Croatian Property Market Faces 13% Sales Decline in 2025 Due to Buyer Shifts

Croatian Property Sales Decline 13% in 2025

The Croatian real estate market has experienced a significant downturn, with property sales dropping by 13% in the first nine months of 2025 compared to the previous year. This decline translates to 85,600 transactions, highlighting a cooling trend in the market. The most pronounced decrease occurred in Split-Dalmatia County, where sales fell by 30%. This shift is largely attributed to rising interest rates within the eurozone and substantial price growth in Croatia, which have influenced buyer behavior and market dynamics. The demand for flats and holiday apartments remains resilient, but house sales have plummeted by an alarming 22%.

Split-Dalmatia County Sees 30% Sales Reduction

Split-Dalmatia County has been particularly affected, recording a 30% decrease in property sales. This dramatic drop signifies a shift in buyer preferences and market conditions within the region. According to Croatia Economy News, Dubrovnik-Neretva County also faced a 27.4% reduction, further indicating that coastal regions are experiencing a pullback. This trend aligns with a broader decentralization of demand towards northern and inland counties, where some regions, such as Varaždin County, have seen notable increases in transactions.

Foreign Buyer Participation Drops by 22%

Foreign buyers, who have historically fueled the Croatian property market, have reduced their activity by 22%, particularly impacting coastal property sales. As noted in The Dubrovnik Times, this reduction is largely due to shifting global economic conditions and increased interest rates, making Croatian real estate less attractive to international investors. The reduced foreign investment ultimately affects the liquidity and pricing dynamics of the market.

Foreign buyer participation drops 22%, impacting coastal property sales.

Strong Price Growth Despite Sales Decline

Despite the decrease in transactions, the Croatian property market continues to see robust price growth, with national increases around 10% and coastal regions like Split and Dubrovnik witnessing hikes of 10-13% as per Investropa. This paradoxical situation suggests that supply shortages are more influential than a decrease in demand, emphasizing that while fewer properties are being sold, those on the market command higher prices.

Decentralization of Market Demand

As demand shifts away from traditional hotspots, northern and inland counties are experiencing a rise in interest. Regions such as Varaždin, Koprivnica-Križevci, and Lika-Senj have recorded transaction increases of 38%, 18.2%, and 13.6%, respectively, according to SSBCrack News. This decentralization points to changing preferences among buyers, possibly due to affordability and lifestyle factors as the cost of living rises in more popular areas.

Zagreb Market Shows Resilience Amid Decline

While Zagreb remains the most active market, it has not been immune to the broader trend, experiencing a 19.7% decrease in sales. However, the capital's resilience is notable, with 11,682 properties sold in the first nine months of 2025. The reliance on mortgage financing, which overtook cash purchases with 56% of buyers opting for it, as described by Croatia Week, reflects a shift in buyer financing strategies and the city's continued appeal to both domestic and international buyers.

Looking Ahead: Implications for Investors

Moving forward, investors should be aware of the shifting dynamics within the Croatian property market. The decentralization of demand could present opportunities in less traditional areas, which may offer better value and growth potential as buyers seek alternatives to high-priced coastal regions. Monitoring interest rate trends and their impact on buyer affordability will be crucial. As the market remains dynamic, investors should consider diverse strategies, including focusing on regions with growing transaction volumes and competitive pricing. According to RealEstateAbroad.com analysis, the Croatian market's resilience and continued price growth indicate potential for long-term investment returns.