Business

Foreigners Are Buying More and More Real Estate in Croatia

Foreigners Are Buying More and More Real Estate in Croatia
Rovinj, Istria | Photo: Mario Romulić

April 27, 2022 - Last year, foreign citizens bought 9,514 properties of real estate in Croatia, which is a high increase of 50 percent compared to 2020.

According to research done by Jutarnji List with information from the Croatian Tax Administration, the highest year-on-year growth in the purchase of real estate in Croatia among foreigners was achieved by citizens of Germany, Austria, and Slovenia, reports tportal.hr.

Last year, German citizens bought 2,637 properties in Croatia, which is an increase of 1,089 sales or even 70 percent compared to 2020, Austrians made 1,109 purchases (472 more properties or an increase of 74 percent compared to 2020), while Slovenians last year became the owners of 2309 properties in our country, achieving an increase in purchases compared to the previous year by 32 percent or 550 more properties.

"The data do not show the total purchase and sale of real estate in 2020 and 2021, but only the sale of real estate for which the Tax Administration conducted the procedure of determining the tax base. In addition, data on real estate sales are still being updated ", they note in the Tax Administration and suggest that, in the end, the growth in the number of real estate sales made by foreigners with sellers in Croatia could be even higher.

In any case, the registered growth of foreigners' demand for domestic real estate confirms the recent allegations of entrepreneurs and real estate market experts who told Jutarnji list that the increased interest of foreigners in domestic real estate is one of the reasons for unprecedented growth in new apartment prices in the last quarter of last year.

Namely, according to the Central Bureau of Statistics, the purchase prices of new dwellings in the last quarter of last year were 15 percent higher than the prices realized in the last quarter of 2020: such growth has not been recorded in the last decade. In addition, the average prices of all residential real estate purchases in 2021 were 7.3 percent higher than in 2020.

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