Boro Vujović
Episode · #782
RITAM POSLA Boro Vujović
Guest Boro VujovićHosted by Lidija KiseljakMay 3, 2026
Boro Vujović
About this episode
What you'll hear in this conversation
Boro Vujović, the founder of Opereta Nekretnine, offers a view of the Croatian real estate market that often runs counter to official narratives. He challenges the effectiveness of recent property tax reforms, arguing they have done more to legalize existing rental agreements than to significantly increase the supply of long-term rentals. As new regulations reshape investment conditions and buyer demographics shift, Vujović reveals a market navigating both policy objectives and unexpected outcomes. He explains how these changes are altering Croatia's appeal to foreign investors and redefining which regions are now drawing the most attention. Listeners will come away with a sharper understanding of the forces truly at play in one of the region's most closely watched sectors.
Insights from the conversation
What to take from this episode
01
The new construction law's focus on "division of ownership in tourist zones" highlights how hotel investors often build apartments for sale to recoup their investment, making the hotel itself sustainable. If you want serious hotel development, you must account for the slow and small returns that push investors toward hybrid models.
02
The property tax, intended to reduce empty apartments, has proven ineffective because its cost — 800 euros annually for a 100 sq m apartment — is easily absorbed by owners who can afford to keep properties vacant. A minimal tax changes nothing for those already unwilling to rent; it only works if the financial disincentive crosses a real threshold.
03
The property tax, while failing to increase rental supply, did achieve an unintended but real outcome: the legalization of rental contracts, as many owners found it more advantageous to declare income than pay the new property tax. Policy can miss its primary target but still reshape market practices in unexpected ways.
04
The new requirement for 66% co-owner consent to rent apartments short-term will inevitably curb the creation of new units, directly impacting the pool of foreign investors who seek such opportunities. Restricting one type of supply can just as easily dampen a segment of demand.
05
Croatia's market struggles to offer competitive returns on investment compared to Spain, Greece, Cyprus, Turkey, or Dubai, making it less attractive to foreign buyers. When setting local policies, a country must always measure its appeal against the global alternatives for capital.
06
Geopolitical shifts and a sense of security are drawing Israeli buyers to Croatia, even as other European countries become less welcoming. For some investors, the perception of safety and acceptance can outweigh purely financial returns when choosing where to deploy capital.
07
The economic downturns in Germany and Austria, traditionally Croatia's largest foreign buyer markets, are directly translating into fewer property transactions. A country's real estate volume often reflects the economic health of its primary international customer base.
08
Gorski Kotar is seeing a surge in demand for both holiday homes and apartments, driven by its cooler climate, natural surroundings, and a mere 40-minute drive to the coast. Buyers are increasingly valuing locations that offer a complementary experience to traditional coastal tourism, blurring seasonal boundaries.
09
Plitvice Lakes is identified as Croatia's most potent area for tourism, rivaling even Dubrovnik for hotel investment, despite being inland. Serious tourism capital looks beyond the coastline for natural attractions with established pulling power.
10
The APN state housing subsidies, while a clear win for individual buyers who secured them, were ultimately confirmed by the minister to have had a negative overall market effect. Policies designed to assist specific buyer groups can distort the broader market, creating winners at the individual level but systemic challenges.