Croatia Has Buyers but Too Few Properties for Sale

Croatia’s commercial property investment market is constrained less by a shortage of buyers than by a limited supply of high-quality assets whose owners are prepared to sell. Demand remains focused on shopping centres and retail parks, modern offices, logistics facilities and hotels, but the market’s small size limits the number of large transactions. Investment volume exceeded €170 million in 2025, while activity in 2026 remains concentrated in Zagreb, Split and Rijeka.

High-quality assets rarely come to market

Low transaction volume in Croatia does not necessarily indicate weak investor demand. CIJ.World reports that buyers continue to search for stabilised properties with dependable rental income, but relatively few suitable assets are actually being offered for sale.

Owners of fully occupied shopping centres, offices and warehouses often have little economic reason to dispose of them. If a property generates predictable cash flow and carries manageable financing, holding it may be more attractive than realising a sale. Disposals are more likely when owners need to fund another development, reduce debt or restructure a portfolio.

The effect is particularly important in a relatively small market. A handful of large assets can transform annual transaction volume, while their absence can sharply depress the total. Year-to-year activity may therefore reflect the availability of property for sale as much as changes in underlying investor appetite.

Investment exceeded €170 million in 2025

CBRE estimates that commercial real estate investment in Croatia exceeded €170 million in 2025, increasing from the previous year. Retail generated roughly half of total investment volume.

Notable deals included the sale of Zagreb’s Nama department store and transactions involving the Matrix C, Fingo and Allianz office properties. The partial sale of City Center One in Split was another major transaction, although CBRE excluded it from its annual investment-volume calculation.

Foreign capital played a leading role in the Croatian market in 2025, with international investors focusing particularly on retail and office assets. CBRE expected continued activity in hospitality and offices in 2026 alongside stable retail investment.

The €170 million figure should be viewed in the context of Croatia’s market size rather than compared directly with Germany, France or Poland. The availability of individual institutional-quality properties is often more important than the headline annual total.

Retail accounts for about 60% of investment

Retail remained Croatia’s largest commercial property investment sector in the first half of 2026. Colliers estimated its share at approximately 60% of total investment volume.

Investors are particularly interested in properties offering stable cash flows and long lease profiles. Existing tenant contracts and operating histories make established shopping centres and retail parks easier for professional investors to underwrite.

Croatia already has a mature stock of major shopping centres, while retail parks continue to expand. Those assets provide some of the country’s most readily investible commercial property.

The same strength limits supply. Owners of well-performing retail assets may prefer to keep collecting rent rather than sell.

Colliers also describes demand for stabilised income-producing real estate as strong overall, with transaction activity constrained by limited availability of institutional-grade product. Investment is concentrated primarily in Zagreb, Rijeka and Split.

Zagreb has very little vacant office space

Zagreb’s office market remains exceptionally tight. Vacancy is below 2.5%, modern supply is limited and sustained demand for Class A space is supporting rents.

For investors, low vacancy makes fully leased office properties particularly attractive. It also reduces the incentive for existing owners to sell a building at a discount.

New development could gradually improve market depth. In the first half of 2025, Colliers identified more than 170,000 square metres of offices either under construction or announced. Some of those properties may eventually move from developers to long-term investors after completion, leasing and stabilisation.

This matters to international funds, which generally need more than a single acquisition opportunity. The ability to build a portfolio of comparable assets and eventually sell it is part of the investment decision.

Modern logistics availability has fallen to about 1%

The shortage is even more pronounced in modern logistics property around Zagreb.

Availability of modern industrial and warehouse space fell to around 1% in the second quarter of 2026 from just above 2% in the previous quarter. No significant modern stock was completed during the quarter.

At the same time, approximately 165,000 square metres of industrial and logistics property was under construction.

Limited availability is pushing development beyond Zagreb’s administrative boundaries toward Velika Gorica, Jastrebarsko, Samobor and other locations with access to motorways and Zagreb Airport.

For investment markets, this new construction matters with a delay. A warehouse first needs to be completed and leased. Once occupied under longer contracts by established retailers, manufacturers or logistics groups, it can become an institutional investment asset.

Croatia competes with neighbouring markets for capital

Asset scarcity also creates a disadvantage. An international investor does not have to wait indefinitely for a Croatian property to become available and can compare opportunities in Slovenia, Serbia, Bulgaria, Romania and other Central and Southeast European markets.

Capital remains active across the region but has become more selective. Investors are placing greater emphasis on resilient income, strong locations and assets that can later be sold into a functioning institutional market.

CBRE reports that regional and domestic investors increased their role in Southeast Europe during 2025, while Croatia and Slovenia maintained stronger foreign participation than some neighbouring markets. Offices generated more than half of regional investment activity, followed by retail at more than 20%.

For Croatia, this means that foreign demand alone is insufficient. When a seller’s valuation cannot be supported by rents and financing costs, buyers can simply allocate capital elsewhere.

Hotels remain a distinct investment market

The Adriatic coast offers another source of potential large transactions: hotels.

