Why Buy a Luxury Villa in Croatia? Because It’s an Excellent Investment!

Croatia as a Real Estate Investment Market

In recent years, Croatia has seen a remarkable rise in real estate prices, particularly in luxury villas along the Adriatic coast. According to data from the Croatian Bureau of Statistics, residential property prices increased by 13.1% in Q1 2025 compared to Q1 2024, and with new developments, domestic and international markets are recording annual price growth of up to 14.3%. Along the coast, the growth has been steady at around 11.3%, with new constructions being even more expensive.

For comparison, the average annual return of the S&P 500 index in recent years has been around 10%, but with significantly higher volatility. The Croatian real estate market shows more stable trends, without sharp declines, which makes it a safe haven for investors.

Croatia has also ranked among the leading EU countries for real estate price growth – with a rate of around 12.3% in Q3 2024, surpassing most EU states. This clearly demonstrates the high demand, especially in the luxury and coastal segments, further confirmed by the fact that Germans, Slovenians, Austrians, and Americans are among the most active buyers.

The growing tourism appeal – with 21.3 million visitors and 108.7 million overnight stays in 2024 – further increases the long-term demand for luxury real estate, as Croatia is becoming a year-round destination.

Top Locations for Luxury Real Estate

Istria consistently stands out as a top investment region, thanks to its charming wineries, gourmet tourism, truffles, and peaceful green inland areas. Istria also led the country in overnight stays in 2024: 30 million, followed by Split-Dalmatia (20.7 million), Kvarner (18.2 million), Zadar (15.4 million), and Dubrovnik region (9.1 million).

Real estate prices vary significantly per m² depending on the region, location, and proximity to the sea, but currently range from €3,200 to €5,500 for newer constructions.

Dubrovnik tops the list with the highest prices per m², where new builds in prime locations can exceed €10,000 per m².

Zagreb, while not coastal, is experiencing growing demand and recorded a 7.7% annual increase in property prices in 2024. It has excellent connectivity and a developed luxury real estate market, with foreign buyers purchasing properties for both investment rentals and occasional stays.

Reasons to Buy a Luxury Villa in Croatia

• Safe Investment – The luxury villa market has shown stable growth for over a decade. Croatia ranks among the EU countries with the highest annual real estate price growth (+12.3%).

• Return on Investment through Short-Term Rentals – With a tourist season generating over 108 million overnight stays in 2024, luxury villas achieve high occupancy rates, particularly in Dalmatia, Istria, and Kvarner. Foreign guests from Germany, Austria, Slovenia, and the UK dominate luxury villa stays.

• Return on Investment through Long-Term Rentals – Regulatory changes in Croatia are tightening rules for short-term rentals by requiring more permits for apartments. Although these changes do not apply to luxury villas, some owners are opting for long-term rentals, while demand for such rentals is steadily growing. Many foreign nationals with flexible jobs are choosing to live temporarily in Croatia, attracted by its safety, mild climate, and Mediterranean lifestyle.

• Holiday Home – A luxury villa in Croatia is a perfect choice for family holidays or retreats with friends, in a safe, well-organized country with excellent infrastructure and high health standards.

Where to Find Luxury Villas for Sale – LUVA Real Estate

LUVA Real Estate is a boutique agency specializing in the luxury segment – covering all regions of Croatia, from Istria and Kvarner, through Dalmatia to Dubrovnik and Zagreb.

Our team has years of experience with both domestic and international investors, ensuring a professional and transparent purchasing process.

We provide personalized support – from selecting properties tailored to your desired ROI model (short-term rental, long-term rental, or holiday homes), to complete legal and financial assistance.

LUVA has built trust with clients from Germany, Austria, Slovenia, the USA, and the UK, and today we are a leading partner for purchasing luxury villas in Croatia.

If you’re looking for access to exclusive listings, investment expertise, and secure transactions – LUVA Real Estate is your best choice. With us, you’ll find premium properties and expert advice that delivers real results.