The Residential Real Estate Transactions market in Croatia has been experiencing significant growth in recent years.
Customer preferences: Customers in Croatia have shown a strong preference for purchasing residential properties, particularly in urban areas. This is driven by a combination of factors, including the desire for homeownership and the potential for investment returns. Additionally, many buyers are attracted to the charm and beauty of Croatia's coastal cities, leading to a higher demand for properties in these areas.
Trends in the market: One of the key trends in the Croatian residential real estate market is the increasing number of international buyers. Croatia's membership in the European Union has made it an attractive destination for foreign investors, particularly from neighboring countries. These investors are drawn to Croatia's affordable property prices and the potential for capital appreciation. As a result, there has been a surge in demand for residential properties, especially in popular tourist destinations such as Dubrovnik and Split. Another trend in the market is the growing popularity of new construction projects. Developers are capitalizing on the increased demand for residential properties by building new housing developments, particularly in urban areas. These projects often offer modern amenities and attractive design features, appealing to both local and international buyers. The availability of new construction options has further fueled the growth of the residential real estate market in Croatia.
Local special circumstances: Croatia's unique geographical location and natural beauty have also contributed to the growth of the residential real estate market. The country's stunning coastline, with its crystal-clear waters and picturesque islands, has made it a desirable destination for both tourists and property buyers. This has led to a high demand for coastal properties, driving up prices in these areas. Additionally, Croatia's relatively low cost of living compared to other European countries has made it an attractive destination for retirees and expatriates. Many individuals are choosing to relocate to Croatia, either permanently or for part of the year, leading to an increased demand for residential properties.
Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the residential real estate market in Croatia. The country's stable political environment and improving economic conditions have increased consumer confidence and purchasing power. Additionally, low interest rates and favorable mortgage conditions have made it easier for individuals to finance their property purchases. Furthermore, Croatia's tourism industry has experienced significant growth in recent years, attracting a large number of visitors from around the world. This has created a strong demand for short-term rental properties, particularly in popular tourist destinations. Many property buyers are taking advantage of this trend by purchasing residential properties for investment purposes, further driving the growth of the market. In conclusion, the residential real estate market in Croatia is experiencing significant growth due to customer preferences for homeownership and investment, increasing international buyers, the popularity of new construction projects, the country's unique geographical location and natural beauty, as well as favorable macroeconomic factors such as stable political environment, improving economy, low interest rates, and a thriving tourism industry.
Data coverage:
Figures are based on total and average revenue of residential real estate transactions (sales).Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
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