decreased; therefore, many buyers found alternatives for buying real estate outside of their originally favored region.
The reasons for this regional balance are likely due to the overall lower price level in the north and the good accessibility by car, which had a significant impact especially during the corona pandemic (when flying was more complicated). Croatia often benefited from its good accessibility by car at the expense of other regions in Southern Europe that are primarily accessible by plane. There were indeed a number of buyers who sold their properties on Mallorca or Tenerife and switched to the closer and more affordable Croatia.
Development trends of real estate prices for houses and apartments in Croatia.
| Average prices per m² / Property Type (€ / m²) | |||
| Region | House | Apartment | Total |
| Istria | 3,010 | 3,400 | 3,150 |
| Kvarner Bay | 2,690 | 3,230 | 2,950 |
| Northern Dalmatia | 2,590 | 3,120 | 2,810 |
| Central Dalmatia | 3,580 | 3,250 | 3,440 |
| Southern Dalmatia | 3,320 | 3,370 | 3,340 |
| Total | 2,970 | 3,250 | 3,090 |
What are the prices for houses in Croatia?
To purchase a house on Croatia's coast, one must now spend an average of just under 3,000 € / m². Middle Dalmatia with just under 3,600 € and Southern Dalmatia with around 3,300 € are noticeably more expensive than the rather northern part of the country.
Istria leads the northern part with around 3,000 € / m², followed by Kvarner Bay with just under 2,700 € / m² and North Dalmatia with just under 2,600 € / m². The currently cheaper areas in Croatia are located in the southern parts of Kvarner Bay - from Novi Vinodolski to about Novigradsko More/Karinsko More in Northern Dalmatia.
What are the prices for apartments in Croatia?
Regarding apartments, while in the years 2014/2015 the average prices per square meter for houses and apartments were practically the same at 2,050 €, the trend towards higher price increases in apartments, which was already slightly noticeable in 2020, has been increasing over the past two years. One now has to pay around 3,250 € / m² for an apartment, significantly more than for a house (2,970 € / m²).In terms of the individual regions, however, Istria is now leading with apartments, surpassing the traditionally high-priced, but much smaller in supply, Southern Dalmatia.
| Development Beginning 2020 - 2022 / 2023 Property Type | |||
| Region | House | Apartment | Total |
| Istria | +28% | +48% | +36% |
| Kvarner Bay | +24% | +33% | +28% |
| Northern Dalmatia | +29% | +39% | +33% |
| Central Dalmatia | +25% | +24% | +25% |
| Southern Dalmatia | +25% | +1% | +15% |
| Total | +26% | +33% | +29% |
Regarding the price development of the types of real estate, the north has clearly attracted the most attention: the extreme case of Istria with almost 50% increase in comparison to almost stagnant prices in the southern part of the country. In southern Dalmatia, there was only a slight increase in prices for apartments. The reasons for the now significantly higher price increases for apartments include:
- Trend towards "carefree home office by the sea"
- Croatian support program for the purchase of housing (loans, subsidies) for younger Croatians, which has a particularly strong effect on the lower price range.
- Generally lower required total budget for an apartment compared to a house.
What are the relevant factors for the cost of buying: sea view, proximity to the sea and year of construction?
What are the costs for real estate with sea view?
For the price factor of sea view, you have always had to invest more. For many buyers from inland areas of Europe, this is a deciding factor for the purchase; they buy what they do not have at home.
| Prices for Properties with sea view / without sea view in € | ||||||
| Region | House | Apartment | ||||
| with SV | w/o SV | Surcharge | with SV | w/o WV | Surcharge | |
| Istria | 3,430 | 2,590 | 840 | 3,620 | 3,120 | 500 |
| Kvarner Bay | 3,090 | 2,120 | 970 | 3,520 | 2,900 | 620 |
| Northern Dalmatia | 2,850 | 2,190 | 660 | 3,320 | 2,840 | 480 |
| Central Dalmatia | 3,760 | 3,230 | 540 | 3,390 | 3,060 | 330 |
| Southern Dalmatia | 3,650 | 2,850 | 800 | 3,350 | 3,410 | -60 |
| Total | 3,300 | 2,510 | 790 | 3,450 | 2,990 | 460 |
For houses with sea views, an average of just under 800 € / m² - that's about 30% - more has to be raised than for houses without sea views. While here - with general price increases, the extent of the factor decreased somewhat, it increased for apartments in the northern half of Croatia compared to 2020 - keyword: Home office/short trips with sea views for digitally working inland Europeans.
