Croatia’s red-hot property market is finally cooling off—and it looks like foreigners are leading the exodus.
After years of snapping up seaside apartments and quaint countryside villas, overseas buyers are now giving Croatian real estate the cold shoulder. New figures show interest is dropping fast—and experts are sounding the alarm.
It’s not just a blip. According to the Croatian National Tourist Board, even tourist numbers are down—and many of those would-be sunseekers usually double as house-hunters. Now, they’re just not turning up.
Estate agents are feeling the pinch too, reporting a sharp drop in demand from international clients. The trend varies depending on location, but the overall picture is clear: foreigners are pulling out.
And the Tax Administration agrees. Their data shows that foreign interest has been sliding for two years straight—and the first half of 2024 offers no sign of recovery.
THE GLORY DAYS
Back in 2015, there were fewer than 5,000 foreign property purchases. Fast-forward to the post-pandemic boom, and 2022 saw a record-smashing 13,344 deals done by foreign buyers—nearly 10% of all real estate transactions that year.
Apartments and flats topped the wish list, with over 4,000 snapped up, followed closely by “miscellaneous” properties like warehouses, pools, and even private roads. Also on the shopping list? Building plots, houses, and the occasional forest.
But 2022 was more than just a high—it marked a turning point. Since then, the numbers have nosedived.
WHAT WENT WRONG?
Experts say the initial boom was fuelled by Croatia joining Schengen and adopting the euro. But since then, prices have skyrocketed, and the world’s political and economic chaos has made buyers think twice.
In 2023, foreign purchases dipped to 12,278. And the downward slide continued into 2024, with just 11,623 foreign transactions recorded—nearly 13% less than in 2022.
Even more shocking? From January to June this year, only 4,355 properties were sold to foreigners. That’s less than half the figure from the same period last year.
A MARKET ON THE EDGE?
Estate agents are already feeling the squeeze. “Sellers who banked on foreign money are having to lower their prices or wait longer to make a sale,” says one insider.
While flashy new builds in prime locations are still shifting, older and less maintained properties are stagnating—and in some cases, prices are already dipping.
If the trend continues, the Croatian property market could be in for a major reset. Less glamorous locations might see a serious price correction, and the big question is whether local buyers can fill the gap.