According to the publication "Overview of the Real Estate Market in the Republic of Croatia in 2023," prepared by the Institute of Economics, Zagreb (EIZ) for the Ministry of Physical Planning, Construction, and State Assets, the value of sold real estate amounting to 9.1 billion euros represents 12 percent of last year's gross domestic product (GDP). The most significant share in the value of contracted sales is held by apartments, accounting for 39.2 percent. This is followed by construction land with a share of 21.9 percent and family houses with 18.4 percent.

In contrast to 2022, when most sales were related to apartments and holiday homes, last year, the largest portion of sales was for agricultural land, with 32,240 transactions, making up 27.6 percent of the total number of real estate transactions in the Croatian market.

Next in line are apartments and holiday homes with 25,932 transactions, or 22.2 percent of the total number, followed by construction land with 23,728 transactions, and family houses, of which 14,285 were bought or sold last year.

High Demand in Solin, Viškovo, and Dugo Selo As expected, the City of Zagreb leads in terms of the number of transactions last year, with 14,901, followed by urban centers along the coast—Zadar with 2,326 transactions, Split with 2,313, and Rijeka with 1,478 transactions. In the continental part of the country, Osijek stands out with 2,027 transactions and Karlovac with 1,232 transactions.

Most transactions relate to the sale of apartments or holiday homes, which are more common in urban centers, i.e., larger cities.

Interestingly, EIZ notes that in addition to larger cities, this group also includes their neighboring areas, such as the municipality of Viškovo near Rijeka, the city of Solin near Split, and the city of Dugo Selo near Zagreb.

"Due to the sharp rise in property prices, the demand for residential properties in local units that have the advantage of proximity to a larger city and more favorable property prices has increased," they explain.

Property Prices and Influence of Tourism Tourism significantly influences real estate prices in coastal local government units. The highest median apartment price per square meter is recorded in the municipality of Bale in Istria, at 4,264 euros, followed by the municipality of Punat on the island of Krk, at 3,427 euros, then Omišalj at 3,149 euros, Rovinj at 3,120 euros, and Malinska-Dubašnica at 3,017 euros.

Next in line are Opatija, Dubrovnik, Split, Župa Dubrovačka, Lovran, Baška, Umag, Dobrinj, Hvar, and Krk, which have median apartment prices above 2,500 euros per square meter.

Most Expensive Apartments in Kostrena The City of Zagreb, with a median apartment price of 2,299 euros per square meter, is in a group of 41 local units where the median price of an apartment ranges between 2,001 and 2,500 euros per square meter.

The highest median prices of sold apartments were recorded in Kostrena, 2,443 euros, Preko, 2,414 euros, Primošten, 2,412 euros, and Podstrana, 2,401 euros, while the lowest were in the municipality of Vrsi, 2,007 euros, and the town of Mali Lošinj, 2,010 euros. In 85 local units, the median prices of sold apartments ranged between 1,001 and 2,000 euros per square meter, with the majority, 54 of them, located in coastal areas and on islands.

Median apartment prices ranging from 500 to 1,000 euros per square meter were recorded in 28 local government units, most of which, 21, are in continental counties. Median apartment prices below 500 euros per square meter were recorded in only five units—Darda and Đurđenovac in Osijek-Baranja County, Plitvička Jezera and Perušić in Lika-Senj County, and the city of Vukovar in Vukovar-Srijem County.

Family houses are significantly more expensive in Adriatic local government units compared to continental ones, with Cres standing out with the highest median price of 2,172 euros per square meter.

On the other hand, median prices of family houses up to 200 euros per square meter were recorded in the largest number of local government units, 165 of them, most of which are located in continental and rural parts of the country.

Prices of Agricultural Land The highest median prices of construction land are recorded in Split, at 286 euros per square meter, and Fažana, at 247 euros. The other extreme, with a median construction land price of one euro per square meter or less, includes the units of Čeminac, Draž, Donji Miholjac, and Ernestinovo in Osijek-Baranja County, Bednja, Donji Martijanec, and Maruševec in Varaždin County, Čazma in Bjelovar-Bilogora County, Selnica in Međimurje County, and Glina in Sisak-Moslavina County.

In Adriatic local government units, agricultural land was also the most expensive last year, with the highest median price, 38 euros per square meter, recorded in Fažana. Behind this Istrian municipality, with a median agricultural land price of 29 euros per square meter, is Baška Voda, followed by Solin and Seget, with 28 euros per square meter.

A total of 221 units recorded median prices of sold agricultural land ranging from one to five euros per square meter, while in 174 units, median prices of sold land were less than one euro per square meter.

Finally, the lowest median price of 0.1 euros per square meter was recorded in six continental units: Đulovac, Davor, Stara Gradiška, Okučani, Preseka, and Nova Kapela.

Highest Median Prices for Commercial Spaces in Coastal Areas and Around Zagreb In Dubrovnik, a record median price for commercial space of 3,067 euros per square meter was achieved in 2023, while median prices of 2,003 and 1,957 euros per square meter were recorded in Split and Zadar, respectively.

Least Affordable Apartments on the Adriatic Coast The analysis also found that the least affordable apartments or holiday homes, as expected, are in the coastal part of the country. Thus, the "affordability index" value greater than 30, indicating that more than 30 percent of annual income is required for one square meter of an apartment or holiday home, is recorded in 15 coastal units—Baška Voda, Rovinj, Hvar, Gradac, Baška, Murter-Kornati, Malinska-Dubašnica, Krk, Novalja, Dubrovnik, Vrbnik, Bol, Funtana, Okrug, and Vrsar.

On the other hand, the most affordable apartments are in Vukovar, where the "affordability index" was 2, followed by Strahoninec, Đurđevac, Brdovec, Vrbovsko, Čabar, Pakrac, Beli Manastir, Bistra, Knin, Đurđenovac, and Darda.

Furthermore, among the first 82 least affordable local units, there is no settlement that is not coastal, while with an index value of 17.1, the City of Zagreb ranks 86th, where residents could purchase 5.9 square meters of an apartment for the average annual income.

When it comes to renting, the highest median monthly rent for an apartment in euros per square meter last year was recorded in the City of Zagreb, at 10.1 euros, Split, at 10 euros, and Dubrovnik, at 9.7 euros, while the lowest was in Vinkovci, at 4.5 euros, according to the publication.