March the 3rd, 2023 - As real estate prices rise considerably here in the city and even on the outskirts, every second Zagreb property has been purchased in cash, while every third has been bought by a foreign national.

As Poslovni Dnevnik writes, the price of Zagreb property is continuing to skyrocket. Despite this, apartments across the city are selling very well, moreover, they're often bought in cash. With Croatia's accession to the Eurozone back in January this year, the City of Zagreb, like the whole of Croatia, became more interesting for foreign buyers who want to invest their money in real estate.

Every other Zagreb property was paid for in cash, and every third buyer has been a foreign citizen. Their interest in Croatian real estate is the among the first reasons for the high prices we've seen of late, with inflation also affecting the situation.

Second come Croats living outside of Croatia who aren't considered foreigners but domestic customers, third come the people who sold them that property and then again handle the cash and again that cash flows into Zagreb. Fourth are those people who have various sources of income, about which it's better not to ask much,'' said Sanjin Rastovac, a real estate agent for HRT.

Apartment prices across Zagreb have by risen by more than 15 percent in the last year. Residents of Germany, Austria and Slovenia buy the most Zagreb property of all, and these increased prices are also acceptable for them.

"Within Zagreb itself, finding a new build for three thousand euros has become a difficult task. The demand is still huge, but the supply is weak,'' emphasised Rastovac. This is why there are more and more young people who, even with APN subsidies, cannot buy their first property. This new situation forced them to turn more and more to the outskirts of the city, where prices are now also rising steadily.

"Smaller towns dotted around Zagreb, for example Dugo Selo, Sesvete, Velika Gorica, and Zapresic, have now become very interesting for young families who can still manage to afford property in these areas," said Jelena Kravoscanec Todorovic, a real estate agent.

In the City of Zagreb, they have a plan for so-called affordable housing where rent will be proportional to income, and quality apartments will be built and rented throughout the city. The first such apartment building will be built next year.

"It's a new building, the fifth multi-apartment building in Podbrezje with 288 apartments that costs 320 million kuna, and we're negotiating with development banks," explained Luka Korlaet, Zagreb's deputy mayor. This is exactly the model supported by the European Investment Bank at a recent meeting with the mayor, confirming that such a model is widely accepted across the rest of the European Union, where people across many member states are obviously struggling with the same problems.

For more, check out our news section.

December the 10th, 2022 - So you've decided to take the plunge and explore living in Croatia. Just as a snail needs a shell, you'll need a house. Here's how to find a Croatian apartment or house, with a few tips and tricks thrown in.

If you’ve already applied (and hopefully been granted) residence in Croatia, then you’ve already got a place to live, as you need to have a Croatian address to apply, and you can skip this article.

Looking for somewhere to live anywhere can be a task and a half, let alone in a foreign land where you more than likely don’t speak the language, or nowhere near enough of it to navigate this alone. There are multiple ways in which you can do this in Croatia, both formally and informally. If you’re here because you’re being employed, this may not be an issue if you’re being provided with accommodation, or if your employer is helping you out with your quest. There are many Facebook groups which offer apartments and even houses for rent and sale without the need for a middle man or intermediary to get involved in the process. There is also Njuškalo, a platform where you can sell just about anything.

Unlike many other European countries, an unfurnished apartment is an exception, not a rule in many places in Croatia, particularly in the City of Zagreb. That said, the glossy wide-angle photos that have caught your eye on social media or a website might not be quite up to date, so always go and see the apartment in person before committing to anything. This is a general rule anywhere in the world, of course.

Check if your potential living quarters has all the appliances that you’ll need (such as a washing machine, stove, fridge. If it hasn’t, make sure to ask if the landlord is willing to purchase them. You can also hire a real estate agency to help you out with your search, but in that case, you will probably end up paying a lot more money. If you’re a foreigner, and you probably are if you’re reading this, then hiring a lawyer could be a useful extra investment if the cash is there. They’ll be able to fully explain all the details of the contract to you and make sure you understand everything, especially if the contract isn’t in English and if the owner doesn’t speak English.

Sites for finding apartments, such as the aforementioned Njuškalo, let you search via maps for apartments, so, based on what you’re looking for, you can filter and narrow down your search and find a location that suits you best more quickly.

