Croatia among top risers as property prices across EU climb
- by croatiaweek
- in News
Croatia
According to data for the fourth quarter of 2024, property prices across the European Union saw a significant rise, with an average year-on-year increase of 4.9%.
However, the growth was not evenly spread. Bulgaria recorded the biggest jump, with prices surging by 18.3%.
It was followed by Hungary (13%), Portugal (11.6%), and Spain (11.4%). The Netherlands (10.8%), Poland (10.4%), and Croatia (10.1%) also saw strong growth, HRT said.
Experts believe that prices are likely to continue rising throughout 2025, although at a slower pace than in recent years.
The latest figures show a steady upward trend, especially for newly built homes. Despite fewer property transactions being recorded, prices are still rising, suggesting that demand continues to outstrip supply.
One of the main challenges across the EU – including Croatia – remains affordability.
Even as fewer homes are being sold, prices remain high, largely driven by a lack of available housing and high demand.
Boro Vujović, director of the real estate agency Opereta, told HRT that inflation and the limited supply of homes make it unrealistic to expect prices to fall anytime soon.
He predicts that prices will remain at current levels or even rise slightly compared to last year.
Vujović also highlighted a shortage of new developments on the market. As a result, older flats are being sold at what he describes as “possibly undeservedly high prices”.
There may be a solution on the horizon. Some estimates suggest that city- and state-owned land in central Zagreb could accommodate around 32,000 new flats.
However, this would require political will and action from relevant authorities to release the land for development.
Although the government did not offer housing loan subsidies in 2024, the volume of housing loans remained steady, showing an annual growth of around 10%.
However, upcoming measures from the Croatian National Bank (HNB), aimed at slowing down borrowing, could lead to a cooling of the market in the second half of the year.