In southern Dalmatia, this time the factor of the sea view surcharge was not shown in this survey; in the general shortage of apartments, other factors were even more decisive for the purchase there.
What are the prices for properties directly on the sea in Croatia?
The desire for a property directly on the sea/ in the first row to the sea reflects the longing of many Europeans who do not have this proximity to the sea in their home regions or only know it from vacation. In connection with the scarcity of supply directly on the water, this of course has a price-driving effect. From the buyer's point of view, the following rough classification is often made: "1st row to the sea/directly on the sea", "near the sea/within walking distance of the sea", which coincides with the air line distance of about 300m for many, and "further away from the sea". We have adopted these factors in our study.
| Quadratmeterpreise in Abhängigkeit von der Nähe zum Meer in €/m² | ||||||
| Region | Prices: House / Villa | Prices: Apartment | ||||
| Seafront (0 - 30 m) |
Near (31- 300 m) |
Far (> 300 m) |
Seafront (0 - 30 m) |
Near (31- 300 m) |
Far (> 300 m) |
|
| Istria | 5,790 | 3,420 | 2,820 | 3,880 | 3,810 | 3,150 |
| Kvarner Bay | 4,150 | 2,520 | 2,690 | 4,040 | 3,750 | 3,010 |
| Northern Dalmatia | 3,730 | 2,510 | 2,440 | 3,850 | 3,320 | 2,770 |
| Central Dalmatia | 5,040 | 3,390 | 3,320 | 3,480 | 3,250 | 3,300 |
| Southern Dalmatia | 4,890 | 2,750 | 3,610 | 3,100 | 3,420 | 3,560 |
| Total | 4,530 | 2,940 | 2,840 | 3,730 | 3,490 | 3,080 |
When comparing the price differences between properties, one must pay an average of 60% more for houses that are in the first row to the sea than for those located further than 300 meters away, with an average price of 4,530 € / m². This price difference is particularly extreme in Istria, where it amounts to 105%, while it is around 53% from the Kvarner Bay to Central Dalmatia, and it is the lowest in South Dalmatia with an average of 35%. For apartments, the average difference is only 21%, which is much less pronounced than for houses. The northern region leads with surcharges ranging from 23% to 39%, followed by Central Dalmatia with a 5% surcharge, and South Dalmatia, where other factors are more price-determining on average.
Interestingly, since 2020, the prices of properties located further away from the sea have increased proportionally more than those in the "directly on the sea" category. The percentage surcharges have reduced from 75% to 60% and from 46% to 21%, respectively. This reflects the fact that due to the lack of availability and affordability of properties directly on the sea, people are turning to those located at a greater distance from the water.
What are the prices for new properties in Croatia?
One of the price-relevant factors, especially for buyers from abroad, is the construction year/age of the property and the price premium that has to be paid for new properties (defined here as up to 5 years old). These premiums are particularly pronounced in the Kvarner Bay, where new buildings are on average significantly more expensive at plus 1,380 € / m² than older buildings.
| Average Prices per sqm in €: Comparisation new and old Properties | ||||
| Region | Houses and Apartments | |||
| New: (from 2018) | Older: (until 2017) | Surcharge | ||
| Istria | 3,520 | 2,750 | 770 | |
| Kvarner Bay | 3,920 | 2,540 | 1380 | |
| Northern Dalmatia | 3,300 | 2,370 | 930 | |
| Central Dalmatia | 3930 | 3,240 | 690 | |
| Southern Dalmatia | 3,820 | 3,200 | 620 | |
| Total | 2,770 | 3,630 | 860 | |
The average square meter prices for new buildings vary only moderately within the individual regions. Northern Dalmatia, which is already relatively affordable, has the lowest average price for new buildings at around 3,300 € / m².