Location, location, location…

Just like almost everywhere else on the face of Earth, the closer you are to the very centre of a town or city, the higher the prices typically are, but I must say that when it comes to Zagreb in particular, the price difference might not be quite as vast as you expect. This is because the buildings are typically older, while apartments located a bit further out are usually newer, so the combination of a convenient location with lower apartment quality, and not so convenient location with a top quality apartment equals more or less the same amount of money.

Money talks, and the season is short

You should also be very aware of the fact that Croatia is a nation of seasonality. You’ve probably heard of seasonal affective disorder, well, Croatia sort of has it, in its own way. The effect that the tourist season has on the rental market can be quite jarring. Short-term summer holiday rentals are what keeps many local families afloat, especially on the coast, and it isn’t uncommon for long-term rental properties to exclude the tourism-dominated summer months from their offers entirely. There are even horrendous cases of people being told they have to leave and go elsewhere for the summer, because tourists pay more and like everywhere else, especially in a country where tourism is the strongest economic branch - money talks. Having said that, the possibility of year-round income, even if it is lower, and not to mention stability, is also attractive to some landlords, as the tourist season remains short despite efforts to lengthen it. With such question marks hanging over your head, engaging a lawyer to make sure your contract and your agreement is watertight and you aren’t going to get any unpleasant surprises as soon as the temperature heats up is a worthwhile move, if for nothing else than peace of mind.

Facebook groups

The site that just used to be about posting on people’s walls and poking each other until one of you gave up (or grew up) has evolved into something enormous over the years. Facebook groups can be extremely helpful when it comes to finding apartments in Croatia. Groups that offer apartments will have names such as the following:

Stanovi za najam (Apartments/flats for rent)

Iznajmljivanje stanova (the same as the above)

Najam stanova [enter location] bez agencije (Apartments for rent without the engagement of an agency)

Newspapers and portals

Popular newspapers such as Večernji list, Jutarnji list and 24sata (to name a few) have advertisements in them.

Njuškalo.hr

I’ve mentioned this platform previously, but it’s worth a paragraph or two of its own. This platform is the most popular buying and selling platform in the country. A little bit like Craigslist or even ebay (at a stretch, but you get the idea), this is the country’s largest online advertisement website by far. Acting as a marketplace, it has more than 1.4 million customers who are in the market for, well, just about anything!

You’ll need to select the category on Njuškalo called Nekretnine (property), and browse using the filters to find something that suits you, from the area to the square footage.

Other useful websites

Aside from the wildly popular Njuškalo, there are several other sites which can help you to find your new living space in Croatia which also have English language options, they are:

Crozilla.com

GoHome

Najam.hr

Real Estate Croatia

Burza

Nekretnine 365

Oglasnik.hr

Podstanar.hr

Index oglasi

Oglas.hr

Things to note

Word of mouth, just like with everything else in Croatia, is extremely helpful when it comes to finding an apartment.

Make sure you get a written contract and you go through it with a fine tooth comb, or have a trusted friend or better yet, a lawyer (or a trusted friend who also just happens to be a lawyer) sit down and go through it with you.

If something doesn’t feel right or you’re unsure, ask, ask, and ask again.

For more on moving to and living in Croatia, keep up with our dedicated lifestyle section.

October 25, 2022 - For the first time, the state will offer real estate hunters in Croatia an oral public auction for some of the valuable properties from its portfolio. A public auction will be held at the Ministry of Spatial Planning, Construction and State Property on November 21. The villa which will be auctioned is in a very attractive location in the elite Tuškanec area of Zagreb, and it is known as the Stejskal Summer House.

As Poslovni writes, the villa was built in 1888 by the industrialist Ferdinand Stejskal, the founder of the brick factory in Bedekovčina, which is still operating today. Potential buyers can view the villa at Nazorova 72 before the auction. It consists of a house with an area of ​​182 square metres, with split-level apartments in the basement, ground floor and first floor. They will be, however, sold together as a whole. The villa also boasts a little more than a thousand square metres of garden.

