Domestic Investors Take Over the Market: 59 Percent of All Real Estate Transactions

The share of domestic investors in the total volume of transactions in commercial real estate in Croatia reached a record 59 percent last year, according to an analysis by Avison Young. This is double the figure from 2021, when the share of domestic investors was only 29 percent.

Experts emphasize that domestic investors are crucial for stability as they ensure market liquidity and facilitate exit strategies for existing owners. The market has become significantly more sophisticated in recent years, with several property managers specializing in investments in commercial real estate emerging.

The most common interest of domestic investors is in properties with individual values of up to 15 million euros. However, with further capital accumulation and the emergence of new funds and asset managers, it is expected that domestic investors could compete with foreign players in the largest investment transactions in the future, according to Avison Young.

Last year, the commercial real estate market was valued at 340 million euros, which is 60 percent less than the previous year, due to a lack of supply of higher-value investment properties. The turnover of this type of real estate varies from year to year, ranging from 400 to 900 million euros, and this volatility is conditioned by supply, as demand is not lacking. Approximately 40 properties worth over one million euros are sold annually.

In the first half of the year, there are usually fewer transactions, and this was also the case in the first six months of 2025, when the total volume amounted to 100 million euros. In addition to domestic investors, last year, Hungarians (18 percent) were among the most active, followed by investors from Poland, Slovenia, and Germany.