Residential Real Estate Leases - Croatia

In Croatia, the Residential Real Estate Leases market market is expected to generate a revenue of US$876.80m in 2024.
Apartment Leases holds the largest share in this market segment, with a projected market volume of US$531.60m in 2024.
Looking ahead, the revenue is anticipated to exhibit a compound annual growth rate (CAGR 2024-2029) of 0.00%, leading to a market volume of US$876.90m by 2029.
Croatia's residential real estate leasing market is experiencing a surge in demand due to its beautiful coastal locations and tourist attractions.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The residential real estate leases market in Croatia has been experiencing significant growth in recent years.

Customer preferences: One reason for this growth is the increasing demand for rental properties among Croatian residents. Many people are choosing to rent rather than buy a home due to the flexibility and affordability it offers. Renting allows individuals to live in desirable locations without the financial commitment of purchasing a property. Additionally, younger generations are prioritizing experiences and mobility over homeownership, further driving the demand for rental properties.

Trends in the market: Another trend in the market is the rise of short-term rentals, particularly through online platforms such as Airbnb. Croatia's popularity as a tourist destination has led to a surge in demand for short-term rental accommodations. Many property owners are taking advantage of this trend by renting out their homes or apartments to tourists, especially during the peak tourist seasons. This has created a lucrative market for property owners and has contributed to the overall growth of the residential real estate leases market.

Local special circumstances: Croatia's coastal regions, such as Dubrovnik and Split, have seen particularly high demand for rental properties due to their popularity among tourists. The stunning beaches, historical sites, and vibrant culture attract visitors from all over the world, leading to a constant need for accommodations. This has created a unique opportunity for property owners in these areas to generate income through short-term rentals.

Underlying macroeconomic factors: Several macroeconomic factors have also contributed to the growth of the residential real estate leases market in Croatia. The country's stable economic growth and increasing employment rates have boosted consumer confidence and purchasing power. This has made it easier for individuals to afford rental properties and has fueled the demand for housing. Furthermore, Croatia's membership in the European Union has opened up opportunities for foreign investors and expatriates to enter the market. Many foreigners are choosing to rent properties in Croatia, either as a second home or as a long-term residence. This influx of international renters has further stimulated the residential real estate leases market. In conclusion, the residential real estate leases market in Croatia is experiencing growth due to the increasing demand for rental properties, the rise of short-term rentals, the popularity of coastal regions among tourists, and favorable macroeconomic factors. These factors combined have created a thriving market for rental properties in Croatia.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 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 Leases - Croatia

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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