Croatia’s Private Accommodation Faces Structural Shift
Decline in Registered Beds Signals Market Change
Croatia’s private and family-run accommodation sector entered 2025 under mounting pressure from new tax measures and legislative changes. While national tourism figures still show modest growth, underlying data reveal structural adjustments within the private lodging segment.
According to the Croatian National Tourist Board, 668,514 beds were registered in private accommodation at the end of August 2025, compared to 671,508 a year earlier. This represents a loss of nearly 3,000 beds within twelve months, including the peak summer season. Although the decline appears moderate, analysts view it as the beginning of a potentially accelerating trend.
Tourism Totals Remain Relatively Stable
In the first eleven months of the year, the commercial sector recorded 20.4 million arrivals and 94.7 million overnight stays, marking increases of 2% and 1% respectively year-on-year. The non-commercial segment remained broadly unchanged, with 460,000 arrivals and 10.7 million overnight stays.
However, July and August showed flat arrival numbers and a 1% decline in overnight stays, indicating a plateau in peak-season performance.
Taxation and Regulatory Pressures Reshape the Sector
The introduction of a property tax, higher flat-rate levies, deadlines for removing categorisation permits in residential buildings with more than four units, and a halt in issuing new permits for such properties have significantly altered operating conditions for private landlords.
Rising utility, maintenance and service costs have further eroded margins, particularly for small-scale and budget accommodation providers. Many owners have exited the market, contributing to the visible decline in registered beds.
Budget Segment Shrinks as Luxury Competition Intensifies
Lower-category private accommodation is expected to continue contracting, with some properties shifting to long-term rentals, worker housing or being sold. Meanwhile, luxury villas with pools continue to expand slightly, though competition is intensifying.
High-end mobile homes in campsites and centrally managed mixed-use resort developments are placing downward pressure on pricing and occupancy in the premium segment.
Changing Demand Patterns
German tourists, traditionally a core market for Croatian family accommodation, are showing signs of weakening demand. At the same time, wealthier guests from Eastern Europe are gaining prominence, gradually reshaping the visitor profile.
These shifts suggest a transformation not only in supply but also in the structure of demand within Croatia’s accommodation market.
Outlook for 2026
Analysts expect further consolidation in 2026, particularly within lower-category private lodging. Regulatory tightening and cost pressures are likely to accelerate the sector’s restructuring.
As reported by experts at International Investment, Croatia’s private accommodation market is entering a period of profound structural change, with fewer beds, evolving guest demographics and a gradual shift toward more professionalized and capital-intensive hospitality formats.