April 4, 2022 - In 2021, there were 466.2 thousand tourists in houses, apartments, and holiday homes or non-commercial accommodation in Croatia, 2.3 percent more than in 2020, while the number of overnight stays was 9.3 percent or 10.1 million less, according to the Central Bureau of Statistics (CBS).

Owners of non-commercial accommodation in Croatia pay a tourist tax as a lump sum and are obliged to register themselves and all persons who spend the night in the house or apartment (family members, relatives, friends) in the eVisitor tourist check-in and check-out system of the Croatian National Tourist Board (CNTB), from which the CBS takes data on non-commercial tourist traffic and continues to process them statistically.

Locals came less and spent the night in houses and holiday apartments

According to these data, out of the total turnover in non-commercial accommodation in 2021, almost 76 percent of arrivals and 56.4 percent of overnight stays refer to foreigners, who came to this type of accommodation 5 percent more than in 2020 (353.1 thousand) but realized 3 percent fewer overnight stays (5.7 million), reports Index.hr.

Croatian citizens also realized fewer overnight stays in non-commercial accommodation than in 2020, by 16 percent (4.4 million), and according to reports in eVisitor, 5 percent fewer came to that accommodation (113.1 thousand).

Last year, 37,000 Slovenians came to this type of accommodation, totaling 2.6 million overnight stays. According to that, they were by far the most numerous and the most overnight stays in houses and holiday apartments in Croatia among all tourists from other nations who were in that type of accommodation.

They were followed by Germans and tourists from Bosnia and Herzegovina with 640 thousand and 634 thousand overnight stays, and among the first ten countries, whose tourists realized one hundred thousand and more overnight stays in that accommodation: the markets of Serbia, Austria, Czech Republic, Hungary, Poland, Italy, and Slovakia.

Zadar County and Kvarner with the most non-commercial overnight stays

In the research on this traffic, CBS did not provide comparisons of traffic from these and other markets in non-commercial accommodation in Croatia from 2020, which is not stated for individual counties, but only data on arrivals and overnight stays for 2021. Zadar County, with 36 percent of all overnight stays in that type of accommodation, ranks in the first place.

The second is Primorje-Gorski Kotar with 26 percent of total overnight stays, while the third is Istria with 15 percent of total overnight stays in non-commercial accommodation.

They are followed by Šibenik-Knin County, where 8.2 percent of overnight stays in non-commercial accommodation were realized in holiday homes and apartments in 2021. Split-Dalmatia County follows with almost 7 percent of overnight stays, and Dubrovnik-Neretva County with 4.4 percent, while Lika-Senjska County with the lowest share of 4 percent in total overnight stays.

However, not all other counties in Croatia have that much, because the share of overnight stays in non-commercial accommodation was only 0.2 percent.

What the CBS does not yet state in this research is the number of houses, apartments, and holiday apartments (accommodation units, etc.) in which this non-commercial tourist traffic was recorded in 2021, and they note that the quality of research results is significantly affected by the discipline of check-in and check-out the stay of persons in non-commercial accommodation facilities and the work of inspection bodies that monitor this phenomenon.

For more on travel in Croatia, follow TCN's dedicated page. 

The Croatia takeover of the six-month rotating presidency of the European Union has not impacted the real estate rental market in Zagreb the way many had expected, at least in terms of renting out high-priced attractive apartments in the center of the city and nearby areas.

Very High Zagreb Expectations Have Fizzled

As reported by ZagrebInfo on December 2, 2019; several Zagreb landlords had evicted their long-term tenants to cash in on higher Western EU monthly rental prices, leaving their stunned evicted tenants to scramble for alternative housing. Unfortunately, that much-hyped cash cow has failed to produce any real milk.

Realtors and Zagreb Landlords Surprised by Lack of Interest

 “Expectations were very high, and many Zagreb residents have been calling us off the hook. They’ve eagerly left their information and addresses, and emphasized that they would move out of their apartments in top city locations immediately if they could rent them out for a half year, but there hasn’t been any interest. Seduced by the thought of a possible apartment shortage in Zagreb during the EU presidency, some owners even preemptively raised their rental prices,” observed Lana Mihaljinec Knežević, owner of Zagreb West Agency.

