Foreigners Withdraw from the Market: Dramatic Decline in Real Estate Purchases in 2025.

Foreign citizens purchased significantly fewer properties in Croatia in the first nine months of 2025 compared to the same period last year, according to the latest data from the Tax Administration. In total, foreigners bought around 6,592 properties, which is about 1,900 fewer than last year in the first three quarters, representing a decline of approximately 22 percent. The decline is evident in almost all countries, including traditionally the most active buyers: Germans, Slovenians, and Austrians.

According to the Tax Administration data, citizens of Germany, who have been the most numerous foreign buyers of real estate in Croatia for years, concluded 1,393 transactions from January to the end of September this year. In the same period in 2024, they concluded 1,928, while in the entire 2023, they had as many as 3,017 transactions.

Double-Digit Decline

A similar trend is visible among Slovenian citizens – this year, in the first nine months, they achieved 1,932 transactions, while in the same period in 2024, they had 2,617, and in the entire 2023, even 3,407. This is a decline of about 26 percent compared to last year.

Austrians, the third most active buyers, recorded 648 transactions by the end of September 2025, which is significantly less than 829 in the same period in 2024.

A double-digit decline, between 15 and 40 percent, is also recorded among Czechs, Italians, Hungarians, Dutch, Poles, and Slovaks. Only Serbian citizens purchased more properties: 131 compared to 102 in the same period last year.

Is it Too Expensive for Foreigners?

This trend is the result of a combination of factors: a slowdown in the markets of the countries from which the largest number of buyers come, higher interest rates in the Eurozone, and a significant increase in real estate prices in Croatia.

These data were commented on by Borislav Vujović, the owner of the real estate agency Opereta, who says that interest from foreigners in Croatian real estate has weakened this year primarily due to economic circumstances in the countries from which most buyers come.

– In addition, there are not enough properties available that fit their budgets. The biggest problem is the mismatch between what buyers are looking for and what is available. On the coast, properties up to 500,000 euros are most sought after, but there are very few of those on offer. Unlike a few years ago, there are now significantly fewer buyers with large budgets, for example, above one million euros – explains Vujović.

Weaker Returns

The decision of foreigners is also influenced by increasingly weaker returns on investments in Croatian real estate compared to some competing markets, as well as stricter rental conditions – neighbor consent is now required, the tax treatment has changed, and all of this together affects the profitability of investments.

A similar situation prevails in the domestic market, especially in Zagreb.

– Although small apartments are the most sought after, they are lacking in supply because, due to regulations in the GUP, which prescribe a certain number of parking spaces per apartment, it is not profitable for builders to construct smaller apartments – says Vujović.

Despite the significant decline in the number of transactions, both from foreigners and domestic buyers, he does not expect a drop in prices, but rather their stagnation.

Real Decline

– If a correction occurs, it will likely relate to asking prices that significantly deviate from realized prices, especially for used apartments. I think it is more realistic to expect stagnation than a decline, but given the elevated inflation, stagnation actually means real decline in value – concludes Vujović.

The data clearly show that foreign demand for Croatian real estate has been on a downward trajectory for the third consecutive year. If this trend continues in the last quarter, 2025 could end with the lowest number of transactions by foreign citizens since 2021.

It is worth noting that the growth in interest from foreigners in Croatian real estate has been on the rise since Croatia’s accession to the European Union. Ten years ago, in 2014, they purchased 4,843 properties, and in the record year of 2022, as many as 13,336. It is estimated that foreigners have purchased real estate in Croatia worth over seven billion euros.