Unlike a conventional office building, a hotel combines real estate with an operating business. Its value depends on occupancy, room rates, brand, management, staffing and future capital expenditure as well as the building itself.

That can reduce the number of willing sellers. For a large hotel group, ownership of the property may be central to its operating model, and investor interest alone does not create a reason to sell.

Croatia recorded more than 21.8 million tourist arrivals and 110.1 million overnight stays in 2025, both record levels. Arrivals increased 2% and nights 1%, while the Adriatic accounted for 104.6 million overnight stays.

Those figures support demand for hospitality assets but do not remove the need to analyse individual properties. A hotel can benefit from high occupancy and a scarce waterfront location while another may remain dependent on a short season and require significant renovation spending.

Tourism continued to grow in 2026

Croatia recorded 17.5 million tourist arrivals and 90.5 million overnight stays from January through August 2026. Both figures were about 1% higher than a year earlier.

The Adriatic generated 86.7 million overnight stays, an increase of 0.5%. August arrivals exceeded five million for the first time.

Revenue from foreign tourists reached €945.2 million in the first quarter, increasing by 9.2%, or €79.7 million, from the same period of 2025.

For hotel investors, the numbers confirm resilient demand but do not eliminate risks from seasonality, operating-cost inflation and the expense of renovating older properties.

Economic growth is slowing while inflation stays high

Croatia’s economy continues to support occupier demand, although growth is moderating.

The European Commission expects real GDP growth to slow from 3.4% in 2025 to 2.7% in 2026 and 2.5% in 2027.

Unemployment is forecast at 4.8% in both 2026 and 2027. Inflation remains more problematic, with the Commission projecting an increase from 4.4% in 2025 to 4.6% this year before a decline to 2.7% in 2027.

Higher inflation has mixed effects on real estate. Economic activity and nominal revenue growth can support tenants, while construction, energy and labour costs make buildings more expensive to develop and operate. Tighter financing conditions also limit the valuation investors can justify for a given rental stream.

Development can create future investment stock

Croatia’s main structural constraint remains market depth. More modern offices, warehouses and retail parks would expand the range of properties available to investors after those assets are completed and leased.

For developers, selling a stabilised project can release capital for another development. For funds, buying an already completed and occupied building provides immediate income without taking construction risk.

New construction does not automatically produce transactions. Some developers keep completed buildings on their own balance sheets, while long-term owners may retain properties for many years.

The volatility of recent annual totals shows how strongly individual deals matter. Colliers estimated Croatian commercial real estate investment at approximately €240 million in 2024, with Zagreb accounting for 60% of transactions. Volume was nevertheless 65% below the previous year, largely because fewer large hotel transactions took place.

A few large properties entering or leaving the market can therefore materially change Croatia’s annual investment statistics without a comparable change in underlying buyer demand.

As International Investment experts report, Croatia’s modest transaction volume should not currently be interpreted as evidence of weak investment appetite. The more important constraint is limited market depth: there are relatively few institutional-quality properties, and owners of stable assets often have little reason to sell. Scarcity can support pricing for prime buildings, but it also makes it harder for large funds to build portfolios and increases the risk that capital moves to neighbouring countries. The next stage of market growth will depend on how many newly built offices, warehouses and retail properties eventually come to market and whether existing owners become more willing to recycle capital.

FAQ: Croatian property investment

Why are there relatively few large property transactions in Croatia?

The market is small and many high-quality income-producing properties are held by owners who have no immediate reason to sell. Transaction volume can therefore remain low even when buyer demand is healthy.

How much was invested in Croatian commercial property?

CBRE estimates that investment volume exceeded €170 million in 2025. Colliers put the 2024 total at approximately €240 million.

Why did investment volume differ so much between 2024 and 2025?

Annual figures can be heavily influenced by a handful of large deals. In 2024, the absence of major hotel transactions contributed to a sharp decline from the previous year.

Which sector currently attracts the most investment?

Retail accounted for approximately 60% of investment volume in Colliers’ first-half 2026 assessment.

Where is investment concentrated?

Zagreb is the main market, with additional institutional assets in Rijeka and Split. Hospitality investment is concentrated in established Adriatic tourism destinations.

What is happening in Zagreb’s office market?

Vacancy is below 2.5%, while high-quality modern space is limited. That supports rents and investor demand for fully leased buildings.

Is there a shortage of logistics space?

Yes. Modern logistics availability around Zagreb was approximately 1% in the second quarter of 2026.

Are foreign investors interested in Croatia?

Yes. Cross-border capital remains an important part of the Croatian investment market, although activity depends on suitable assets becoming available.

Why do Croatian hotels rarely trade?

A hotel is both a property and an operating business. Owners must consider brand, management strategy, tourism demand and the role of real estate within the wider hotel group.

Can construction increase property transaction volume?

Yes, if some newly completed and leased offices, warehouses and retail properties are eventually sold to long-term investors. Construction alone does not guarantee a transaction.