Split apartment prices hit record highs as sales fall

Split

Split’s real estate market is facing unprecedented challenges as apartment prices continue to soar, while sales of resale properties have dropped sharply.

In the first year following the introduction of the new property tax, Croatia’s Tax Administration issued around 90,000 rulings. Owners of approximately 80,000 properties requested exemptions, HRT said.

It is estimated that the tax could generate around €70 million in revenue.

The property tax ranges from €0.60 to €8 per square metre, depending on location, with 80% of revenue going to cities and 20% to counties.

The tax applies to properties that remain vacant or are not rented out for at least ten months a year.

Soaring Prices, Falling Sales

Resale apartment sales in Split have fallen by as much as 30%. Experts believe that prices are significantly overvalued and that a market correction is overdue.

“When a buyer pays the price of a resale apartment and then invests in renovations, the total cost is comparable to a new build,” Jasminka Biliškov, Deputy President of the Croatian Chamber of Commerce’s Real Estate Association, told HRT.

Affordability has been a pressing issue in Split for years. Many residents point out that current apartment prices are out of sync with local wages.

Issues such as poor transport links to Sinj, Imotski, and Vrlika, as well as irregular ferry services, exacerbate the problem.

Biliškov adds that land within Split city limits is nearly exhausted. Available space for new residential buildings is limited to areas around 20 km from the centre, where affordable rental housing could potentially be developed.

The Rental Struggle

Many residents cannot afford either a mortgage or rent.

While the city has promised to build 1,000 affordable apartments for young people, implementation remains crucial. Despite the declining sales volume, prices per square metre continue to climb. Coastal areas, in particular, are seeing record-breaking values.

In Split, average resale apartment prices range from €4,000 to €4,500 per square metre in wider urban areas. New developments cost between €6,000 and €10,000 per square metre, with luxury projects exceeding €12,000.

“The demand is much higher than the supply. Buildings are often sold out before the first floor is even completed,”Matej Samardžić, head of the Dalmatia region at a real estate agency, explained to HRT.

Local residents feel the strain. One Split citizen shared:

“I don’t think one lifetime would be enough to buy a property here. I currently share a flat because it’s impossible to live in a larger apartment on a single salary.”

Limited Supply Drives Prices

The scarcity of land and high demand mean that even unfinished new-build apartments are often sold before construction is complete. Real estate sales advisor Maja Armanda emphasises:

“The situation is such that demand far exceeds supply. A building that isn’t finished is already sold.”

With rising prices, limited new construction, and a tax on vacant properties, Split’s housing market is at a crossroads. For residents and policymakers alike, finding solutions for affordability and sustainable development is becoming ever more urgent.