What to expect from the real estate market in the next 12 months
The real estate market in Croatia has experienced strong growth in recent years, but we are entering a period in which this growth is increasingly slowing down. Although prices continue to rise, the pace is no longer as dynamic as before, but is moving into a calmer phase of stabilization. More and more experts believe that moderate but stable growth awaits us in the next 12 months, with possible differences depending on the region and type of property. Buyers and investors, therefore, are entering a period that is not marked by sudden jumps, but by more thoughtful decisions and more realistic expectations.
New constructions continue to command high prices, mainly because the supply is limited and construction costs remain high. In many cities, especially Zagreb, Split and Zadar, demand remains strong, while the number of new projects is not increasing significantly. This maintains pressure on price growth, although not as dramatically as before. Older properties inland and in less attractive locations could enter a phase of stagnation, and the difference between “top locations” and the rest of the market will be even more pronounced.
Interest rates will play a major role in market movements in the coming year. If they remain at their current higher levels, buyers who rely on housing loans could be more cautious about purchasing. This is especially true for first-time buyers and young families, for whom high monthly payments reduce the affordability of real estate. However, demand from investors and foreign buyers, especially on the coast, remains strong, which partially offsets the potential slowdown. Tourist regions are likely to maintain strong buying and selling dynamics for some time to come.
In the coming year, we will also likely see an increasing difference in demand by type of apartment. Smaller apartments, studios and one-bedroom apartments are increasingly in demand due to rising prices and the needs of landlords. Such properties sell quickly because they are sought after by investors and singles, as well as young buyers entering their first housing loans. Larger apartments remain attractive, but in a smaller circle of buyers, so their turnover may be somewhat slower.
All in all, the market is entering a period in which there will be no drastic changes, but a gradual adjustment of supply and demand. A drop in prices is not expected, but growth is expected to slow down and the relationship between buyers and sellers will be more realistic. For buyers, this can mean more time for reflection and better negotiation, while for investors, it remains safe ground with a properly chosen location and type of property. Although challenges remain, the real estate market in Croatia continues to prove resilient and attractive, especially at times when other types of investment carry greater risk.