Demand from overseas property investors helped to boost the Croatian real estate market in 2019, and the trend is expected to continue in 2020.
Just over 7,000 foreign nationals scooped up property in Croatia last year, in spite of the rising prices and relatively poor range Croatian real estate on offer, with a considerable percentage of these bought as properties to rent.
The holiday rental business in Croatia is certainly one of the most financially feasible, with foreign owners of Croatian real estate paying relatively low levels of taxes when compared to other European countries.
According to the latest figures 7,058 properties in Croatia were purchased by foreigners in 2019, with the most active buyers coming from neighbouring Slovenia, followed by Germans (1,342) and Austrians (662).
However, Croatian real estate is also starting to attract British overseas property investors, drawn by the stunning Adriatic coastline.
Most investors plumb for apartments in coastal cities such as the ever-popular Dubrovnik, as apartments have risen in much quicker than houses over recent years due to their rental demand.
However, even though the Adriatic coastline is still the most sought-after destination for foreigners the Croatian capital is the hit property market for 2019. Not only have house prices rose the most in Zagreb over the last year but also the interest from foreign buyers. And with events such as the Advent in Zagreb the capital is seeing a tourism boom which is helping to fuel the private accommodation business.
Whilst the price of apartments in Zagreb rose above 2,000 Euros for the first time ever last year, that still sees them at little over half the cost of similar properties in the most expensive city of Dubrovnik.
Whether overseas property investors are attracted by the capital or the coast, the Croatian real estate market is firmly on the up.