Residential Real Estate - Croatia

The Residential Real Estate market market in Croatia is projected to reach US$258.30bn in 2024.
The market is expected to show an annual growth rate (CAGR 2024-2029) of 4.76%, resulting in a market volume of US$325.90bn by 2029.
In global comparison, China is expected to generate the highest value in the Real Estate market, reaching US$112.9tn in 2024.
The demand for luxury coastal properties in Croatia is increasing, driven by the country's stunning Adriatic coastline and booming tourism industry.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Croatia has been experiencing significant growth and development in recent years.

Customer preferences: One of the main customer preferences in the Croatian Residential Real Estate market is a strong demand for properties located in coastal areas. Croatia's beautiful coastline, with its crystal-clear waters and picturesque landscapes, attracts both domestic and international buyers looking for vacation homes or investment properties. Additionally, there is a growing interest in properties located in urban areas, particularly in the capital city of Zagreb, as more people are seeking convenient and modern living spaces.

Trends in the market: A key trend in the Croatian Residential Real Estate market is the increasing popularity of apartment living. Many buyers, especially young professionals and retirees, are opting for apartments due to their affordability and low maintenance requirements. This trend is driven by the limited availability of land and the desire for a more urban and connected lifestyle. As a result, there has been a surge in the construction of apartment complexes in both coastal and urban areas. Another trend in the market is the rise of sustainable and energy-efficient properties. Buyers are increasingly concerned about the environmental impact of their homes and are seeking properties that are built with eco-friendly materials and equipped with energy-saving features. This trend is in line with global sustainability movements and reflects the growing awareness of environmental issues among buyers in Croatia.

Local special circumstances: Croatia's Residential Real Estate market is influenced by its unique geographic location and tourism industry. The country's coastal areas, including popular destinations such as Dubrovnik and Split, attract a large number of tourists each year. This has led to a high demand for rental properties, especially during the summer months. As a result, many investors are purchasing properties in these areas to capitalize on the tourism market and generate rental income. Furthermore, Croatia's accession to the European Union in 2013 has had a positive impact on its Residential Real Estate market. The EU membership has increased investor confidence and opened up opportunities for foreign buyers to invest in Croatian properties. This has contributed to the growth of the market and the influx of international capital.

Underlying macroeconomic factors: The development of the Croatian Residential Real Estate market can be attributed to several underlying macroeconomic factors. The country's stable economic growth, low interest rates, and favorable mortgage conditions have made it easier for buyers to enter the market and secure financing. Additionally, Croatia's improved infrastructure, including better road connections and increased air travel, has made the country more accessible and attractive to both domestic and international buyers. In conclusion, the Residential Real Estate market in Croatia is experiencing growth and development driven by customer preferences for coastal and urban properties, the increasing popularity of apartment living, and the demand for sustainable and energy-efficient homes. The local special circumstances, such as the country's tourism industry and EU membership, further contribute to the market's growth. Underlying macroeconomic factors, including stable economic growth and favorable mortgage conditions, also play a significant role in shaping the market.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate - Croatia

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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