Trends in Croatian property prices in tourist areas.
The most sought-after Croatian destinations for property purchase by foreign clients, according to Google.com search data, are Rogoznica, the island of Murter, and apartments in Šibenik. High demand often correlates with high prices, so in September, there was a further increase in property prices in Croatia.Data from our price map showed that in areas exposed to tourism, demand from foreign investors led to a new price hike, making houses, apartments, and lands 2% more expensive than the previous month.
The rise in property prices in Croatia isn't surprising news as prices were on a long-term upward trend, and the growth rate had been noted before the COVID pandemic. The real estate market on the coast is also very appealing, both for large investors interested in big construction projects and for foreigners purchasing properties to live in or to rent out.
High demand also leads to high prices, so many locals are forced to seek alternatives when it comes to housing matters, and thus often buy properties in other locations or remote places away from tourist cities where prices are significantly lower.
Choosing between an apartment and a house
In choosing between an apartment and a house, many buyers are undecided. However, according to our data, the choice often falls on purchasing a house.On the island of Murter, according to our data, the price per square meter for an apartment averaged 3,557 euros, while the price for a house per square meter in Murter, including garden pricing, was 2,604 euros. In Šibenik, square meters are on average about 100 euros cheaper than on the island of Murter. The average advertised price for apartments per square meter in Šibenik was 3,426 euros and the price of houses was 2,552 euros per square meter.
Huge difference in building land prices
Tourism is continuously growing, leading to a higher demand for building land. Despite the relatively high prices, investors and construction companies are still in search of the ideal building land as close to the sea as possible. In the centers of historic cities, the prices are extremely high due to the limited supply of available land.Data from the Croreal.com real estate listing site showed that the average advertised price for land on the island of Murter was 146 euros per square meter, while lands in Šibenik are much more affordable with an average asking price of just 98 euros per square meter.
It's essential to realize that the prices advertised here are set by sellers, so it's understandable that they are often higher than the actual market prices. Because of the desire to earn more, sellers tend to list properties at higher prices than the true market prices. The analysis of listings shows that the demand for properties is extremely high, so sellers aim to profit while they have the opportunity.
