The impact of the euro on Croatian real estate
As you all probably already know, Croatia adopted the euro in January 2023. But what does this mean for the local economy and prices?
As you all probably already know, Croatia adopted the euro in January 2023. But what does this mean for the local economy and prices?
After adopting the euro, Croatia went through an initial period of adjustment. The prices of goods and services were converted from the national currency to the euro at a predetermined exchange rate. The aim was to maintain price stability during the transition and to avoid significant market disturbances.
Although the introduction of the euro may lead to price equalisation within the euro area, we also need to assess the potential impact on the cost of living. In the short term, there may be price fluctuations in some sectors due to various factors. There is likely to be increased competition and higher demand among European investors. A large number of European companies and investors use the euro for payments, even those outside the euro area. This means that there will be more interest in Croatian real estate, which will increase its value.
In addition to investors, Croatia will also attract more tourists because they no longer need to exchange money. Local tourism was already growing before, but now it is expected to increase even more. Popular tourist destinations may therefore see prices rise. Therefore, if you want your own property in Croatia, now is the right time, so do not hesitate to contact us.
But the price increase does not have to be downright negative. The money flowing into Croatia thanks to investors and tourists can then be used to further develop and modernise holiday resorts. And even if Croatian property prices rise, they are still cheaper than those in Prague, for example.
In addition to the euro, Croatia's entry into the eurozone this summer will also contribute to higher visitor numbers. This means that there will no longer be checks at the borders and residents of European countries can pass through without inspection. So you no longer have to wait in queues and wait to be checked, which will shorten your journey.