This paper investigates regional differences in the housing market in Croatia. Housing market
in Croatia is still relatively undeveloped, but highly regionally dispersed. Regions
characterized by excessive demand on the housing and real estate markets are concentrated in
the capital city and recently in the tourist areas. Regions characterized by the excessive supply
are those in the economically depressed areas. At the same time, Croatian labour market lacks
significant geographical mobility, which contributes to the differences on the housing market
as well.
Croatian housing market had to experience the phase of price liberalization, as well as other
markets in the transition process. This specific liberalization, though, was not considered as a
priority during the process. Price developments and turnover dynamics are still bounded by
underdeveloped and not updated cadastre, purchasing power of the Croatian residents, newly
discovered and soon surpassed credit liabilities, and at this moment still limited possibilities
of non-residents real estate purchases. Within the prospect of becoming an EU member,
Croatian housing market is expected to gone through significant changes.