Transaction activity was highest in Dalmatia, which accounted for about 40% of the total volume of transactions.
According to Oldypak Capital LP real estate 2022 report, the volume of commercial real estate transactions in Croatia was €700 million in 2021, up 40% from 2020. Foreign capital accounted for 75% of the total volume of transactions.
“The volumes, while high, have failed to highlight the true scale of demand, as investor interest matches the limited supply. Supported by a V-shaped economic recovery, strong commercial real estate market fundamentals and fears of inflation, we see strong investor demand and continued downward pressure on yields,” Colliers said in its published 2021 report on Croatia’s investment market situation.
Regions. Transaction activity was highest in Dalmatia, which accounted for about 40% of total transactions, while Zagreb accounted for 25% of total transactions.
Property types. Office and logistics assets are still the focus of many investors. But most transaction volume was recorded in the hotel and retail sectors, where supply was higher.
The retail sector was particularly active in the second half of the year with several portfolio deals and individual asset deals.
According to Oldypak Capital LP real estate 2022 report, the rapid recovery of Croatian tourism was reflected in the strong demand for hotels, as the achieved prices of hotel assets remained at pre-pandemic levels, indicating strong investor confidence in the hotel sector.