In addition to being neglected, the building also has limitations due to the fact that the conservator's approval must be obtained for renovation, as the villa is part of the Historic Urban Complex of the City of Zagreb and is subject to the provisions of legal protection and preservation of cultural assets.

Due to the attractive location of the property, there is a lot of potential. The number of contestants who will enter the race to buy will become more apparent after the deadline for submission of applications to participate in the auction, which is on November 11 at 11:59 p.m.

In the Ministry headed by Ivan Paladina, only those candidates who pay a guarantee in the amount of HRK 748 thousand, i.e., 10 per cent of the initial price of HRK 7.48 million, will be invited to tender.
The auction step will amount to HRK 20,000, and the highest offered amount in three rounds, i.e., the highest last offered price, will be selected.

For more, make sure to check out our dedicated Lifestyle section.

ZAGREB, May 10, 2020 - The Croatian National Bank's (HNB) house price index showed a 9% increase in 2019 compared to 2018, the highest growth rate since 2007, but analysts expect a significant decrease in sales, and a stabilisation of prices.

Last year's 9% increase was fuelled by higher prices of new (+8.3%) and existing buildings (+9.1%).

Regionally, the most pronounced price increase was registered in the City of Zagreb (+13.2%), while lower growth rates were registered on the Adriatic coast (+6.9%) and elsewhere (+3.8%).

Despite the significant increase in house prices in 2019, on the national level they were still lower on average compared to 2008, down by 2.4%.

Analysts from Raiffeisen Bank (RBA) expect a stabilisation of house prices and a decrease in sales.

As they noted, the first three months of 2020 brought a further increase in prices, but due to an expected severe economic contraction and a consequent increase in unemployment, a further increase in prices and demand for residential properties will be stopped by the present uncertainty and risk aversion.

"We expect a significant decrease in sales on the house market during the second and third quarters, considering the fact that, apart from the decreased demand, a portion of market participants will defer the buying and selling of real estate at current prices," RBA said.

RBA also noted that, with the acceleration of the growth rates in 2019, house prices in Croatia were growing more than twice as fast as the EU average (4.2%) on an annual level.

As for countries in Croatia's immediate surroundings, only Italy registered a further decline of house prices for the third consecutive year (-0.1%), while other countries are still observing increases.

The Czech Republic registered an increase of 9.2%, Hungary of 14.8%, Slovenia of 6.9%, and Slovakia of 9.1%.

As for the final quarter of 2019, the house price index registered an increase of 2.9% compared to the third quarter of 2019, and a 10% increase compared to the last quarter of 2018.

The yearly price increase in the last quarter of 2019 was driven by higher prices of new and existing buildings throughout Croatia, and an acceleration of the annual growth rates was registered in all categories.

Year on year, the most significant price increase was registered in the City of Zagreb (14.7%), while the Adriatic coast (6%) and other parts of Croatia (7.5%) registered somewhat more modest growth rates, RBA said in its analysis of the HNB data.

More real estate news can be found in the Business section.

ZAGREB, April 26, 2020 - Uncertainties caused by the coronavirus crisis and the March 22 earthquake have affected the office rental market in Zagreb and the present situation is very bad, the president of the Croatian Chamber of Commerce real estate agents' association, Dubravko Ranilović, told Hina earlier this week.

Ranilović said that numerous downtown buildings that had been rented out as offices, were now damaged and owners and lease holders were now looking for alternatives until the buildings, damaged in the quake, are repaired, which can take time. On the other hand, office building owners are not inclined to rent out their property for a period shorter than two years.

"Demand for office rentals, notably those top class (Class A), is high," Ranilović said.

Office buildings are generally classified into one of three categories: Class A, Class B, or Class C. Standards for Class A offices are the highest. These buildings represent the newest and highest quality buildings on the market. They are generally buildings with the best curb appeal, the best construction, and high-quality building infrastructure. Class A buildings are also well located.

Rents for Class A offices range between €13 and €16 per square metre while those at less attractive locations go for between €10 and €11 per square metre.

Ranilović also said he doubted rents would go down, at least not any time soon, but that the situation would depend on the duration of the pandemic and that in the long run, all options were possible.

Demand for warehouse rentals with an area of between 2,000 and 5,000 square metres is also high.

