When it comes to climate change and its impact on the real estate market in Croatia, there is often talk of rising sea levels that would ultimately lead to a lower demand for residential and tourism-related properties "first and foremost near the sea"

Therefore, the question arises: was this actually the case over the past two decades? The truth may be hinted at by the fact that we have more and more examples of family homes and villas being built for rent on the coastal side by the sea every day. – Demand for properties near the sea has remained constant over the past 20 years, and it can even be said that it is increasing over time – said our interlocutor, Matej Samardžić from the Zagreb agency "Opereta", one of the largest in Croatia, and explained: – Climate changes and rising sea levels are often talked about as real risks. However, the majority of buyers and investors in Croatia still do not perceive them as a threat. These are long-term processes that still do not significantly affect people's lives, while the majority of people perceive properties near the sea as the best location for living or tourism. When we consider the limitations of such locations, as well as the demand that has always been greater than the supply for properties near the sea, it is not surprising that people want to be as close to the sea as possible, and even go about it illegally when we talk about occupying the coastal area. Illegal behavior has its consequences, and in recent times we have seen that such behavior is increasingly recognized and punished, and damages are being rectified.

HIGHER PRICES AND BIGGER 'OCCUPANCY' RATES

According to our interlocutor, as a result, we can expect that the demand and interest for properties near the sea will continue to rise, both this year and next year. – Properties in this category achieve higher prices, and when we look at tourism, they are easier to "occupy" and achieve higher overnight stays. The highest tourist traffic on our coast is in the summer, when it is almost impossible to notice any signs of rising sea levels, and we are accustomed to the heat. As long as people demand properties near the sea, they will be built – emphasizes Samardžić. And when we talk about forecasts related to the real estate market and climate change, it is worth mentioning the ones that say that by 2040, properties in Florida and California will lose up to 30% of their value due to increasingly frequent hurricanes and fires, which will make them less suitable for living. This is, of course, completely the opposite situation on the Adriatic coast. – Property prices in Croatia have increased by an average of 1.8% in the first quarter of this year compared to the fourth quarter of last year, and 8.9% compared to the first quarter of 2023 (at the annual level), according to data from the Croatian Bureau of Statistics – confirms Samardžić and adds: – The Croatian coast remains a very attractive location, considering that climate change does not currently threaten the security and quality of life. Heatwaves are easier to endure when you are close to the sea, and people value being close to the beach and having access to the sea. However, climate change is happening, and I believe that we will need to ensure adaptations over the next few decades. It is a good thing that many of the larger coastal towns have already conducted research and assessments related to climate change, and have developed protection strategies and are working in that direction. As for the larger negative consequences, they have not been recorded, except on rare locations such as Ninska Laguna and Vlašići on the island of Pag, which the local authorities are rectifying. It is also worth mentioning the flood in Zadar in 2017, which also led to an improvement in the protection system. There is currently much more active capital and a desire for investment than transactions and quality investment opportunities. We do not expect significant or faster changes either in the near or distant future. Climate change brings new challenges, but also opportunities for the real estate market. Property owners, investors, and local communities need to be aware of these changes and adapt to protect and increase the value of their properties. An approach to protective measures, sustainable construction, and adjusting infrastructure is crucial for long-term sustainability and the value of coastal properties – concludes Matej Samardžić. The article was taken from Slobodna Dalmacija.

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