Where to Buy Property for Rent in Croatia

For quite some time now, real estate has not only been about homes but also about real investments and sources of income. For this reason, many people invest their savings in real estate, seeing it as an additional source of profit. 

In the following paragraphs, we’ll explore which locations are the best for investing in rental properties and why.

What Makes a Location Attractive

When we say something is profitable, we mean that the investment quickly pays off. In marketing terms, this concept is called ROI or Return on Investment. In the case of rental properties, several factors determine how fast the investment will be returned. 

For example, it’s important to know the demand for rentals in a certain area – whether it’s constant or seasonal, long-term or short-term; whether the property is near important amenities like schools, kindergartens, or universities; whether there are new infrastructure projects in the area; and whether the region shows potential for growth.

Cities and Regions with the Highest Rental Demand

It’s no secret that economic development in Croatia is uneven – and that’s nothing new. The causes are various and go far back in history. Although the state tries to balance development, the issue is too deep to be solved overnight. For this reason, rental demand and prices vary greatly from city to city.

Zagreb – Stable Returns in the Capital

Investing in Zagreb is always a smart move. It’s perhaps the only city in Croatia that combines all the elements of a profitable location – ideal for both short-term tourist rentals and long-term student or business leases. 

No matter which neighborhood you invest in, the investment will pay off because the demand is truly high. Apartments in Zagreb are sought after by students, local and foreign workers, and tourists throughout the year.

Split – High Seasonal Earnings

Split is primarily known as a tourist city with guaranteed occupancy during the summer season. However, demand remains strong even after the season due to its student population and role as the regional business center. 

The demand for rental apartments in Split is enormous, which makes rental prices the highest in Croatia. Unlike Zagreb, however, Split is geographically smaller and limited in expansion, meaning there are fewer housing units that consistently maintain high prices. With strong demand for neighborhoods in Split, the city remains an unmistakable investment choice.

Zadar – A Student City and a Family Haven

Zadar can be said to combine the qualities of Split and Zagreb, but in a smaller, calmer setting. It’s both a tourist and student city, but thanks to its practicality, focus on economic growth, and potential for expansion, it’s an excellent city for real estate investment. 

Luxury apartments in peaceful suburbs near clean beaches perform exceptionally well, as do luxury villas in the surrounding areas that ensure profit throughout the season. Buying property in Zadar therefore holds tremendous potential for return and profit.

Šibenik – A Small City with Great Potential

Šibenik still has some of the lowest property prices among Dalmatian coastal cities. However, with ongoing urban development and infrastructure investment supported by EU funds, prices per square meter are rising. This makes real estate in Šibenik a promising opportunity for growth.

Šibenik is also home to a large student population and experiences a strong tourist season, making it a highly attractive location for rental investments.

Istria – A Stable Region with High Demand

Although prices are similar to Dalmatia’s – especially for luxury properties – the Istrian market is more stable and less volatile. Istria attracts mostly foreign, affluent tourists, often older and seeking tranquility. Therefore, investing in rustic luxury villas with pools in the countryside is a solid and profitable choice.

Islands – The Perfect Escape

With the rise of digital nomadism, workers are no longer tied to specific locations, leading many to seek peaceful places to live and work. The islands, particularly those in Central Dalmatia, have proven to be ideal for remote work and investment properties. For digital nomads, long-term rentals are an option, while seasonal tourist rentals remain highly popular in summer months.

What to Consider Before Buying a Rental Property

Investing in a rental property can be highly profitable when based on proper preparation and analysis. Before purchasing, always check the property’s documentation and ensure all required permits are in place. Analyze both the micro-location and the broader area, as not all neighborhoods within the same city offer equal value. The rental price you can set will largely depend on this.

It’s also important to review average rental prices and yields in the area where you plan to invest to better estimate your potential return on investment. 

Conclusion

Buying property for rent can be one of the safest and most stable forms of investment, especially when all key factors affecting profitability are carefully considered. Location remains the most important factor. Cities like Zagreb, Split, Zadar, and Šibenik, along with regions like Istria and the Central Dalmatian islands, offer different advantages depending on the type of rental investors are targeting (tourist, student, long-term, luxury, etc.).

It’s crucial to invest time in analyzing demand, infrastructure, demographic trends, and local development plans. Additionally, understanding the local rental market and maintenance costs is key to accurately estimating future profits and returns.

With the right approach, a good location, and proper preparation, investing in rental real estate can bring not only steady income but also long-term financial security.