Types of Land in Croatia – A Guide to Purpose, Value, and Investment Opportunities

Purchasing land is one of those investments that offers the greatest level of freedom and creativity, allowing you to follow the construction process from the very beginning. With increased interest in investment properties and the development of infrastructure, the demand for building land is also rising. 

Different types of land have different purposes, and accordingly, different prices and investment potential.

Types of Land and Their Purpose

Land in Croatia is classified according to the purpose defined by spatial plans of cities and municipalities. We distinguish between building land, agricultural land, industrial land, commercial land, and tourism-related land.

Building Land

Building land refers to areas within construction zones defined by spatial plans.

These zones are intended for constructing residential, tourism-related, public, or commercial buildings. Building land must be located in a designated construction area and have adequate infrastructure. Adequate infrastructure includes an access road and connections for sewage, electricity, and water. Compared to other types of land, building land has the highest value and is the quickest and easiest to sell.

For construction and land use, it is necessary to obtain a building permit and usage permit and to follow local urban planning regulations. Although it achieves the highest price, the value of building land varies based on factors such as location (for example, a city or proximity to the sea), infrastructure availability, plot size, and similar.

Buyers of building land are advised to check the spatial plan and land registry to ensure the land is officially classified as building land and free of encumbrances. At this stage, we also recommend engaging an experienced real estate agent.

Agricultural Land

Agricultural land is categorized by purpose and type into arable land (fields, gardens, and meadows), orchards and vineyards, grasslands, pastures, and olive groves.

Agricultural land is more affordable for smaller investors; however, it has its limitations. These limitations include the designated purpose or waiting for the possibility of conversion into building land. However, although unsuitable for construction, agricultural land is ideal for family farms (OPGs), vineyards, and olive groves. It is also important to note that there are regulatory requirements for opening an OPG, making consultation with an experienced agent advisable.

A conditional downside of agricultural land is that it can be used exclusively for agricultural purposes, though we assume buyers are aware of this when making a purchase. 

Although the price is lower compared to building land, agricultural land typically takes longer to sell.

Industrial and Commercial Land

Industrial and commercial land is intended for the development of economic activities, meaning it can host agricultural facilities, warehouses, office complexes, and logistics centers. These plots are usually located near highways, highway exits, important corridors and bypass roads, or close to industrial zones and major cities.

Advantages of industrial land include available infrastructure and the possibility of constructing warehouses, halls, and production facilities. The disadvantages of this type of land include higher purchase costs and maintenance, as well as dependence on economic conditions and market demand. 

Tourism Land and Development Projects

One of the most sought-after land categories in coastal areas is tourism-related land. This land is closely connected to the development of tourism projects such as camps, glamping resorts, eco-resorts, rural tourism resorts, or boutique hotels.

Since tourism is a highly profitable industry in Croatia, this type of investment is very worthwhile.

Limitations of this land type include dependence on spatial plans and the need to obtain numerous permits.

Criteria for Choosing Land Based on Purpose

The type of land is certainly considered before deciding to purchase. It is unlikely that someone searches for land in general and decides on the type afterward; buyers usually begin their search with a clear plan.

Regardless, purchasing any type of land requires analyzing factors such as location, spatial plans, and terrain characteristics.

Location and Proximity to Infrastructure

Location is the factor that most influences price and profitability. Good city locations include land near schools, hospitals, city centers, and public services. 

Land near the sea or with sea views is also highly valued; however, if located in rural areas, additional investment in infrastructure may be needed.

If infrastructure is lacking, it is necessary to check with the local municipality for future communal planning.

Purpose According to Spatial Plans and Permits

In the Republic of Croatia, spatial plans regulate where construction is allowed and how land may be used. According to spatial plans, there are residential, agricultural, tourism, and industrial zones.

Before purchasing land, one should always check the spatial plans of the local municipality. For industrial and building land, it is also important to check for existing building or urban planning permits, while tourism-related land requires verifying allowed uses based on spatial plans.

Plot Size, Terrain Configuration, and Access Roads

The size and shape of the land affect its commercial value and usability. It can happen that a plot has a large total area but is too narrow for the desired building. Terrain configuration also affects value-flat and cleared land is more construction-ready, while hilly land may require additional investment before it becomes suitable for building.

Access and access roads also contribute to the land’s value-both in price and usability-so it is essential to verify that access is guaranteed before purchase.

Prices and Factors Affecting Land Value

Land prices depend on several factors. Depending on the type of land, prices vary. For example, large agricultural plots are generally cheaper than smaller building plots in the same location, meaning building land is more expensive than agricultural land. 

Building land of the same size located directly by the sea will not have the same price as land located inland. Building land in cities and villages also varies in value due to higher demand.

Location, land type, plot size, and terrain configuration-all are factors that dictate the price.

Conclusion

Purchasing land in Croatia offers a wide range of opportunities-from residential construction and business development to investment in agriculture or tourism. The key to a successful investment lies in understanding the type of land, its purpose according to spatial plans, and an accurate assessment of the factors that affect its value-primarily location and available infrastructure. 

Before making the final decision, a detailed review of documentation and consultation with experts is recommended, as a well-informed buyer makes a profitable and sustainable long-term decision.