Thinking about buying a slice of the Mediterranean dream? Croatia, with its idyllic coastlines, historic towns, and growing tourism industry, is becoming a top choice for lifestyle-savvy investors. But the golden question remains: where in Croatia is the best region to invest? Whether you're eyeing long-term capital appreciation, rental yields, or simply a personal retreat with good ROI potential, here's your guide to Croatia's most promising property hotspots.

Zagreb – Urban Heart with Rising Value

For those preferring city life or looking for steady, long-term returns, Zagreb remains a smart choice. According to the Croatian Bureau of Statistics, the average price for new dwellings in Zagreb reached €2,652 m² in the second half of 2024—showing a 12.4% increase compared to the same period in 2023. This kind of consistent growth makes Zagreb a safe bet for investors seeking long-term gains.

With a growing tech sector, international universities, and the highest domestic demand for rentals, Zagreb’s real estate market is more resilient and less seasonal than coastal areas. Long-term rental yields typically range from 4–6%, with demand strongest in districts like Maksimir, Trnje, and Donji Grad.

Bonus? Zagreb is also benefiting from Croatia's digital nomad visa, attracting a new wave of remote workers seeking furnished, well-located apartments.

Dalmatian Coast – Split Leads the Charge

If beachside bliss and high-yield summer rentals are your goals, Dalmatia continues to dominate. The region has seen a surge in interest, especially around Split. According to June 2025 data, Split’s average residential property prices jumped by 14.25% compared to the previous year, reaching €5,140 m². Central Split alone saw prices rise by 11.1%, hitting €4,642 m². This makes it one of the fastest-growing urban coastal markets in the country.

Why the growth? Simply put: tourism. Croatia welcomed over 20.6 million visitors in 2023, with Dalmatia accounting for more than 45% of all tourist overnights. That translates to excellent potential for short-term rental income, with many properties achieving gross yields of 6–8% during peak season.

Hotspot tip: Islands like Hvar, Vis, and Brač are experiencing increased interest in eco-luxury and heritage restorations, driving up both demand and future value.

Istria – Elegance with Stability

Known for its wine, olive oil, and truffle-laced cuisine, Istria attracts a different kind of investor—those who value cultural depth and long-term stability. The region combines charming hilltop towns with coastal gems like Rovinj and Poreč. In 2024, average asking prices in Istria were €3,687/m², a nearly 9% increase from the previous year. Tourism is thriving here too, with 30 million overnight stays recorded in 2023—more than any other Croatian region.

Istria’s infrastructure and proximity to Western Europe (especially Italy and Slovenia) make it perfect for second homes and retirement havens. The local property market is less volatile, which appeals to cautious investors seeking quality over quick returns.

Off-the-Radar: Inland Croatia & Islands

If you're hunting for undiscovered value, consider islands like Šolta or Vis or inland gems like Slavonia. Inland property prices remain significantly lower—some areas are under €1,500/m²—offering potential for future appreciation as more investors look beyond the coast. However, infrastructure and rental demand may be more limited, so it's best for those with a long-term vision.

‍

It’s a Good Time to Dive In

Croatia’s property market has matured in recent years, driven by EU membership, improved digital nomad policies, and consistent tourism growth. The national average price for flats hit €3,543/m² in 2024—a 12.7% jump from the previous year. Whether you’re into the energy of Zagreb, the sun-drenched glam of Split, or Istria’s refined charm, there’s a Croatian region waiting for your investment.

Just remember: great views come with great responsibility—so work with local experts and always check zoning laws and rental regulations. Happy investing!

‍