As for the development of price surcharges for new buildings, we also see a significant increase here. While the surcharge averaged 460 € / m² in 2020, it has increased significantly to 860 € / m² in 2022/2023 (houses 990 € / m², apartments 670 € / m²).
This also reflects the "run" on Croatian coastal properties in the last two and a half years. These "new" properties are often built a bit further away from the sea (due to the lack of fresh building land directly by the sea). However, they still find active demand, even though the developers/builders have struggled with sharply rising construction costs and have passed them on to buyers.
Many new construction projects are already presold during their planning phase.
Outlook / Forecast for the Real Estate Market in Croatia - further development
For the year 2023, we initially expect stability in some segments of the real estate market. For the following years, we anticipate a further increase in property prices, albeit possibly less pronounced than in the years of the pandemic.
Reasons for the initially cautious forecast in the current year 2023:
- ➤ For some buyer groups, money is not as readily available due to significantly increased cost of living, which reduces the available budget for a holiday property, as well as
- ➤ Rising loan interest rates for buyers
- ➤ The level of square meter prices - particularly for apartments - will increasingly be compared to other travel destinations
On the other hand, these factors are counteracted by a price decline and for a further excess demand:
- ➤ Croatia is now even more accessible/manageable (e.g. Schengen, Euro, bridge constructions)
- ➤ Croatia is still a relatively safe country (low burglary crime, etc.)
- ➤ 10% inflation for bank deposits, cash reserves, etc. on the buyers' side is a strong argument for investment forms that can avoid this depreciation.
- ➤ Rental income from holiday properties can also be attractive in the tourism sector.
- ➤ Reduction of market offerings (large number of sales and sellers withdraw offers due to inflation)
- ➤ Subsequent price increases for construction projects
Regarding the prospects in individual regions, we see good development opportunities especially for the southern Kvarner Bay area (Novi Vinodolski, Senj, Karlobag, Starigrad, Rab), the island of Pag, but also for the larger Zadar area, Murter - Sibenik, and the areas south of Split. The improved accessibility will now play a role in the latter. For example, the Peljesac Bridge was only opened in mid-2022.
We estimate the prospects for the following types of properties as particularly good:
➤ Apartments and low-maintenance (carefree) houses in the north of Istria to Northern Dalmatia, or around the airports, for "digital nomads" and people who simply come for short/temporary relaxation and do not want any maintenance effort for the properties
➤ Apartments/houses with garden, sea view, and close proximity to the sea, especially in the climatically favorable Dalmatia for winter vacationers and emigrants.
We see the following attributes for holiday properties as interesting
Property Prices in Istria 2022/2023
Istria peninsula ranks in the middle among the five regions on the Croatian Adriatic coast. The average cost per square meter of residential space there at the turn of the year 2022/23 is about 3,150 €. It is noteworthy that the northwestern subregions from Umag to south of Rovinj have relatively high average prices, while the southern/southwestern part of Istria - from Pula to Labin/Rabac - is still noticeably cheaper. From there towards Opatija, prices rise sharply again.
| Region | Ø Price/m² in € | Ø with Sea View | Ø without Sea View |
| Umag | 3,740 | 4,330 | 2,980 |
| Novigrad | 3,300 | 3,440 | 2,990 |
| Porec | 3,380 | 3,520 | 3,180 |
| Rovinj | 4,110 | 4,710 | 3,520 |
| Pula | 2,650 | 3,020 | 2,380 |
| Medulin | 2,830 | 3,080 | 2,600 |
| Labin / Rabac | 2,910 | 3,240 | 2,500 |
| Lovran / M. Draga* | 3,040 | 3,340 | 2,690 |
| Opatija* | 4,490 | 5,100 | 3,380 |
| Istria | 3,150 | 3,500 | 2,760 |
| * administrative assignment to the Kvarner Bay, not included in average calculations here. | |||
The price premium for sea views on properties is around 740 € / m², or 27%. This represents an increase compared to 2020, when the premium was still 660 € / m². This premium varies locally from 340 or 450 € in the Porec and Novigrad areas to 1,190 € and 1,350 € in the high-priced towns of Rovinj and Umag.
