Year 2022 was unique and more than successful for real estate market in Croatia.
Demand for Croatian properties was deferred for 2 years due to COVID-19 and all those buyers who were waiting for the abolition of restrictions flooded Croatia starting in February 2022. It was triple demand in comparison with all the previous years in all the categories of real estate. Rural villas in mid-Istria suddenly became the best-sold product, along with newly built apartments in the Zadar area. Krk Island was another magnet for the buyers of modern flats and traditional houses.
By the end of the summer, the market of already built properties offered for sale was already almost empty. The Sellers could expect properties to be sold within 1-2 months and the speed of desision making was amazing. It was a Seller-market, the Sellers were aware of that and started to rise the prices for 5-10% weekly. Looking at the scenery after the battle for properties we can say that during last year prices rose 80-100%, i.e. they doubled for 80% of properties.
Cheap apartments below 100,000 eur are presently non-existent products. The average price for a 2-bedroom apartment is starting now from 200,000 - 250,000 eur, but you can also find some modern luxury options for 400,000 - 600,000 eur.
The concept of a new modern villa with a swimming pool and 3 bedrooms for 350,000 eur has gone into the past. You will hardly find the one below 600,000 eur now close to the sea.
Of course, there are still some cheaper older opportunities, hot options, and houses for adaptation and modernization - but as a whole, the pricing level is now quite European.
Do we expect prices to go down in Croatia, following some negative trends in the realty market in Germany and some other EU countries?
No - and we will explain why.
The first reason is that Croatia is entering the Schengen zone as of January 1st, 2023. You will no longer see traffic jams at Dragonja and Secovlje which mark the border between Croatia and Slovenia. It means more visitors, and more tourists in 2023. Tourism is a driver for the real estate market over the Adriatic sea.
The second reason is that Croatia is entering the EURO zone as of January 1st, 2023. We have already witnessed EURO currency acceptance by Slovenia, Slovakia and other EU countries - and everywhere it leads to a rise in realty and other prices. We should expect at least a 10-15% adjustment in a plus zone.
In this connection, we can expect the Croatian real estate market to be one of the most stable markets in 2023 and even one of the rising markets.
The offer will considerably grow next year as thousands of new properties are now being built by Croatian and EU investors. Istria is becoming a modern prestigious destination where the typical property is a 3-4 bedroom villa with a swimming pool. Less and fewer people are buying apartments, COVID-19 pushed people to be more isolated and buy their own private homes.
Before the constructors were building cheap holiday homes, now the villas are built with underfloor heating, heat pumps and other facilities and equipment to ensure comfort 365 days a year.
Dalmatian weekend houses of Zagreb inhabitants are being replaced by luxurious villas by the sea with beautiful sea views. The coast is becoming more attractive in terms of the quality of accommodation and real estate offered than Cote d'Azur.
The new face of Croatia is young and stylish, making you fall in love from the very first glance.
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