Boosted by the economic growth and yield pursuit Croatian real estate market recorded high investment volumes in 2016, continuing the upward trend which started in 2015. Investors were mostly focused on prime properties in retail and hotel sectors which led to yield compression. The hotel and retail sectors also saw the majority of new developments in 2016. Several major banks disposed of NPL portfolios backed by properties of lower quality.

The Croatian real estate market expects the resumption of high investment volumes in 2017, underpinned by economy’s renewed strength, yield opportunities and improved investor sentiment. As most active sectors in terms of investment and development volumes in the coming year we see office, retail and HTL.