Foreigners Revive Croatia's Property Market

A three-bedroom apartment on the second floor of a traditional Dalmatian stone house built in 1928 in Trogir, Croatia, is on the market for about $2.1 million.Credit: Zoran Marinovic for The New York Times
A three-bedroom apartment on the second floor of a traditional Dalmatian stone house built in 1928 in Trogir, Croatia, is on the market for about $2.1 million.Credit: Zoran Marinovic for The New York Times
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Foreigners Revive Croatia's Property Market

A three-bedroom apartment on the second floor of a traditional Dalmatian stone house built in 1928 in Trogir, Croatia, is on the market for about $2.1 million.Credit: Zoran Marinovic for The New York Times
A three-bedroom apartment on the second floor of a traditional Dalmatian stone house built in 1928 in Trogir, Croatia, is on the market for about $2.1 million.Credit: Zoran Marinovic for The New York Times

This recently renovated apartment is on the second floor of a traditional Dalmatian stone house built in 1928 in the historic center of the island city of Trogir, a Unesco World Heritage site.

The 2,120-square-foot apartment has three bedrooms, three bathrooms, a 408-square-foot private roof deck with a spa and a smaller terrace; the furniture, by Croatian designers like Prostoria, is included in the asking price.

The entry hallway has original arches and Italian tile floors. Beyond the bathroom to the right of the front door is a kitchen-and-dining area with French doors that open to a terrace. The kitchen has crushed-stone countertops and Bosch and Sage appliances, as well as a traditional sink made from a single piece of stone by the owner’s grandfather, said Marko Pazanin, executive director of Croatia Sotheby’s International Realty, which has the listing.

Beyond the kitchen are a living room and a den, each of which has parquet floors of Slavonian oak and a 42-inch flat-screen television. Along the left side of the main hallway are three bedrooms with parquet floors, king-size beds and televisions. The master bedroom has a walk-in closet and an en-suite bathroom.

The apartment is in a residential building with two other apartments and a restaurant on the ground floor, in the city of Trogir, which has a little more than 13,000 residents and is near Split, the second-largest city in Croatia after Zagreb. Public parking is nearby, along with a grocery store and green market. The nearest beach is less than a mile away, in Okrug Gornji. Split is about a 40-minute drive, and an international airport is about 10 minutes away.

MARKET OVERVIEW

The global recession of 2008 hit the Croatian property market hard, with prices falling between 25 and 50 percent, brokers said, but in the past few years it has begun to recover.

While Dubrovnik continues to be the pearl of the Adriatic, the coastal areas of Split and Istria have seen moderate price growth, said Marko Ljutic, research and marketing manager of the real estate brokerage Dream Estates Croatia.

In Split, prices in the city center have gone up 20 to 30 percent in the last three years, said Tim Coulson, owner and director of the real estate brokerage First Property Croatia. “The town is unrecognizable from, say, four to five years ago,” he said.

Renovated homes in the old town center — one of the areas most favored by foreign buyers — sell for 3,500 to 5,000 euros a square meter (or about $380 to $545 a square foot), Mr. Coulson said, while unrenovated ones go for 2,500 to 3,500 euros a square meter (or about $270 to $380 a square foot).

WHO BUYS IN CROATIA

Most foreign buyers are from Western European countries, particularly those within driving distance, Mr. Ljutic said, adding that he also has clients from England, Ireland and Slovenia, as well as Bosnia.

Other brokers said they are seeing buyers from Germany, Austria, Italy, the Czech Republic, Slovakia, the Netherlands and the Scandinavian countries, as well as Ukraine, South Africa, China and Russia, although visa difficulties have made it more problematic for Russian buyers since Croatia joined the European Union in 2013.

And “though more limited in comparison to Europe, interest from North American buyers is on the rise, particularly those whose roots go back to Croatia,” said Jelena Cvjetkovic, an associate director at Savills International.

In the past, most foreign buyers were looking for second homes, but now they are primarily investors seeking properties to rent to tourists, said Peter Ellis, the owner of Croatia Property Services.

