In January-November 2025, the Croatian residential real estate market cemented its status as one of the most expensive and dynamically growing in the EU. Official statistics and private research show double-digit price growth amid a slowdown in the number of transactions and an increased role of the state in addressing the issue of housing affordability.
According to the State Statistics Office (DZS), the average price per square meter of new housing in Croatia in the first half of 2025 was €2,754. This is approximately 15.9% more than in the first half of 2024 and 5.3% higher than in the second half of 2024.
By region. – Zagreb: around €2,958 per square meter (+4.5% year-on-year), rest of Croatia: around €2,511 per square meter, with growth in these cities and towns reaching 22% over the year, reflecting the rapid rise in housing prices in coastal and tourist regions.
The House Price Index shows that in the second quarter of 2025, residential property prices rose by 4.4% compared to the previous quarter and by 13.2% compared to the same period in 2024. According to Eurostat, this is one of the highest figures in the EU in terms of quarterly and annual growth.
According to market analysts’ estimates, the average price of housing (including secondary housing) in the fall of 2025 approached €2,800–2,900 per square meter across the country, which is approximately 70–80% higher than in 2020. At the same time, the average price of apartments is estimated at over €3,800–4,100 per square meter, while houses are slightly cheaper.
Market data shows that the gap between the coast and inland regions is widening:
In Split, the average asking price in October 2025 reached around €5,315 per square meter, almost 15% more than a year earlier.
In Dubrovnik, an apartment costs on average more than €4,100 per square meter, and in prestigious locations, the range is €5,000–7,000 and above.
In Istria and popular locations in Central and Southern Dalmatia, typical prices range from €3,500 to €7,000 per square meter, depending on the class of the property and its proximity to the sea.
Inland regions (e.g., Slavonia) remain significantly cheaper, often in the range of €1,000–2,000 per square meter.
In Zagreb, the average price for apartments is estimated at around €3,400–3,500 per square meter, but there is a significant gap between districts within the city. Analysis of private listings shows that the central and “tram” areas of the capital are significantly more expensive than the suburbs.
A separate trend in 2025 is stagnation and even a slight decline in house prices in some segments. According to one of the largest ad portals, the average price of houses in Zagreb in the middle of the year was around €1,200 per square meter, with price growth slowing more sharply than for apartments.
Despite high prices, the market has not yet shown a full correction. Some analytical reviews note a decline in the number of transactions in the first half of 2025, but this has had virtually no impact on price levels, especially in coastal regions, where supply remains limited.
At the same time, rising interest rates and tighter mortgage lending conditions, which began in 2023–2024, are limiting the options for some households, especially young families. In 2025, the Croatian National Bank tightened macroprudential requirements for banks and mortgage loans in an effort to curb overheating in the housing market and risks to financial stability.
According to Arvio’s report for the first quarter of 2025, foreigners accounted for about 7.19% of all real estate transactions in Croatia. The most active buyers were:
citizens of Slovenia – approximately 30.2% of foreign transactions,
Germany – approximately 21.1%,
Austria – approximately 10.4%.
The total number of transactions involving foreigners has been declining for the third consecutive year: an estimated 13,300 in 2022, 12,300 in 2023, and 11,600 in 2024.
Foreigners traditionally concentrate on the Adriatic coast (Istria, Kvarner, Dalmatia) and the islands, where new apartments and houses ready for immediate occupancy or rental are in demand. It is external demand, combined with limited supply, that largely supports the high and rising price level.
The sharp rise in prices and the decline in housing affordability prompted the government to adopt the first comprehensive National Housing Policy Plan until 2030 in 2025.
Key facts on which the document is based:
there are about 2.39 million housing units in the country, with about 40% not used for permanent residence,
over the past five years, the price of new apartments has increased by approximately 54%,
young families face difficulties in accessing mortgages and a shortage of affordable housing.
In fact, the state is trying to simultaneously cool down overheated market segments and expand the supply of affordable apartments, especially in the medium and long-term rental market.
Based on statistics for the first three quarters and market participants’ expectations, the baseline scenario for the end of 2025 and 2026 is as follows:
Prices will continue to rise, but at a slower pace than the double-digit rates seen in 2023-2024. Already in the second half of 2025, some analysts are noting a slowdown in growth, especially in the housing segment and in regions far from the sea.
The gap between the coast and inland regions will remain: tourist and premium locations will become more expensive faster, while “continental” Croatia will remain relatively affordable, which may support internal migration and local demand.
According to analysts’ estimates, the share of foreign buyers will remain at around 8% of all transactions by the end of 2025 or will decline slightly due to high prices and affordability issues.
The implementation of the National Housing Plan until 2030 will play an important role, including the launch of affordable rental programs, the activation of vacant housing stock, and the adjustment of subsidized home purchase programs.
For Croatia, where real estate has become a key tool for household savings and an object of interest for foreign capital, the coming years will be a test of its ability to combine the goals of economic growth, tourism development, and ensuring basic housing affordability for its own citizens.
