Real estate transactions across Croatia declined last year in most counties, while in nine of them, mostly in the north and east of the country, there was a higher number of sales than in 2022, according to the new portal of the Ministry of Finance, allowing for a comparison of the tax systems of European Union countries. The highest interest in real estate in the whole of Croatia was recorded in Varaždin.

In Varaždin and the Varaždin County, over 5,300 sales contracts were concluded in 2023, which is twice as many as the previous year, according to the Tax Administration data.

Real estate agent Dražen Mesec shed light on these trends in an interview with HRT.

In contrast to the broader national trend where the price per square metre is gradually decreasing, Varaždin continues to maintain relatively high real estate values. Quality older apartments command a price of €2,000 per square metre, while newly constructed properties are swiftly selling at around €3,500 per square metre.

The Varaždin real estate market has undergone substantial changes since 2010 when a two-bedroom apartment a popular neighbourhood could be acquired for €40,000 during the financial crisis. Today, such offers are scarce, and properties rarely dip below the €100,000 mark.

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As real estate prices soar, particularly for houses, families, and investors are diversifying their portfolios to include family homes and land. However, this shift in the market is accompanied by challenges, as young families, with the average Croatian salary, find it increasingly difficult to afford newly constructed homes, prompting many to resort to multi-year loans.

Despite the surge in real estate prices, industry estimates suggest that prices in Varaždin have peaked and are expected to stabilize. Real estate agent Dražen Mesec emphasized that the market slowdown observed last year is likely to continue, with a stable pricing environment and a slightly reduced number of buyers compared to the previous year.

While there remains a robust demand for apartments, houses, and building plots, the market for castles in the Varaždin County is notably struggling to attract potential buyers, indicating a nuanced real estate landscape in the region.