
Property sales down 42%, yet prices keep rising — expert explains what's happening in Croatia
Property sales in Croatia dropped 42% in a year while prices rose 14%. An expert explains the supply shortage and investment demand driving the market.
Property sales in Croatia have fallen by 42% over the past year, despite residential prices continuing to rise, highlighting the contrasting trends shaping the housing market. According to the latest figures, home prices increased by 14% over the same period — almost three times the EU average of around 5%.
Speaking to RTL Danas, Dubravko Ranilović, president of the Real Estate Business Association at the Croatian Chamber of Economy (HGK), said the decline is not new, with turnover falling for the fourth consecutive year. He pointed to high prices, limited supply and a large number of vacant homes that remain outside the market. Recent government measures on affordability aim to address the shortage of available properties.
Despite weaker sales, prices keep climbing because residential property remains an attractive investment. Ranilović said relatively low interest rates combined with persistent inflation have pushed many buyers to purchase homes as an investment rather than purely for housing needs, while the lack of available housing continues to support prices.
Ranilović does not believe Croatia faces a market collapse like the one after the 2008 crisis, saying conditions are different today, though some price corrections are likely — especially as owners who must sell for personal reasons enter the market. He noted that fewer than one-third of advertised properties are ultimately sold, suggesting many homes are listed at unrealistic prices.




