Croatia among Europe’s fastest-growing property markets

Zagreb

Croatia’s property market continued its strong upward trajectory in 2025, with prices rising by 16.1%, placing the country among the fastest-growing in the European Union.

Despite a slight decline in the number of transactions compared to peak years, the market remains significantly more active than a decade ago, confirming a long-term growth trend.

According to Tax Administration data, a total of 117,359 property transactions were recorded in 2025. Activity increased in the second quarter, dipped slightly in the third, and peaked in the final quarter of the year.

The market has expanded steadily since 2015, recovering from earlier downturns and reaching a high point in 2022 and 2023 with around 137,400 transactions annually. While 2024 and 2025 saw moderate declines, demand remains resilient.

Zagreb and the Adriatic lead

Market activity is concentrated in urban centres and coastal regions. Zagreb accounted for 15.36% of all transactions, followed by key Adriatic counties such as Zadar, Primorje-Gorski Kotar and Split-Dalmatia, underlining the continued importance of tourism-driven demand, Lider.hr writes.

Foreign buyers remain key

Foreign buyers accounted for 8.05% of all transactions in 2025, totalling 9,444 purchases. Slovenian buyers led the way, followed by Germans, with notable interest also from Austria, the Czech Republic, Hungary and Italy.

Prices outpacing inflation

Property prices have significantly outpaced inflation, which stood at 3.8% in February 2026. New builds rose 14.7% annually, while existing properties increased by 16.4%, highlighting strong demand across the market.

Across the EU, average price growth was 5.5%, far below Croatia’s rate. Only Hungary and Portugal recorded higher increases.

No signs of a downturn

Analysts say there are currently no indicators of a major market correction. Strong demand, relatively competitive prices compared to Western Europe, and continued foreign interest are keeping the market buoyant.

While short-term fluctuations remain possible, Croatia’s property sector is expected to stay stable, supported by investment demand, fiscal incentives and its ongoing appeal as a tourism destination.