Boro Vujović, Director of the Opereta agency confirmed similar observations.

“The owners long-term apartment rental properties had big expectations, but nothing significant has happened. We have only rented two apartments for this purpose (EU government officials),” Vujović revealed to Korana Sutlić/Novac/Jutarnji List on January 12, 2020.

Zagreb West Agency

Croatia EU Administration Run Locally: Guests Not Long-Term

Lana Mihaljinec Knežević explained that the administration associated with the rotating presidency is run from Croatia with domestic resources. The guests who arrive from other EU states are not permanent guests, but occasionally show up to attend various meetings, summits and similar events.

Several apartments were reserved in the center of the city for these occasions, but nothing significant has happened for quite a while. These rentals (for EU government officials) can be counted on just one hand.

“For the time being, we just haven’t seen any interest in this area. We certainly expected interest, but nothing has happened. And we do not see an increase in the number of reservations compared with last year,” said Igor Kordić, co-founder of Irundo, a leading short-term rental company in Croatia. They handle several apartment rental properties in the center of Zagreb.

Hilton Double Tree Gets Fifth Star for EU Arrivals

Five Star Hotels in Big Demand: One Hotel Gets Fifth Star

Shortly before the beginning of the EU presidency, several ministries sought five-star hotels in Zagreb for short-term guest accommodations. For this reason, some hotels recently underwent upgrades, like the Hilton Double Tree Hotel, which became a five-star hotel.

HUP Zagreb indicated that highest category hotels, including The Westin Zagreb and Sheraton Zagreb, have generated the most interest during Croatia’s EU presidency. They are both reporting a high occupancy rate during the this 6-month period, as are their other high category hotels: Panorama Zagreb and International.

“Our hotels have a highly capable team of professionals who have hosted numerous international conferences and summits for many years, and our hotels, restaurants and conference halls are prepared for these upcoming events. Regarding our presentation of Croatia’s gastronomic options, we will be preparing special menus for the EU delegates to showcase our diverse selection of cuisine,” says Sara Valentić of the Marketing Department from the Croatian Consulate General in Zagreb.

Four Star Downtown Hotels Seeing Very Little Traffic

However, not all high-category hotels in Zagreb are in the same situation.

“We have not yet encountered any interested guests associated with the EU Council Presidency. It’s possible that one of them could occasionally stay with us for a short time, but we are not seeing that right now,” said Tomislav Kuliš , Director of the Palace Hotel, a four-star hotel located on Zrinjevac Park, right in the heart of the Croatian metropolis.

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As Novac/Korlana Sutlic writes on the 26th of February, 2019, Središće, a popular neighbourhood in Novi Zagreb often referred to as Bundek, in reference to the well-frequented Zagreb lake and park, has recently gained the status of the most desirable neighbourhood in Novi Zagreb. By reaching this level of popularity, when looking at the demand for flats, it is now ranked alongside Vrbani III, Trešnjevka and Trnje.

The very first jump in demand for quality apartments in Središće came after Bundek park was done up and after RIT Croatia (Rochester Institute of Technology Croatia) was opened in the area, and then the demand grew a bit more after the completion of the American International School in Zagreb (AISZ) just several months ago.

The popularity of the neighbourhood has also contributed to the birth of the recent construction of some new residential buildings, which are part of the Središće area. The biggest demand is for smaller quality three-bedroom and smaller four-room apartments, ranging between 60 and 90 square metres in size, the price of which is not greater than 200,000 euros. The market prices are high, some even reaching up to 3,000 euros for a well-equipped apartment.

The Središće area of Novi Zagreb boasts a great many amenities and ease of access to them. Along with the American Educational Institution and Bundek park, it is located near the Avenue Mall, the neighbourhood is also home to the Museum of Contemporary Art near the Hippodrome, and even has a hypermarket. One of Croatia's best private kindergartens is located at Bundek Centre, and it's also worth mentioning that Središće's close proximity to the very heart of Zagreb is something else that earns the area brownie points.

