Year 2025 Brings Significant Changes to Croatia's Real Estate Market The year 2025 brings significant changes to Croatia's real estate market. As of January 1, 2025, the new Law on management and maintenance of real estate, along with a number of other important legislative changes, will come into effect and affect the real estate market in Croatia. Let's take a closer look at what we can expect. Key Legislative Changes The new year brings changes to several key laws: - The Law on social housing (POS) - The Law on spatial planning - The Law on construction - The Law on renting apartments The most significant announcement is the tax reform, which introduces new regulations related to the purchase of the first real estate, which could be of particular interest to young buyers entering the real estate market. Joining the OECD and New Opportunities Croatia is in the final phase of accession to the Organisation for Economic Co-operation and Development (OECD). According to statements by the organization's Secretary-General, Mathias Cormann, the technical part of the accession should be completed by the end of 2025, while membership is expected in 2026. Upon joining the OECD, important changes to the Property Law will be introduced, which will equalize the rights of foreign buyers from OECD countries with domestic buyers. It's worth noting that this liberalization does not apply to agricultural land. Impact on the Real Estate Market According to experts, these changes could significantly impact the Croatian real estate market in several ways: Increased Foreign Interest It is expected that there will be an increased interest from buyers from developed countries, especially from the USA, Canada, and Australia. These buyers traditionally show the greatest interest in: - Luxury real estates in coastal areas - Exclusive locations in tourist destinations - High-quality real estates in urban downtown areas Regional Impact The biggest changes are expected in Croatia's coastal areas, especially: - Istria - Dalmatia - Kvarner Bay - Major urban centers such as Zagreb What Can We Expect? Experts predict that the market will remain active, albeit at a slower pace. The key challenges remain: - Lack of quality real estate supply - High domestic demand - Need for better infrastructure, especially in certain regions Conclusion The year 2025 brings significant changes to the Croatian real estate market. While an increased foreign interest, especially in the luxury real estate segment, is expected, experts do not foresee dramatic changes in the standard residential market segment. The National Housing Policy Plan and other state measures should help maintain a balance between foreign investment and domestic housing needs. These changes represent an important step in the development of the Croatian real estate market, but also highlight the need for a careful balance between attracting foreign investment and ensuring accessibility of housing for local residents. Made by: Martina Mataić Škugor, director of credit mediation at Opereta'

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