ZAGREB, 24 July (Hina) - In the first half of 2025, 57,095 property transactions were recorded on the Croatian real estate market, a 15% year-on-year decline, according to an analysis by real estate agency Opereta. The same percentage decrease was noted in apartment sales, while house sales fell by 26%.
A total of 11,322 apartment transactions were registered, marking a 15% drop compared to the first half of 2024. Sales of building land decreased by 17%, while transactions involving garages, parking spaces, and garage-parking units fell by 12%.
Although the City of Zagreb still accounted for the highest number of property sales in the first half of 2025 (7,876 transactions), this represented a 20% decrease compared to the same period last year.
“There is still a significant number of buyers who are ready and creditworthy, but they often struggle to find a suitable property,” the analysis noted.
A similar situation was reported in Šibenik-Knin County, which saw a 26% drop in transactions, largely due to limited supply, particularly in urban areas and along the coast, reducing market liquidity.
Split-Dalmatia County experienced the sharpest decline at 31%, followed by Primorje-Gorski Kotar County with 27%, and Istria County with 20%. Despite a larger housing supply in these areas, high property prices often exceed domestic buyers’ budgets, resulting in fewer completed sales despite continued demand.
Varaždin County posts 28% growth
Out of Croatia’s 21 counties, 16 recorded a decrease in transaction volume between 3% and 32%, while five counties saw growth. Leading the positive trend was Varaždin County, with a 28% increase compared to the first half of 2024.
“There is a continued shift in buyer interest toward locations outside major urban centres, where it’s possible to buy larger living spaces and create a better quality of life. Varaždin stands out as a university town with excellent transport links to major cities both within Croatia and abroad,” the analysis said.
In Varaždin County, 3,735 transactions were completed in the first six months of 2025, up from 2,912 during the same period last year.
The analysis concludes that the real estate market is showing signs of slowing, not due to a lack of interest, but because of buyer caution.
“Buyers are more careful in making decisions, but demand for quality properties remains strong, indicating the market isn’t stagnating, rather, it’s seeking a new balance between price, supply, and real needs,” Opereta observed.
Average price per square metre in Zagreb up 16%
Opereta also analysed actual sales prices for existing apartments in Zagreb. The average price per square metre in the first half of 2025 rose by €446, or 16%, compared to the same period in 2024, reaching an average of €3,166 per square metre.
The gap between asking and final sale prices is around 4%, while the average time to sell an apartment in Zagreb is 3.7 months.
Loans now more common than cash purchases
Unlike last year, when most property purchases were paid in full with cash, 2025 saw a shift toward loan financing, influenced by the Croatian National Bank’s stricter lending rules which came into effect on 1 July.
Opereta noted that banks' promotional terms encouraged buyers to act quickly, taking advantage of lower interest rates and more lenient credit assessment criteria. As a result, 56% of transactions were financed through loans, while 44% were paid in cash.
Investor-driven purchases continue to dominate the market, accounting for 22% of all transactions. This reflects the perception of real estate as a safe investment, especially amid inflation and uncertainty around other savings options. Favourable credit terms available prior to the HNB’s stricter lending measures also spurred demand for first-time home purchases.
Additionally, tax refunds for buyers under 45 purchasing their first home significantly increased activity among buyers aged 30 to 40. Their share rose by 9 percentage points, reaching 39%.
