Split or Dubrovnik – Which City is Better for Real Estate Investment?

Split and Dubrovnik are often considered the two most beautiful cities in Croatia, thanks to their stunning coastline and rich history.

What makes them even more special is the fact that they have managed to preserve their historical cores despite wars and turbulent times. These cities are not large, so you can visit almost all landmarks within just a 10-minute drive.

Besides cultural and historical treasures, Split and Dubrovnik captivate with their natural beauty and pleasant Mediterranean climate, making them perfect destinations for all lovers of beauty and history.

Advantages and Disadvantages

Advantages of Split

Both cities have their advantages and disadvantages, but Split stands out for several key reasons. Its greatest advantage lies in the wide range of essential amenities that are easily accessible and abundant, which is a significant benefit for real estate in Split.

The city hosts many public and private clinics, including one of the largest hospitals in Croatia. Additionally, there are various public institutions, educational facilities, and stores of well-known brands such as Zara, Massimo Dutti, C&A, and many others.

Moreover, Split is exceptionally well connected by road and sea transport, allowing easy access to other islands and parts of Croatia. There is also an airport nearby, which, especially during the summer months, provides excellent connections with many global destinations.

Disadvantages of Split

The downside of the real estate market in Split lies in its rapid urbanization, leading to an excessive increase in population and consequently creating more congestion and noise. The city is rapidly expanding, often without sufficient control, which affects the quality of everyday life. Many, therefore, choose real estate in Dubrovnik in search of a quieter and more peaceful environment.

Many people decide to live outside the city center in search of a quieter and more peaceful setting.

Additionally, Split still faces challenges related to infrastructure, particularly in terms of its road network, which is in poor condition in many areas due to its outdated nature. A major problem is also the lack of parking spaces, which further complicates life in the bustling urban environment.

Advantages of Dubrovnik

One of Dubrovnik’s greatest advantages is its extremely rich history, which has become increasingly recognizable, especially thanks to the filming of the popular series Game of Thrones on Stradun and the city walls.

The Old Town of Dubrovnik, entirely enclosed by city walls, stands out with its incredible beauty and historical significance. At the top of the walls, there is a pedestrian walkway that allows visitors to enjoy a spectacular panoramic view of the city and the coastline while exploring this culturally rich and well-preserved historical heritage.

Additionally, above the Old Town rises Mount Srđ, which can be reached by cable car or car. From the top of Srđ, there is a unique view of the entire Dubrovnik area, its islands, and the coastline, which takes your breath away and leaves a strong impression on those looking to buy an apartment in Dubrovnik.

Disadvantages of Dubrovnik

Although Dubrovnik offers many advantages, there are also some drawbacks that have become more apparent, especially during the summer months.

One of the biggest disadvantages is the lack of space for the number of visitors. The narrow, historic streets of the Old Town and the city center become too small for the crowds that appear during the peak tourist season.

For this reason, restrictions on the daily number of visitors have even been introduced, particularly in the Old Town and on the walls, as it has become unsustainable to accommodate such a large number of tourists visiting Stradun and its historical sites.

Available Amenities

Furthermore, Dubrovnik faces the problem of a lack of amenities to meet the needs of the local population outside the tourist season. Many shops, restaurants, and cafes operate mainly during the summer months, while the off-season offer remains scarce.

This creates difficulties for residents who live in Dubrovnik year-round. Additionally, there is a shortage of doctors of various specialties and basic medical services, posing an additional challenge to everyday life in the city.

Connectivity Across Croatia

Although efforts have been made in recent years to improve connectivity, Dubrovnik remains relatively isolated from the rest of Croatia. However, the recent completion of the Pelješac Bridge represents a significant step toward better connectivity of southern Croatia with the rest of the country, reducing travel distances and improving mobility.

Return on Investment in Dubrovnik

Unlike many other cities, Dubrovnik still offers the possibility of a peaceful life, making it increasingly attractive to foreign and domestic buyers looking for houses in Dubrovnik, whether for personal use or as an investment. Its unique combination of history, beauty, and a peaceful environment attracts buyers who want to enjoy a distinctive lifestyle while also generating profit.

The city also offers excellent investment conditions, especially in the tourist rental sector. Every year, Dubrovnik faces a shortage of accommodations, as more and more tourists arrive from all over the world, and the number of existing accommodation capacities is insufficient to meet demand. Because of this, investing in real estate in Dubrovnik for rental purposes has become very profitable.

Although prices per square meter continue to rise, Dubrovnik remains popular and attractive, as space for new construction is becoming increasingly limited.

Increased demand, combined with the lack of available land in Dubrovnik, further raises prices, making this market even more competitive.

Return on Investment in Split

A similar problem of urbanization and reduced space for new projects is faced by Split, which is why construction is expanding to surrounding areas to meet the growing demand for real estate.

Investment in tourism is most profitable in apartments located in the old part of Split, i.e., in its center, where the tourist season can last for more than six months. This creates exceptional opportunities for generating significant income and quickly recovering the invested amount, as demand for accommodation in that area is always rising. Tourists want to stay in the heart of the city, where all key amenities and attractions are within reach, which further increases the value of real estate.

Split is also very attractive to domestic buyers, who often purchase apartments both for permanent residence and for tourist rental. The demand for such properties is constantly growing, making the city an excellent location for investment.

Return on Investment in Split and Dubrovnik

Although both cities are excellent for investment, Split stands out as a better option for permanent residence. It offers a wide range of amenities, such as educational institutions, healthcare services, shops, and restaurants, as well as better connectivity, which makes everyday life easier.

Therefore, while Dubrovnik offers excellent conditions for tourist investments, Split provides better conditions for long-term residence and family life.

Property Value

The value of real estate in both cities, as well as in most other urban areas, largely depends on several key factors. The most important ones are the location of the property, its condition (whether it is new construction or an older building), and additional features such as a sea view, which can significantly increase the price.

Locations

Properties in central, historic parts of the cities, as well as those offering panoramic sea views, are usually more expensive, while properties in slightly more peripheral areas are more affordable.

Real Estate Prices

Currently, the average real estate prices in Split and Dubrovnik range from approximately €4,000 per square meter, with prices reaching up to €10,000 per square meter, especially for luxury properties or those in prestigious locations.

Therefore, although prices may vary depending on the specifics of each property, both cities offer a wide range of real estate options that cater to different budgets and investor needs.