In the last two years, buyers in Croatia were increasingly looking for construction land. Interest exists for agricultural land as well. The total demand for parcels of both types increased by as much as 70% compared to the year before.
Buyers are searching for properties in the coastal regions during summer and early autumn. The beginning of 2021 also showed a spike in interest for the same type of properties compared to the first months of the previous two years.
More specifically, at the end of the summer and in the fall, buyers were predominately looking for construction land in Zadar County and Istria, where the offer is the highest. The beginning of the year is “reserved” for the mainland, and in the first three months, search spikes for construction land in Zagreb and Zagreb County.
Dubrovnik-Neretva County offers the least amount of construction land for sale.
When we compare these new trends in demand with supply, it is clearly visible that the market “does not meet” all the customer demands.
The construction land supply is much greater than the demand in Primorje-Gorski Kotar County and in Istria, while it is in deficit in relation to the demand in Zagreb, Zagreb County, and on the coast in Split-Dalmatia County.
Buyers are looking for construction land primarily for solving the housing issue, not for building cottages or vacation homes. The demand, mostly grouped around Zagreb, Split, and Zadar – all larger city centers – shows us this trend.
While the largest supply of construction land for sale centers around Zagreb, and Zagreb county, where it continues to grow, it stagnates in other counties and is in decline in Lika.
When it comes to asking prices, they, just like the interest of buyers, have recorded growth in the last two years. In general, in the last two years, the prices of construction land in Croatia have grown by 6%, and the change is also visible in the “squares” themselves, i.e. in all counties, more and more construction land is now being offered for sale.
Thus, the highest price per square meter of construction land is in Dubrovnik-Neretva County (200 €/m2), Split-Dalmatia County (184 €/m2), and the City of Zagreb (164 €/m2).
On the other hand, the most affordable square meters for construction land are in Požega-Slavonia (€18/m2), Sisak-Moslavina (€21/m2), and Krapina-Zagorje County (€22/m2).
Do buyers want to go into agriculture?
Agricultural land on the coast is the most sought-after property in Istria in the summer months, and the last two years have also seen a spike in searches in the first quarter. The reason may be the announced changes in the law, according to which from 2023, foreign citizens will also be able to buy land in Croatia, so buyers assume that this could affect price growth.
Agricultural land on the mainland is the most sought-after in Zagreb County. On the other hand, Istria County offers the most agricultural properties for sale, followed by Primorje-Gorski Kotar and Zadar County.
Although there is generally less interest in agricultural land on the mainland than on the coast, due to the successive growth in demand, these types of properties are becoming deficit. Lands in the interior, available for sale, are on average larger than those on the coast.