Property Prices Kvarner Bay 2022/2023
Overall, the Kvarner Bay has the coastal subregions with the lowest average square meter prices, ranging from 1,890 € / m² in Senj to the north of Novi Vinodolski (2,210 € / m²) and to the south in Karlobag/Starigrad Paklenica (2,450 € / m²).
| Region | Ø Price / m² in € | Ø with Sea View | Ø without Sea View |
| Lovran / M. Draga | 3,040 | 3,340 | 2,690 |
| Opatija | 4,490 | 5,100 | 3,380 |
| Rijeka | 2,530 | 2,780 | 2,130 |
| Cres / Losinj Island | 2,600 | 3,070 | 2,230 |
| Krk Island | 3,650 | 3,720 | 3,560 |
| Crikvenica | 2,890 | 3,080 | 2,390 |
| Novi Vinodolski | 2,210 | 2,310 | 2,160 |
| Senj | 1,890 | 2,250 | 1,530 |
| Rab Island | 2,930 | 2,870 | 2,990 |
| Karlobag / Starigrad Paklenica | 2,450 | 3,240 | 1,600 |
| Pag Island* | 2,430 | 2,520 | 2,250 |
| Kvarner Bay | 2,950 | 3,290 | 2,530 |
| * not included in the Kvarner Bay average calculation; categorization: Northern Dalmatia. | |||
Northward towards the Opatija Riviera, prices rise significantly; even the popular island of Krk has now reached a place in the upper ranks of Croatian coastal regions, with an average of 3,650
€ / m².
The following table shows that even properties within the Kvarner Bay in Croatia are on average more expensive if they have a sea view.
The following table shows that even properties within the Kvarner Bay in Croatia are on average more expensive if they have a sea view.
Property Prices Northern Dalmatia 2022/2023
With an average of 2,810 € / m², Northern Dalmatia is the most affordable region on the Croatian Adriatic coast, with prices generally increasing from north (Pag) to south towards Primosten Rogoznica, with the exception of Zadar as an urban magnet.
| Region | Ø Price / m² in € | Ø with Sea View | Ø without Sea View |
| Karlobag / Starigrad* | 2,450 | 3,240 | 1,600 |
| Insel Pag | 2,430 | 2,520 | 2,250 |
| Vir Island / Nin | 2,670 | 2,910 | 2,430 |
| Zadar | 3,140 | 3,520 | 2,420 |
| Ugljan / Pasman / Dugi Otok | 2,630 | 2,820 | 2,380 |
| Biograd na Moru | 2,560 | 2,850 | 2,290 |
| Insel Murter / Tisno | 2,860 | 2,740 | 3,070 |
| Vodice / Sibenik | 2,750 | 2,910 | 2,530 |
| Primosten / Rogoznica | 3,310 | 3,570 | 2,690 |
| Northern Dalmatia | 2,810 | 3,040 | 2,470 |
| * not included in the average calculation of Northern Dalmatia; assigned to the Kvarner Bay. . | |||
The table shows the average prices for properties in the individual towns of Northern Dalmatia.
As in other regions of the country, a premium is usually paid here for properties with sea views, which, however, averages around 570 € / m² and is slightly lower than in the Kvarner Bay or in Istria.
Property Prices Central Dalmatia 2022/2023
Overall, Central Dalmatia now has the highest average prices on the Adriatic coast at 3,440 € per square meter. The magnet city of Split, as the second largest city in Croatia, has reached the highest price level among the smaller regions at around 4,530 € / m² and now surpasses traditional spots such as Dubrovnik, Opatija, and Rovinj.
