Dubrovnik

Investment summary

The baseline investment case for Dubrovnik rests on three pillars: consistently strong STR demand (66 % annualised occupancy underpinned by a 1.4 million annual arrivals figure that reached a record high in 2024), a supply-constrained residential market where Dubrovnik-Neretva County asking prices have risen roughly 30 % over three years, and Croatia's 2023 euro and Schengen accessions which structurally widened the buyer pool. Gross yields for well-managed STR apartments run in the 4–6 % range; the upper end is achievable for prime-located units operated professionally across the extended shoulder seasons. The upside scenario is anchored in Dubrovnik's sustained push toward year-round tourism, growing non-summer shoulder demand from cultural and gastronomic visitors, and ongoing infrastructure investment at Dubrovnik Airport — which processed a record 3 million passengers in 2024. Investors should factor in the 2025-introduced annual property tax (€0.60–€8.00/m² for non-primary residences), the strictly enforced 25 % VAT on new-build purchases from developers, and meaningful seasonality concentration risk given that the majority of STR revenue is generated in a five-month summer window.