Luxury Zagreb Apartments Sell Out Amid Rising Prices and Shifting Demand

In a surprising turn for the Zagreb real estate market, larger luxury apartments in a new development have sold out rapidly, defying the traditional preference for smaller units. Zenon Pavić from Eurovilla agency noted that while smaller apartments are typically the market's focus, this particular project saw higher demand for its larger residences, with some smaller units even being combined to create bigger ones.

This trend occurs against a backdrop of a paradoxical market situation where apartment prices are climbing, yet sales transactions are declining. The supply of available properties remains restricted, and new construction projects predominantly feature higher-priced, luxury segments. This imbalance is further exacerbated by the decreasing creditworthiness of some potential buyers, according to agents.

Prices for these new luxury apartments have seen significant increases since construction began in the fall of 2024. Initially priced between 5,600 and 7,400 euros per square meter, prices were adjusted upwards three times by 2026, reaching between 7,200 and 8,400 euros per square meter as the project neared completion.

Experts like Ivana Čikić, director of Dom ekspert agency, point to the investors' focus on luxury projects as a contributing factor. She suggests that a stabilization of new construction prices could occur if investors recognize the potential in developing housing for buyers with lower purchasing power. Čikić also emphasized the importance of the used housing market, which constitutes the majority of transactions. She believes that lowering prices for older apartments could redirect demand from new constructions and help moderate price increases in the new build sector.

“

We had combinations where smaller apartments were combined into larger ones. Classically, smaller apartments are the most interesting on the market, but on this project, we saw that larger apartments were the most sought after.