July the 11th, 2026 – Croatia has found itself among only three EU countries to record a fall in property sales during the first quarter of this year.
Croatia was one of just three EU Member States to record a decline in residential property sales during the first quarter of 2026, according to the latest figures from Eurostat. While much of the EU housing market continued to recover, Index reports that Croatia joined Luxembourg and neighbouring Slovenia as the only EU countries to register fewer property transactions compared with the same period back in 2025.
Most EU markets are continuing to recover
Across the European Union, residential property transactions increased by an average of 7.3% year-on-year in the first quarter of 2026. The strongest growth was recorded in Luxembourg, where sales rose by 145.1%, reflecting an exceptionally weak comparison period a year earlier. Hungary followed with growth of 34.7%, while Portugal recorded a 24.9% increase. In stark contrast, Croatia saw property sales fall by a considerable 3.9%, making it one of the weakest-performing housing markets in the entire bloc during the observed period. Slovenia recorded a decline of 3.5%, while Finland also experienced a slight decrease.
Prices continue to rise despite fewer sales
The decline in transactions comes even as Croatian property prices continue to (unsurprisingly) climb. Demand remains strong, particularly in the City of Zagreb and along the Adriatic coast, but higher borrowing costs, limited supply and elevated prices have made purchasing property increasingly difficult for many buyers. Analysts say the market is showing signs of cooling, with fewer completed transactions despite continued upward pressure on prices.
Affordability remains an extremely difficult challenge
The latest Eurostat figures highlight the growing affordability issues currently facing Croatia’s housing market. Although demand from foreign buyers and domestic investors remains relatively resilient, many first-time buyers continue to struggle with high property values and mortgage costs. Economists say future market activity will largely depend on interest rate trends, new housing supply and broader economic conditions, all of which will influence whether transaction volumes recover later in the year.
