May the 10th, 2022 - Prices for hotels and Croatian apartments have shot up all along the Adriatic coast in a post-pandemic boom of sorts following two very troubled years. 

As Poslovni Dnevnik writes, every year along the Croatian coast there are more and more expensive hotels, private apartments, restaurants and less and less places available for the average Croatian pocket. The global coronavirus pandemic hasn't worked to change that either, meaning that this year's prices for Croatian apartments, hotels and other items will surprise many, reports Vecernji list.

The past two summer tourist seasons have grown minimally due to reduced demand, and this summer staying in some hotels during the very height of the summer season will be more expensive than usual, in some cases - by up to 50 percent.

''Yes, this year we're witnessing a significant increase in the prices of accommodation and catering and hospitality facilities. Analyses have shown that accommodation in Adriatic hotels and campsites has risen by an average of 20 to 25 percent compared to last year, and due to significantly increased demand and a good pace of reservations for the main summer season, prices will rise to 50 percent in exceptional cases,'' said consultant Sanja Cizmar, the director of 505 conferences.

Rising inflation and the growth of almost all input costs, from food to energy and labour costs, haven't really left hosts with much room for maneuver. Risks are generally higher in facilities with more complex services, especially when food is included, so corrections have generally been more abrupt in hotels than they have been Croatian apartments and other such private facilities.

"The hotel and tourism sector in Croatia isn't alone when it comes to the raising of prices. Similar trends are present across most Mediterranean countries, so I don't believe that price positioning here in Croatia will stand out significantly from other destinations in the Mediterranean. Ultimately, due to the general wave of rising prices for all types of goods and services, consumers expect higher prices now. However, it will be an art to follow market trends and actively adjust our prices accordingly in order to maintain competitiveness,'' pointed out Cizmar.

It remains to be seen whether this increase in prices will end up putting Croatian residents off from visiting their own coastline. Nedo Pinezic, a consultant specialising in family accommodation, weighed in on the topic:

"Increases in prices have been the highest in those facilities that haven't touched their prices at all in the past two years. We're lucky that we do have a range for every pocket, from premium and standard to low budget offers,'' stated Pinezic, who added that prices are growing further as the main part of the summer tourist season approaches.

Prices are currently thirty percent lower than they will be from July onwards, and in the peak two or three summer weeks, we'll probably witness additional price increases. For example, nights spent in three-star Croatian apartments will now cost 110 to 130 euros, and in the very height of the season, probably well above that. Along parts of the coast with a higher concentration of lower quality facilities, one can, of course, get by a bit more favourably.

Although there is practically no Riviera without at least one de luxe hotel, the rule is that it is easier to find a zone of cheaper prices that goes down the coast to the south. For example, on the Crikvenica Riviera, some islands, as well as in smaller places in the Makarska area, where guests from Bosnia and Herzegovina with generally lower purchasing power tend to gravitate en masse. There are many affordable Croatian apartments dotted throughout Istria.

"Reservations are coming in again after the stalemate due to the Ukraine-Russia war, but the south of the country is still the weakest. For Brac, Korcula, the Makarska Riviera etc there's currently a discount of approximately 30 percent for certain periods throughout the tourist season. For stays in May there are special prices along the coast. Most guests coming from other parts of Croatia are the ones who typically want to see if there are any discounts. But it's all relative,'' stated Dalibor Canaglic, the product manager of Palma Travel.

All in all, wherever you go in Croatia, you will almost always need at least a few hundred kuna more for accommodation than you would have needed last year.

For more, check out our travel section.

March the 12th, 2022 - The number of people purchasing Croatian apartments, particularly newly built ones, in cash, has increased of late. The trend of rising prices on the domestic property market hasn't been significantly hit by the pandemic or two earthquakes, either.

As Poslovni Dnevnik/Suzana Varosanec writes, as many as one third of buyers in 2021, or most of them, were interested in Croatian apartments of 50 and 60 square metres, while only 5 percent of them were searching for apartments of 100 m2.

The most sought-after apartments in Zagreb are 60 m2, there is great interest in those of 40 and 50 m2, and they account for a total of 45 percent of potential buyers, as was revealed by a new customer preferences annual real estate market analysis by Njuskalo.

The biggest differences

Despite the trials and tribulations of the last two years, the Croatian real estate market has continued with the trend of rising prices, they say, and asking prices have risen by 4.05 percent for Croatian apartments and by as much as 7.73 percent for houses. The average asking price per m2 of an apartment in Zagreb now stands at 2,297 euros, or 1,441 euros per square metre in a house, and the earthquakes of 2020 have failed to really affect these prices in the long run.

The director of the Operetta real estate agency, Borislav Vujovic, believes that ongoing inflation will make property rise for some time to come, and this effect is already visible through the growth in the number of buyers who are ready to finance their investments in cold hard cash.

He pointed out that as a result of both the 2020 earthquakes and the global coronavirus pandemic, the demand for houses and land in the vicinity of the City of Zagreb is still higher than it is in the city centre, where the sales of old apartments have slowed down, and new construction is an absolute hit.

According to the DSZ in 2021, the average price per square metre of a new apartment sold in Zagreb stood at 14,672 kuna, which is 4.7 percent more than it was back in 2020, and 13,713 kuna at the state level, which is 7.8 percent more than it was back in 2020.

Interest in smaller communities in the vicinity of the City of Zagreb and neighbouring also counties continues to grow, and in addition to Zagreb, Krapina-Zagorje and Virovitica-Podravina counties also recorded the largest difference between supply and demand last year, in which demand for houses exceeded their supply.

The same trends are present in Karlovac County and the City of Zagreb, with Karlovac County recording a 21 percent increase in the price per m2 of a house in the past two years, but even today it is very affordable and costs an average of 657 euros.

The most sought-after houses are of 100 and 150 m2, and there are fewer of them on offer than the level of interest of buyers, and the least sought-after are between 300 and 400 m2. In the City of Zagreb and in the wider Zagreb County, houses spanning 100 m2 are in high demand - accounting for 12 percent of total demand.

There are more houses available on the market than in demand in the country's coastal counties (except in Dubrovnik-Neretva and part of the interior), but this trend isn't being reflected in asking prices, so Dubrovnik-Neretva, Split-Dalmatia and Istria are still the most expensive counties when it comes to houses.

In the City of Dubrovnik, the average asking price is as much as 4151 euros, in Split 2033, and in Rovinj 2620 euros. Apart from the coast, foreigners are increasingly looking at making purchases in both Zagreb and Gorski kotar, but according to Vujovic, the trend of demand for Croatian apartments has altered into a ''second home'' type search in Croatia, so the most sought after holiday homes with swimming pools.

For more, check out our lifestyle section.