“Foreigners are increasingly recognizing Croatia as a sound investment with a decent yield, and a wonderful place to spend some time with family,” Mr. Ljutic said.

BUYING BASICS

A reciprocity rule allows foreigners to buy property in Croatia without restrictions if their home country doesn’t restrict Croatian buyers.

That means European Union residents can easily buy a home in Croatia, but United States citizens may or may not have reciprocity, depending on their state of residence, brokers said. (More than half the states in the United States have reciprocity agreements with Croatia, including New York, New Jersey and Connecticut, according to the Croatian government website.)

Buyers from places without reciprocity are required to set up a Croatian ownership company that generates income, Mr. Coulson said.

Brokers recommended hiring a lawyer in Croatia, which usually costs about 1 percent of a home’s purchase price. A title search may be done by the real estate agent, but buyers should also request that the notary do a search on the day of the contract signing, Mr. Ellis said, adding: “It’s worthwhile asking the lawyer whether there are any reasons, like local planning consent, that might impinge upon the value of the property.”

Closing costs are roughly 8 percent of a home’s purchase price, and include transfer tax, agency fees, legal fees and notary costs, brokers said. While some Croatian banks do offer mortgages to foreigners, the terms are not advantageous and most buyers instead use funds from abroad, Mr. Ljutic said.

LANGUAGES AND CURRENCY

Croatian; kuna (1 kuna = $0.16)

TAXES AND FEES

Annual property taxes on this home, if used as a residence, would be about $500, Mr. Pazanin said.

The New York Times



Saudi Real Estate Market Maintains Investment Momentum Despite War Fallout

Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)
Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)
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Saudi Real Estate Market Maintains Investment Momentum Despite War Fallout

Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)
Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)

Saudi Arabia's real estate market continues to attract investment despite geopolitical challenges weighing on economic activity worldwide, supported by new housing developments and efforts to expand residential supply.

The Ministry of Municipalities and Housing announced that more than 15,000 residential land plots had been made available through the Sakani platform across the Kingdom between the beginning of 2026 and the end of October, alongside additional projects launched by private-sector developers.

The developments underscore the sector's continued momentum and its importance to the Saudi economy.

Government initiatives and private-sector projects aim to expand housing supply and meet growing demand, reinforcing real estate's position as a key driver of economic growth and diversification.

Strong domestic demand and ongoing urban development projects continue to underpin the market's appeal, attracting investment from both Saudi and international investors.

Against a backdrop of geopolitical uncertainty and war-related disruptions to trade, supply chains, financing costs and construction expenses, the real estate sector has gained importance as an industry driven largely by domestic demand and capable of sustaining economic activity.

Private-Sector Investment

Despite mounting global economic volatility and geopolitical tensions, Saudi Arabia's real estate market continues to attract international investment, supported by clear economic policies, expanding development opportunities and strong housing demand.

Real estate developer Arada recently announced its entry into the Saudi market through a partnership with local company XTOPIA, backed by a SAR 50 billion ($13.3 billion) portfolio of land and development opportunities.

The partnership's first project is a SAR 14 billion residential development in Riyadh's Al Rimal district.

Riyadh Region Municipality, the Ministry of Municipalities and Housing, and the National Center for Privatization & PPP also recently announced the launch of the expression of interest, prequalification and proposal submission stages for a joint land investment project.

The initiative involves developing a municipal land plot in northern Riyadh through a 50-year partnership with the private sector, marking the municipality's first project under the joint investment model.

Real estate specialists described the initiative as an important step toward enabling private investors to develop property assets into sustainable projects with significant economic value.

They said the extended investment period would encourage developers to improve construction quality and services, strengthen project feasibility, diversify real estate offerings and increase supply in one of the capital's most expensive neighborhoods.

Balancing the Real Estate Market

The importance of releasing more residential land lies in achieving greater balance in the property market, a government objective outlined by Crown Prince and Prime Minister Mohammed bin Salman.

The strategy seeks to increase housing supply by making more land available, broadening the options accessible to Saudi citizens and enabling more households to move from searching for a home to building and owning one.