More business news can be found in the dedicated section.

ZAGREB, April 14, 2020 - House prices in Croatia in 2019 were on average nine percent higher than in 2018, data from the National Bureau of Statistics (DZS) shows.

Prices of new-builds rose by 8.3% on average, while prices of existing residential properties increased by 9.1%.

House prices went up by 13.2% in Zagreb, 6.9% on the Adriatic coast and 3.8% elsewhere in the country.

In the fourth quarter of 2019, prices of residential properties rose by 2.9% compared with the previous quarter and jumped by 10% compared with the last quarter of 2018.

Prices of new-builds fell by 0.5% compared with the third quarter of 2019 and increased by 6.9% compared with the third quarter of 2018, while prices of existing properties went up by 3.4% quarter on quarter and by 10.4% year on year.

In Q4 2019, compared with Q3, house prices rose by 2.9% in Zagreb, by 1.9% on the Adriatic coast and by 5.4% elsewhere in the country. Compared with Q4 2018, prices increased by 14.7% in Zagreb, by 6% on the Adriatic coast and by 7.5% elsewhere.

More real estate news can be found in the Business section.

ZAGREB, April 5, 2020 - Uncertainties caused by the corona crisis have affected the rental market in Zagreb as well, where a drop in prices was registered even before the 22 March quake, it was noted in an analysis published by a real estate advertiser Crozilla.com.

"The uncertainty caused by the coronavirus situation left a mark on the rental market in Zagreb even before the major earthquake, which exacerbated this difficult situation. The flat rental market, both monthly and daily, is already suffering from the consequences of the emerging developments," Crozilla stated.

According to the Crozilla advertiser's data, rents for flats in Zagreb were slightly lower compared to February even before the earthquake. Advertised rents for flats with areas from 20 to 100 square metres were down by 1% on average, however, despite the declining trend, rents were still higher compared to March 2019 and 2018.

The most considerable change is evident when it comes to smaller flats, rents for which had increased the most before this crisis.

The sharpest decrease in prices was registered for flats up to 40 square metres, for which rents are down 2.1% on average compared to February. A slightly smaller fall was registered in rents for flats from 40 to 60 square metres, which are down 1.3% compared to February.

Rents for flats from 60 to 100 square metres decreased by 0.7% on average compared to the previous month.

Apart from slightly lower prices, due to the coronavirus situation, a decrease in demand was also registered at the rental market in Zagreb.

Crozilla.com quoted Andrea Bilić, the director of the Metropola real estate agency, who emphasised that the coronavirus had paralysed the real estate market, and currently put on hold all activities connected to rental demand.

"Many foreign embassies are cancelling already arranged showings, and some clients give up on renting or moving after they look at the property and even after they had already decided to rent a particular property due to the current circumstances. One of the biggest problems is quarantine for all foreign citizens who have employment contracts with foreign companies and who were due to start working in Zagreb soon," Bilić said.

Bilić estimates that further developments in prices for renting flats will depend on the duration of the crisis.

"If it ends in a month, which is unlikely according to experts, only a minor and not very significant drop in prices will happen. However, if it stretches over a period of several months, it will bring more uncertainty, and it will generate a global crisis, and in that case, there could be a repeat of the 2008 crisis, which is still very fresh in our memories," Bilić thinks.

Along with the monthly rent market, changes were registered in the daily rent market as well. However, in that case, not even price reduction could help, said to Crozilla Bruno Babić, the head of the "Apartments in the centre of Zagreb" association, which numbers 15 apartments located in the very centre of Zagreb.

"Prices are not dropping in a competition for guests. You can stay for free, but every guest must first go to isolation for 14 days, and the vacation becomes too expensive, no matter how cheap the accommodation," stated Babić, adding that they currently have no guests, as their business is based on exclusively on tourists.

More economic news can be found in the Business section.

ZAGREB, April 1, 2020 - The coronavirus and recent strong earthquakes in Zagreb have led to a fall in rental prices in the capital of up to twenty percent while sales have slowed down drastically, the Večernji List daily reported on Wednesday.

There are some prospective buyers however their contact is mostly over the phone and of an informative nature, one realtor told the daily.