Split, along with its surrounding areas, benefits greatly from its relatively good transportation connections. On the one hand, there is an international airport, and on the other hand, Split is still within a day's drive without additional overnight stays. Additionally, Split is also a magnet for workers from nearby countries such as Bosnia and Herzegovina.
| Region | Ø Price / m² in € | Ø with Sea View | Ø without Sea View |
| Primosten/Rogoznica* | 3,310 | 3,570 | 2,690 |
| Ciovo Island / Trogir | 3,340 | 3,700 | 2,600 |
| Split | 4,530 | 4,480 | 4,580 |
| Solta Island | 2,420 | 2,440 | 2,280 |
| Brac Island | 3,490 | 3,850 | 2,950 |
| Vis Island | 4,170 | 4,660 | 3,510 |
| Omis | 3,100 | 3,090 | 3,110 |
| Makarska | 2,710 | 2,830 | 2,540 |
| Hvar Island | 3,870 | 4,520 | 3,210 |
| Central Dalmatia | 3,440 | 3,610 | 3,150 |
| * not included in the average calculation of Central Dalmatia; Assigned to Northern Dalmatia. | |||
The prices have increased significantly here - despite the already high starting point in 2020. In the popular holiday region of Trogir/Ciovo, the available inventory has significantly decreased. Properties directly by the sea are now very rare to find.
After Split, the price increase was still noticeable with 22% in Omis and 18% in Makarska, but overall slightly less pronounced than in the immediate vicinity of the airport.
Regarding the surcharge for sea view in Central Dalmatia, this is the weakest for the entire region, averaging 460 € / m² - despite very high surcharges on Hvar, Trogir/Ciovo, and the islands of Brac and Vis. This is due to the special situation of the Split/northern Omis subregion, where factors such as the influx of workers with priorities other than those of a holiday residence (such as sea views) play a decisive role.
After Split, the price increase was still noticeable with 22% in Omis and 18% in Makarska, but overall slightly less pronounced than in the immediate vicinity of the airport.
Regarding the surcharge for sea view in Central Dalmatia, this is the weakest for the entire region, averaging 460 € / m² - despite very high surcharges on Hvar, Trogir/Ciovo, and the islands of Brac and Vis. This is due to the special situation of the Split/northern Omis subregion, where factors such as the influx of workers with priorities other than those of a holiday residence (such as sea views) play a decisive role.
Property Prices Southern Dalmatia 2022/2023
In the area of Southern Dalmatia, real estate prices have risen less strongly compared to the other regions on the Adriatic coast, with an average increase of 15% since 2020.
| Region | Ø Prices / m² in € | Ø with Sea Views | Ø without Sea Views |
| Ploce / Peljesac | 2,470 | 3,090 | 1,370 |
| Korcula Island | 3,230 | 3,720 | 2,070 |
| Lastovo Island (n.s.) | 2,490 | 2,490 | n.s. |
| Dubrovnik | 3,960 | 3,950 | 3,980 |
| Cavtat / Konavle | 3,440 | 3,360 | 3,510 |
| Southern Dalmatia | 3,340 | 3,560 | 3,010 |
This highlights the relatively one-sided transportation connections of these small regions, as well as their dependence on air travel, which has become more complicated and expensive. In contrast, prices on the relatively easily accessible holiday island of Korcula rose significantly by +37%.
Since mid-2022, the bridge to Peljesac has been accessible by car, improving accessibility to Dubrovnik somewhat.
The factor of sea view does not play a role in the real estate market in Dubrovnik and Cavtat/Konavle; buyers were happy to be able to purchase a suitable property at all. In contrast, the holiday destinations of Korcula and Ploce/Peljesac have the highest average surcharges for sea views in all Croatian small regions on the Adriatic coast, at 1,650 and 1,720 € / m², respectively.
Since mid-2022, the bridge to Peljesac has been accessible by car, improving accessibility to Dubrovnik somewhat.
The factor of sea view does not play a role in the real estate market in Dubrovnik and Cavtat/Konavle; buyers were happy to be able to purchase a suitable property at all. In contrast, the holiday destinations of Korcula and Ploce/Peljesac have the highest average surcharges for sea views in all Croatian small regions on the Adriatic coast, at 1,650 and 1,720 € / m², respectively.
For further information on methodology and statistics, please contact us at info[at]panorama-scouting.de or use our contact form.