Croatia strengthens housing policy amid rising prices
📊 According to the report, the increase in housing prices is driven by a combination of factors:
— strong domestic demand;
— growing interest from foreign buyers;
— rising construction and financing costs;
— pressure from short-term rentals, especially in tourist regions.
🌍 The impact of short-term rentals is particularly visible in coastal cities. Croatia remains one of Europe’s key tourist destinations, and a significant share of housing stock is used for short-term rental, reducing supply for long-term residents and pushing prices higher.
📜 In response, the government has already outlined a strategic approach. The National Housing Policy Plan until 2030 includes:
— increasing the supply of affordable housing;
— developing the rental sector;
— more efficient use of existing housing stock;
— strengthening the role of the state in market regulation.
💼 In addition, a property tax reform is being implemented. Its goal is to reduce speculative demand and encourage more efficient use of housing, including properties that remain vacant or underutilized.
📈 The combination of strong demand and increasing regulation is shaping a new phase of the market:
— prices remain under pressure due to limited supply;
— the government is taking a more active role in market structure;
— investment strategies are gradually shifting from short-term gains to more sustainable approaches.
📍 For investors and buyers, this means that Croatia remains an attractive market, but with a growing regulatory component. This is particularly relevant for coastal regions, where competition for property is the highest.
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Posted at:
03/04/2026, 11:30