Before the outbreak of the epidemic, real estate prices in Zagreb and along the Adriatic coast were increasing by about 10% a year however that trend will temporarily be suspended. No one can be certain how much prices will fall, the daily said.

"We expect real estate prices to fall but it is difficult to estimate just how much. As soon as uncertainty grows, buyers and banks are more cautious," said Chief Economic Consultant at the Croatian National Bank Vedran Šošić.

There is a risk that salaries will fall, banks will see which activities are requesting loans and whether their employer has been affected and to what extent. People, said Šošić, are focused on more fluid assets.

The centre of Zagreb and environs have been affected by the 22 March strong quakes. According to the city's authorities 7,000 buildings were damaged in the earthquake and about 30,000 family homes.

More Zagreb news can be found in the Lifestyle section.

ZAGREB, January 4, 2020 - The real estate market, at least judging by asking prices, is returning to the pre-crisis levels, with increases in both the volume of trading and number of transactions, Večernji List daily says in Saturday's issue.

The Zagreb Institute of Economics and the Construction Ministry have published the second edition of the real estate market review for 2018 which shows there were 104,000 real estate sales and that the value of the properties sold totalled 32 billion kuna, which is 8.4% of Croatia's GDP, the daily says.

The sale of farmland dominated with nearly 40,000 transactions but the value of the land sold dropped from 2017 to 1.6 billion kuna. About 13 billion kuna was generated in flat sales, followed by 6 billion kuna in construction land sales and 5.7 billion kuna in family house sales.

In 2018, the number of flats which changed owners increased by 1,500 to 24,000 and that of houses sold by 4,000 to over 11,000.

An analysis of sales contracts does not reflect a dramatic increase in property prices, which might be concluded from asking prices. In Zagreb, the median price of flats sold in 2018 went up 4.9% on the year to 9,459 kuna per square metre.

As for other parts of the country, the highest price jump was recorded in Split-Dalmatia County (+8%) with the median price of 11,669 kuna per square metre, followed by Istria County (+6.7%) with the median price of 8,722 kuna.

As for family houses, the highest median prices in 2018 were recorded in Dubrovnik, 12,000 kuna per square metre. The price of a square metre of a house in 29 coastal and island towns and municipalities ranged from 5,000 to 10,000 kuna whereas in 190 towns and municipalities in continental Croatia the price was below 1,000 kuna, Večernji List says.

More real estate news can be found in the Business section.

ZAGREB, December 17, 2019 - Flat purchase usually requires more financial effort than the purchase of a house of the same area, including the yard, and in November the difference in their advertised prices was an average 21.5%, show data published by the Crozilla.com real estate website on Tuesday. The increase in flat prices has resulted in an increase in demand for houses in many towns, which in turn has resulted in an increase in house prices, with the highest annual growth in the value of houses of 9.5% having been recorded in Split, and the highest increase in flat prices having been recorded in Umag, of 8.8%, Crozilla representatives said.

As regards the difference in flat and house prices, it is particularly high in the northern Adriatic resort of Opatija, where the asking price of a flat was €3,147 per square metre while the asking price of a house was €910 lower.

The value of houses in Opatija grew by only 0.9% on the year while flat prices grew by 6.8%.

Crozilla data show that flats in Zagreb, whose average asking price was €2,063 per square metre, grew by 8.3% while house prices grew by 6.2%. The difference in their prices in November was €724 or 35%.

A major difference of 43.3% in price was reported in Bjelovar, where flats were advertised at a price of €756 per square metre while houses were advertised at €327 cheaper.

The difference between flat and house prices in Osijek stood at 37.2%, with flats advertised at an average price of €967 per square metre, while houses were advertised at €429.

In the most expensive city, the southern Adriatic resort of Dubrovnik, the asking price of a flat was an average €3,650 per square metre while the asking price of a house was only €23 lower.

Along with Dubrovnik and Opatija, among the more expensive towns was Split, with the asking price of a flat being €2,915 per square metre and the asking price of a house being €2,646.

Flats were cheaper than houses only in Poreč, where the price difference was only €16, and the average asking price of a flat was €2,003.

More news about real estate in Croatia can be found in the Business section.