Increasing the availability of residential land, particularly in cities and governorates experiencing rising demand, could ease pressure on land prices over the medium term, provided that plot locations and sizes correspond to actual market needs.

The release of additional land also creates opportunities for real estate developers, contractors, engineering firms and building materials suppliers to benefit from anticipated demand for construction projects.

As a result, businesses across the real estate and construction supply chain could see stronger activity despite the impact of the geopolitical crisis on other economic sectors in the region.

The initiative also expands housing choices, supports efforts to increase homeownership rates and improve quality of life, and encourages urban development beyond major metropolitan centers.

Lowering Prices

Real estate developer Ahmed Omar Basoudan believes the main challenge facing Saudi Arabia's property market in the coming period will not simply be increasing the number of land plots and housing units available.

Rather, he said, the priority must be ensuring that homes reach buyers at prices they can afford, while providing adequate infrastructure and services and keeping development and construction costs under control.

Speaking to Asharq Al-Awsat, Basoudan explained that genuine balance in the real estate market depends on the availability of housing that meets buyers' needs in terms of price, location and quality, rather than simply increasing overall supply.

He said the release of more than 15,000 residential land plots during the first 10 months of the year, together with recently announced private-sector projects, reflected the government's continued commitment to expanding housing supply and providing more residential options.

Basoudan stressed that the latest real estate developments represent an important step toward addressing one of the market's most pressing challenges: achieving a sustainable balance between supply and demand, particularly amid the Kingdom's population growth and continued urban expansion.


Saudi Stocks Rebound 0.9%, Recouping Previous Session's Losses

An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)
An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)
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Saudi Stocks Rebound 0.9%, Recouping Previous Session's Losses

An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)
An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)

Saudi stocks closed higher on Monday, recovering some of the losses sustained in the previous session as heavyweight shares strengthened and the banking sector advanced.

The benchmark Tadawul All Share Index (TASI) rose 0.90% to close at 10,106 points, gaining 90 points. Total trading value reached approximately SAR 3.5 billion ($933 million).

The index had fallen 0.8% on Sunday amid selling pressure on heavyweight stocks.

Anaam International Holding Group, Fitaihi Holding Group and Raoom were among the session's top gainers, rising between 7% and 9% to close at SAR 11.93, SAR 2.11 and SAR 72.30, respectively.

On the losing side, Almunajem Foods led the declines, shedding 9.20% to SAR 49.94, followed by Saudi Paper Manufacturing Co., which fell 6.18% to SAR 48.88, and Alamar Foods, which dropped 4.63% to SAR 44.06.

At the sector level, banks led the gains, advancing 1.60%, supported by a 2.06% rise in Bank AlJazira shares, which closed at SAR 10.89.


Tesla to Refund Many Cybertruck Deposits as Demand Exceeds Production, Musk Says

Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
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Tesla to Refund Many Cybertruck Deposits as Demand Exceeds Production, Musk Says

Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)

Tesla will have to refund Cybertruck deposits for many customers as orders far exceed production capacity, CEO Elon Musk said, following last week's announcement that the electric vehicle maker is winding down the pickup truck's production at its Texas factory.

"We will try ‌to make ‌as many as ‌possible ⁠before shutting down the ⁠line in about 8 months, but will have to return deposits for a lot of people," the billionaire said in a post on X on Monday.

The comments ⁠come after Musk said ‌Tesla would ‌add an extra production shift to fulfill outstanding ‌Cybertruck orders before dismantling the production ‌line next year to expand output of its Cybercab robotaxi.

The production winddown is slated for mid-2027, Musk announced on ‌Friday, with the resources being redirected to the Cybercab, a vehicle ⁠central ⁠to the automaker's autonomous-driving ambitions.

Tesla began delivering the Cybertruck in late 2023, but demand has fallen far short of Musk's expectations. US sales fell 48% to 20,237 units last year, according to Kelley Blue Book, well below Musk's earlier projection that annual Cybertruck sales could reach 250,000 vehicles.