Trends in the real estate market are the key to understanding the dynamics that shape this complex industry. The real estate market depends on numerous factors, most of all on economic cycles and demographic changes. These changes shape not only the way in which real estate is bought and sold in Split, but also how new projects are planned and developed. Through the analysis of these trends, we can expect that the real estate market will continue to develop in Split.
Economic Factors Shaping the Market in 2025
Economic factors influencing the real estate market in Split in 2025 include interest rates, inflation, and recovery from an economic crisis that has not heavily impacted the area. Changes in decisions to increase or decrease interest rates are expected, directly affecting loan availability for buyers. Additionally, fluctuations in raw material and construction material prices drive up construction costs, reflecting on property prices.
Impact of Croatia’s Economic Growth on the Real Estate Market
The economic growth of Croatia in 2025 will significantly affect the real estate market, encouraging an increase in demand for apartments and business premises, which could result in an increase in prices. As a result of the strengthening of the domestic economy, foreign investors are also attracted, so as before, an increase in interest in real estate in tourist counties, including houses and land in Split, is expected.
Inflation, Interest Rates, and Their Impact on Property Prices
Inflation and interest rates substantially impact property prices. When inflation rises, so do construction and material costs, potentially leading to higher property prices. On the other hand, higher interest rates make mortgages more expensive, reducing the purchasing power of potential buyers and potentially lowering property demand.
Supply and Demand Trends in 2025
In 2025, supply and demand trends in the real estate market are expected to be shaped by various factors. Increased urbanization and population growth in cities will boost demand for apartments, particularly smaller, more affordable units. Additionally, the rise of remote work may influence demand for properties in rural or suburban areas, while larger cities maintain stable demand due to business and cultural amenities.
Growing Demand for Luxury Coastal Properties
This type of demand is becoming more pronounced as a result of changing lifestyles and beautiful natural environments. Many buyers aspire to more space and the benefits of living by the sea, which further boosts the luxury real estate market in attractive coastal locations. This trend is particularly evident among buyers with high paying power, who are also lovers of travel and investors who are looking for other real estate such as apartments for sale in Split, which will serve as a type of long-term investment in addition to vacation.
Shift Toward More Affordable Housing Solutions
This is becoming an increasingly important topic in urban areas, highlighting the need for solutions enabling young families and individuals to acquire their homes more easily. Innovative approaches, such as building more housing units per square meter, developing social housing, and offering subsidized loans, are proposed solutions.
Property Prices and Market Forecasts for 2025
Real estate prices in many parts of the world are facing uncertainties caused by inflation, interest rate changes and economic developments, making forecasts for 2025 challenging. Although some regions are expected to stabilize or even slightly decline in prices, others could experience continued growth due to high demand and a shortage of housing units. Also, demand for luxury villas and real estate is expected to continue.
Expected Price Changes in Split’s Real Estate Market
Price changes are influenced by several factors, including property demand, infrastructure development, and tourism and demographic trends. Given the continued interest in Split as a popular destination for living and vacations, property prices may keep rising, particularly in more attractive parts of the city. However, potential price corrections could occur due to economic factors or changes in property-related legislation.
Neighborhoods Expected to Experience the Highest Price Increases
Neighbourhoods in Split like Bačvice and Meje may see the highest property price increases due to their proximity to beaches, urban amenities, and excellent connectivity to the city center. Areas like Spinut and Lovret are also becoming more popular among buyers due to their parks, schools, and other conveniences. Žnjan is expected to witness price increases due to infrastructure investments, such as the Žnjan Plateau, which will enhance its appeal for both living and tourism. Ultimately, factors like access to public transportation and quality of life play crucial roles in these anticipated changes.
New Construction Projects and Urban Infrastructure
Split is currently witnessing numerous investments in new construction projects and urban infrastructure aimed at improving residents’ quality of life and fostering development. These projects include constructing modern residential complexes, commercial spaces, and revitalizing public areas, further enhancing the city’s appeal. Plans to improve traffic infrastructure, such as road expansions and public transport modernization, are also in motion, aiming to ease movement and reduce congestion.
Impact of Urban Expansion on Housing Supply
In recent years, the urban expansion of Split has significantly affected the offer of housing, especially in the surrounding neighborhoods and settlements. With the increase in demand for housing, investors began to develop new buildings in Split. This trend leads to the improvement of urban amenities and infrastructure, but at the same time creates challenges such as increased traffic load and pressure on public services. Ultimately, urban sprawl can contribute to a better quality of life, but requires careful planning to ensure sustainability and balance.
Regulatory and Legal Changes in 2025
In 2025, the city of Split plans to implement several regulatory and legal changes impacting the housing sector’s development. One major change is the planned amendment to Split’s Urban Plan, enabling better development and organization of urban spaces and improving housing infrastructure. Additionally, new regulations governing property construction and use are expected, ensuring better property rights protection and quality of life for residents. These changes aim to enhance residents’ quality of life and benefit potential investors in the housing sector.
New Laws and Regulations Affecting Buyers and Sellers
In 2025, new laws and regulations are anticipated to significantly impact property buyers and sellers. One key change will be stricter regulation of transparency and consumer protection processes, making it easier for buyers to access property information and their rights. Measures to reduce administrative obstacles for sellers are also expected, speeding up the sales process.
How Government Policies Will Influence Property Demand
Government policies play a crucial role in shaping property demand, which will be especially evident in 2025 through incentives aimed at housing development. Support for young families and first-time property buyers is expected, potentially increasing demand. Additionally, policies regulating interest rates and financial instruments facilitating housing loans could further stimulate the market.
Conclusion
The real estate market in Split is expected to face significant trends shaping its development. Increased demand for housing, particularly among young families, will drive further property price increases. Sustainable and energy-efficient properties will become increasingly attractive, while urbanization and infrastructure development will further impact the popularity of specific locations. New government policies aimed at promoting housing and regulating the market will add further dynamism. All these changes indicate that Split’s real estate market will continue to grow and evolve.
Found this useful? Share with
Real Estate Coordinator
Adriana is a fast and energetic agent whose narrow specialty is apartments in Split and real estate on the island of Čiovo. She is very professional in fulfilling her obligations and has successfully completed the purchase and sale of several high-end residential properties. The key to her success is solving requests and requests from clients in a short period of time, while at the same time fulfilling tasks related to the company's operations. Every day, she works with the rest of the agency team to provide clients with the highest level of service and excellence.
Adriana is a fast and energetic agent whose narrow specialty is apartments in Split and real estate on the island of Čiovo. She is very professional in fulfilling her obligations and has successfully completed the purchase and sale of several high-end residential properties. The key to her success is solving requests and requests from clients in a short period of time, while at the same time fulfilling tasks related to the company's operations. Every day, she works with the rest of the agency team to provide clients with the highest level of service and excellence.
Want to connect with us? We'd love to hear from you! Send us a message, and we'll get back to you shortly.
