In a recent report released by the Croatian Bureau of Statistics (DZS), it has been revealed that residential property prices in Croatia experienced a significant surge in 2023, marking an average increase of 11.9 percent compared to the previous year.

The data, published on Thursday, indicates that within this period, prices of newly constructed residential properties saw a rise of approximately nine percent on average, while prices of existing residential properties escalated by 12.4 percent.

This upward trend in property prices comes amidst challenges faced by young people in Croatia, who are increasingly finding it difficult to acquire property.

Breaking down the figures regionally, the report highlights that compared to 2022, property prices soared by 11.7 percent in the capital city of Zagreb, by 11.3 percent in the Adriatic region, and by a striking 16.3 percent in other areas across the country.

Delving deeper into the quarterly data, it reveals that in the final quarter of 2023, residential property prices in Croatia experienced a quarterly increase of 3.4 percent compared to the preceding quarter. Moreover, on an annual basis, prices surged by 9.5 percent when compared to the same period in 2022.

The analysis also showcases that new residential properties witnessed an average price hike of 4.8 percent compared to the third quarter of 2023 and a 3.7 percent increase compared to the fourth quarter of 2022. Conversely, existing residential properties saw price upticks of 4.7 percent quarterly and 10.4 percent annually.

Further dissecting the regional trends, it is revealed that in the fourth quarter of 2023, property prices in Zagreb, the Adriatic region, and other areas rose by 1.1 percent, 6.3 percent, and 2.8 percent respectively, compared to the previous quarter.

On an annual basis, property prices in Zagreb increased by an average of 6.5 percent, with the Adriatic region witnessing a growth of 11.3 percent. Meanwhile, in other regions, residential property prices in the final quarter of 2023 surged by an average of 14.4 percent compared to the same quarter in 2022, according to DZS data.

The substantial increase in residential property prices indicates a robust real estate market in Croatia, albeit posing challenges for potential buyers, particularly the younger demographic, as property ownership becomes increasingly elusive.