Hrvatski
The Time Comes to Leave the Family Home
There comes a time when the house where you grew up, took your first steps, experienced your first love, and built countless memories simply becomes too small. A few years ago, a bank commercial captured this perfectly: the main character, now a grown man with a beard, squeezes back into his parents' bed—until it collapses. The advert was meant to be humorous, but it reflected a very real situation.
Statistics show that in Croatia, leaving the family home at the age of 32 is quite common. What would the Swedes think, where young people typically become independent at around 18 and a half? Rather than comparing different housing models, let's focus on the Croatian market—particularly Zagreb, where finding and purchasing a decent apartment for around €100,000 has become nearly impossible. We spoke with both buyers and industry experts to understand why.
Looking for an Apartment in Zagreb
"It frustrates me when people claim that young Croatians live with their parents because they're lazy, when in reality an entire generation has become a victim of the country's lack of housing policy," says Ana, who has been searching for an apartment in Zagreb.
After more than a year of searching, she still hasn't found a home. Her expectations are far from unrealistic: a two-bedroom apartment in a newer building, not on the ground floor or in the attic, with an elevator and a balcony. She has focused on neighborhoods such as Donji Grad, Maksimir, Svetice, and Ravnice, yet without success.
"The supply of apartments is poor, and because there is virtually no effective housing policy, the market is left almost entirely to market forces, driving prices to exceptionally high levels," Ana concludes.
The Impact of the Pandemic and Earthquake on Zagreb's Housing Market
Homes continue to be bought and sold regardless of market conditions. However, both the Zagreb earthquake and the COVID-19 pandemic have reduced the number of property transactions.
Demand for newly built apartments remains exceptionally strong. Yet purchasing even one square meter of a new apartment in Zagreb now requires approximately two average monthly salaries.
According to Jasna Biliškov Barun, real estate agent at Biliskov Real Estate, buyers increasingly prefer newer developments.
"The Zagreb earthquake has had a far greater impact on the real estate market than the pandemic. Until recently, the city center was the most desirable location, but the earthquake completely changed buyers' preferences. Older Austro-Hungarian buildings in the city center have become significantly less attractive, while demand for newer buildings, land, and family homes has increased."
Are Property Prices Rising or Falling?
Statistics continue to show rising prices for newly built apartments in Zagreb, which is hardly surprising. High-quality properties in desirable locations sell very quickly.
More surprising is the fact that prices for older apartments have not adjusted significantly. In some areas, older apartments are selling at prices similar to those of new developments.
According to Jasna Biliškov Barun, Managing Director of Biliskov Real Estate:
"Property prices have remained stable. The primary reason is the limited supply of complete, high-quality properties—with proper documentation, functional floor plans, and efficient use of space."
Is the Price Difference Between Old and New Apartments Too Small?
"The price difference between older and newer buildings should be at least €500 per square meter, if not more. Generally speaking, I wouldn't say the difference is too small. If it is, then the older property simply won't sell at the asking price."
Which Apartments Are Most in Demand?
There is one clear exception in the market.
Apartments of approximately 50 square meters, priced around €100,000, have consistently been the most sought-after properties.
"Smaller apartments up to 50 square meters in older buildings often achieve relatively high prices compared to new developments because demand is extremely strong. Supply is limited, and even in new developments these units are scarce and usually need to be purchased early in the construction phase, which many buyers are hesitant to do."
Families with children most commonly seek compact three-bedroom apartments of up to 70 square meters, while single buyers typically look for one-bedroom apartments of up to 50 square meters. Overall, the strongest demand remains for properties priced below €150,000.
What Can We Expect from the Real Estate Market?
If Croatia's government housing subsidy program (APN) continues, the market is expected to remain active and relatively stable. Strong demand inevitably puts upward pressure on prices, making homeownership increasingly difficult for buyers who do not qualify for government subsidies.
For many people, the choice comes down to two options: purchasing one of the few available properties—often requiring a substantial mortgage—or renting, where monthly housing costs frequently exceed 40% of household income. Rental prices have softened somewhat, however, as many apartments previously used for short-term tourist accommodation are now offered for long-term rental.
Owning a home remains deeply rooted in Croatian culture. Nearly 90% of Croatians live in owner-occupied homes, one of the highest homeownership rates in Europe. It is unlikely that this will change significantly anytime soon.
As for future property prices, that remains the million-dollar question.
"As long as the effects of the pandemic continue, we've learned that market conditions can change almost overnight," says Jasna Biliškov Barun. "Predicting how prices will move or whether major changes will occur in the coming year is extremely difficult."