Property sales down 42%, yet prices keep rising? Expert explains what’s happening in Croatia

ZAGREB, 7 July 2026 – Property sales in Croatia have fallen by 42% over the past year, despite residential property prices continuing to rise, highlighting the contrasting trends shaping the country’s housing market.

According to the latest figures, home prices increased by 14% over the same period, almost three times the European Union average of around 5%.

Speaking to RTL Danas, Dubravko Ranilović, president of the Real Estate Business Association at the Croatian Chamber of Economy (HGK), said the decline in transactions is not a recent development, with property turnover falling for the fourth consecutive year.

Ranilović said several factors are behind the slowdown, including high property prices, limited housing supply and a large number of vacant homes that remain outside the market.

He added that recent government measures aimed at improving housing affordability are intended to address the shortage of available properties.

Despite weaker sales, prices have continued to rise as residential property remains an attractive investment. Ranilović said relatively low interest rates combined with persistent inflation have encouraged many buyers to purchase homes as an investment rather than solely to meet housing needs.

He also noted that the lack of available housing continues to support higher prices.

Although the number of transactions has fallen sharply, Ranilović does not believe Croatia is facing a property market collapse similar to that seen after the 2008 global financial crisis.

He said market conditions are different today, but added that some price corrections are likely, particularly when owners who need to sell for personal reasons enter the market.

Ranilović said it is impossible to predict when broader price adjustments might occur, pointing to global economic factors that continue to influence both the property market and the wider economy.

He also revealed that many properties currently listed for sale fail to attract buyers, with fewer than one-third of advertised properties ultimately being sold. According to him, this suggests that many homes are being offered at unrealistic prices.