Property Prices Rising in Croatia

Property prices are rising in Croatia according to the latest data released up to October this year.

Average property prices nationally in Croatia are up by 2 per cent over the last year, indicating that the property market in Croatia has finally turned the corner, although prices still remain 1.75 per cent down from those seen in 2011.

The coastal city of Dubrovnik, long a favourite with overseas property investors, certainly seems to be faring the best. Property prices in the city have risen by 9 per cent since 2011 and is the most expensive place to buy property in Croatia, with average house prices now at 4,382 euros per square metre.

Apartments in the popular city are more affordable, working out at an average of 3,097 euros per square metre.

Other popular cities such as Split and Zadar are also more expensive than the Croatian capital of Zagreb.

Apartments have remained popular in Zagreb, with prices up 9 per cent over the past year to an average of 1,762 euros per square metre. However, house values have fallen by 19 per cent over the last 6 years, from 1,560 euros per square metre in 2011 to just 1,270 euros now.

This has seen the city of Rijeka overtake the capital in property values, despite seeing a 10 per cent fall itself since 2011 from 1,484 to 1,328 euros per square metre.

Other cities where bargains can be found by overseas property investors include Varazdin, where the average square metre price for an apartment is 1,139 euros, and houses are even cheaper at 789 euros per square metre.

Likewise, Slavonski Brod, has apartments at around 804 euros, with houses 636 euros per square metre.

Property prices in the east of Croatia have not been faring well. The counties of Brod-Posavina and Osijek-Baranja have dropped by 6 per cent and 5 per cent respectively.

As in most countries, overseas property investors considering Croatia need to check performance of local housing markets, as there can be a great disparity from area to area.