Investing in Real Estate in Times of High Inflation

Inflation is here – what now?

If you have been keeping your money in the bank and watching its real value slowly disappear, you are not alone. Inflation in Croatia and Europe shows no signs of significantly slowing down, and investors, both small private ones and institutional ones, are increasingly turning to tangible assets. Real estate has once again become the “star” of investments.

Why real estate?

Simply put, at a time when inflation “eats” money, real estate remains stable. It often even grows in value while generating passive income through rent. Besides, people will always need a roof over their heads, and neither inflation nor AI changes that.

But… where and what to buy?

This is the question of all questions. In 2025, we see clear trends and areas that stand out as safe and smart investments. Here is where investing is currently most profitable:

• Apartments for long-term rent in Zagreb and Split

Zagreb and Split remain the two largest urban centres, with constant demand for long-term rentals. Students, young families, digital nomads: everyone is looking for quality accommodation. If you buy an apartment near a university, hospital or public transport, you will hardly ever be without a tenant.

• Smaller apartments on the Adriatic (but outside the season!)

Renting out tourist properties is no longer a purely seasonal business as it used to be. With a growing number of guests in the pre-season and post-season, smaller apartments in places such as Zadar, Poreč or Makarska offer an excellent ROI, provided you position and advertise them well.

• Commercial properties in up-and-coming neighbourhoods

Remote work has not destroyed office space, it has only redefined it. Small companies, agencies and IT start-ups are looking for flexible spaces in neighbourhoods such as Trešnjevka, Trnje or the wider centre of Split. Buying such a space can be a goldmine.

What should you pay particular attention to in 2025?

• New taxes and regulations, especially those related to property tax, VAT on resales, rental income tax, etc.
• Building condition and energy certificate: buyers and tenants increasingly look at heating and maintenance costs.
• Liquidity: not every property is equally easy to sell. Location and floor area make the difference.

Conclusion: real estate as a safety net

Investing in real estate in times of inflation is not only a smart move, it is often the most logical one. If you have capital that is “sleeping”, think about where it could work for you. And if you are not sure where to start, we are here to help. Whether it is a rental apartment, a seaside apartment or an office in a developing area, our team can help you find a property that has real potential, not just square metres.