Property prices in Croatia are growing at an unprecedented rate. During the last 3 months, the country has set a record for this indicator compared to all other EU members.

Croatia has been leading in the growth of real estate prices (within the EU) not only for the past three months. In annual terms, the country is also ahead of all but Iceland. Here are some examples.

In the EU countries over the past three months, prices fell by an average of 1.5%. The largest decline was observed in Denmark (-6.5%), Germany (-5%), Cyprus (-4%), Sweden (-3.4%) and Finland (-3.4%). In Croatia, on the other hand, during this period, prices rose by 4.7%.

The annual dynamics were as follows: at the end of 2022 in Croatia, the increase in the price of apartments and houses was 7.3% and was the second highest in the EU after Iceland. Most of all, housing has risen in Zagreb—by 22.5%.

The main reason for this activity in the Croatian real estate market is the country's recent entry into the Schengen area. What will show up in the year 2023 is still unclear: the number of transactions has already decreased, but prices can support the lack of supply. Although the number of houses under construction is constantly increasing, it is still not enough to meet the demand. In 2022, 11,165 building permits were issued, a 5.8% increase over the previous year.