Real estate prices have not fallen, lack of supply remains the biggest challenge

The real estate market in Croatia continues to grow, but this growth is slowing under the pressure of high prices, it was stated during the 38th Real Estate Business Forum traditionally organized by the Croatian Chamber of Economy.

The president of the Real Estate Business Association at HGK Dubravko Ranilović said that the market and real estate prices continue to rise, but that it has now slowed a bit after the largest growth in the spring of this year.

– We see a slowdown in transactions. Last year, transactions fell by 6.9 percent – said Ranilović, adding that foreigners also bought less last year. He believes that used properties have reached prices at which they can no longer be sold because they are unrealistic. He hopes that next year, prices for some properties, especially used ones, could stabilize, even decrease.

The value of transactions in the real estate market in Croatia last year amounted to nine billion euros, and 190 thousand such transactions were completed, it was stated at the gathering.

The chief economist of HGK Goran Šaravanja claims that domestic demand in the real estate market is currently very pronounced.

– We are witnessing an increase in employment, a pronounced increase in wages, and consequently, we see a very solid increase in demand for housing loans – said Šaravanja.

From a macroeconomic perspective, all conditions for further pronounced activity in the real estate market are present in Croatia, he believes.

When asked about the rise in real estate prices, he said that high demand conditions that growth. He did not want to predict whether prices would rise next year. Unlike a good part of the EU, domestic demand in Croatia remains very pronounced, he said.

Chronic lack of supply, prices too high for most

Member of the Presidency of the Real Estate Business Association at HGK Lana Mihaljinac Knežević says that average realized prices are rising this year as well, but the growth rates are lower than in previous years.

She claims that the number of transactions, primarily residential properties, has fallen. She sees the reason for this in the chronic lack of supply, assessing that construction is still insufficient, but also that new construction being put on the market is at above-average prices that are inaccessible to most citizens.

– The biggest challenge of the Croatian real estate market is the lack of supply, there is simply too little new construction – she said.

She does not expect any major changes regarding real estate prices in 2025 and calls for a correction of prices for used properties, which are now, in her opinion, overvalued.

Significant share of foreigners and returnees among buyers

Istrian representative of Dogma Real Estate Lorena Kogej predicts ten to fifteen percent fewer transactions this year than last year. She says that demand for real estate in Istria remains high, both for villas and residential properties.

– Something is always sold, and those who want can work – she said, adding that 70 to 80 percent of buyers are returnees from emigration. Prices of new constructions in Istria range from three to three and a half thousand euros per square meter to six, seven thousand euros.

The president of the professional group of HGK Split-Dalmatia County Jasminka Biliškov claims that the real estate market in Dalmatia is very lively, active, and stable, even with a reduced number of transactions this year. Every third buyer is a foreigner, said Biliškov, adding that a lot is being built but new construction is still lacking, and prices in Split in better locations are around five thousand euros. She also does not expect a significant increase in real estate prices next year.