Property Tax Has Not Significantly Changed the Supply of Rental Apartments

Although claims emerged in the media at the end of March that the introduction of property tax caused an increase in the number of rental and sales listings for apartments, data from the Njuškalo portal suggests that it is still too early for such conclusions. During April of this year, the number of rental listings in Zagreb did indeed rise to around eight thousand, representing a significant jump compared to April of last year.

However, in the meantime, the number of listings has fallen, and currently, around 5250 apartments are available for rent on Njuškalo, which is less than in April 2024. On a monthly basis, the number of listings can fluctuate significantly; for instance, in September of last year, only 3500 apartments were advertised for rent in Zagreb. Therefore, for more serious analyses, it is advisable to observe longer-term trends or compare the same months across years.

In Zagreb, a constant decline in supply has been evident for some time. In April of last year, there were more than ten thousand active listings for apartments for sale on Njuškalo, while in the same month of the current year, there were fewer than eight thousand. An additional decline was recorded in May, when the number fell below 7900.

At the national level, the situation is somewhat different. The number of apartments for rent has been continuously increasing in recent years, regardless of the property tax. In April 2022, there were around 7800, last year around 9300, and this year as many as 13,658. Currently, around 12,000 listings are active.

– I think it is too early to draw conclusions about the impact of property tax – assesses Lana Mihaljinac Knežević, director of the Zagreb West agency.

– I expect a certain impact from the amendments to the Hospitality Act and the Building Management and Maintenance Act, which regulate short-term rentals. Currently, some owners are calculating and considering switching from short-term to long-term rentals, but these are relatively small numbers. Any effects of the legal changes will only be visible over a longer period, but I believe that the supply should be increased through other mechanisms as well – says Knežević Mihaljinac.

A slight increase in supply is noted by Borislav Vujović, owner of the Opereta agency, who emphasizes that some owners have re-listed their apartments for rent, while some apartments have shifted from short-term to long-term rentals. However, these are minor shifts that, judging by prices, have not significantly affected housing affordability so far, which was expected from the legal changes.

Namely, the trend of rising prices has continued this year, albeit at a somewhat slower pace than before. The average advertised rental price on the Njuškalo portal in April 2022 was 804 euros, while this year it has risen to 1079 euros. Median prices are somewhat lower: three years ago they were 600 euros, last year 800, and in April 2025, 850 euros.