''All this contributes to its value,'' says Boro Vujović, the director of the Operta property agency.

Even the very name Središće speaks volumes to Croatian speakers, for non-Croatian speakers, the name indicates that it is centrally positioned in Novi Zagreb, while only Mladosti bridge (Most mladosti) and the river separate it from the wider city centre, according to Sergio Serdarušić, the director of Eurovila agency.

''The growth of demand for Bundek began a few years ago when the Zagrebačka banka built Bundek Centre. The recent arrival of the aforementioned American school has of course further influenced the popularity of the neighbourhood itself. Središće is fortunate in that it is positioned next to Bundek lake, which is one of the major reasons for its popularity. Just like on the other side lie Western neighborhoods such as Vrbani III made a big leap forward [in terms of popularity], something similar is happening here. Novi Zagreb itself is beautifully planned out building-wise, but there's no room for new buildings, while over here afew new construction sites have been opened in this area, which is also a plus for the market,'' added Serdarušić.

In addition, the area of Središće is exceptionally well connected with roads and by public transport to Zagreb's city centre, Franjo Tudjman Airport and the A1 motorway. Quite recently, the construction of a public elementary school began, which will also be a plus for the area.

''Each new piece of content additionally enhances an area. There's already a lot of interesting content [in Središće], including those things which are needed for everyday life, such as shops, banks, services, restaurants, cafes...'' noted Serdarušić.

The price of new builds over the past few years has increased from 1.600 to 2.400 euros per square metre. The price depends on the microlocation, the quality of the building, the location of the apartment within the building itself, its degree of decoration, the floor and of course its overall layout. However, as they say from the previously mentioned Eurovilla agency, some of the smaller apartments can also come with rather impressive price tags up to 3,000 euros per square metre.

However, as Središće doesn't actually have enough luxury and large apartments for diplomats who would like to live near the American school, many remained in Šalata, where this institution was previously located. The demand is bigger than the offer, and Središće is currently the most expensive quarter in Novi Zagreb when it comes to prices per square metre, but they're now at their very peak.

"We had a case a few years ago in Bundek Centre, after the apartments were sold at 1.600 euros per square metre, just a couple of months later, one apartment in that same building was sold for almost double the price per square metre because the buyer was urgently seeking property close to the American high school.

But these are the exceptions, although that building is now managing to keep hold of a high price. In Bundek's new buildings, square metres were being sold for around 2,300 euros. Now apartments in some older buildings in the area have jumped in price, and sellers are looking for 2,000 euros per square metre for the best ones, some of them even offer well-equipped apartments in newer buildings for 3,000 euros per square metre,'' said Boro Vujović, adding that he believed that this trend would eventually level itself out come summertime when people start moving into the large new Meander building, which is now sold out. He believes that this will lower the deficit.

Those particularly interested in this part of Novi Zagreb on the other side of the Sava river, he adds, are US Embassy staff, and now there are American education institutions conveniently located there, too.

The apartments in Središće are also being claimed by employees of companies located in Novi Zagreb. In the long run, there is a chance, however slight, that the fall of its popularity could occur if the quarter becomes too built up, because there are currently several unbuilt areas, in which many construction companies are interested.

''Središće already has a traffic problem upon entering the area when coming from the city centre via the bridge. That needs to be better resolved. I don't think the additional construction will have a negative impact on its popularity, but it's better to have air in the neighbourhood. The recently constructed buildings have a wide access road and, in general terms, in this area, Novi Zagreb is very well designed and should not be over-built,'' concluded Eurovilla's Serdarušić.

Make sure to stay up to date with more on Croatian property by following our dedicated lifestyle page. If it's just Zagreb you're interested in, give Total Zagreb a follow.

Click here for the original article by Korana Sutlic for Novac/Jutarnji

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