The rise in property prices worldwide: where have square meters become most expensive?

In recent years, the topic of rising real estate prices has not left the headlines, but while prices are also rising in Croatia, the world is going a step further.


In Croatia, there is often discussion about whether the prices of apartments and houses can even rise further, but global data show that we are part of a much wider trend. Markets around the world, especially in the Middle East, Turkey, and Southeast Europe, are recording exceptional jumps in square meter values, in some cases several times higher compared to the period five years ago. According to an analysis by Deutsche Bank, apartment prices in the centers of large cities between 2020 and 2025 have reached historic records, with some cities almost doubling or tripling the value of residential square meters.

The absolute record holders are the Middle East and Turkey

The biggest rise in real estate prices is recorded in Riyadh, the capital of Saudi Arabia, where square meters have increased by as much as 132 percent since 2020. Immediately behind it is Dubai, with a growth of 122 percent, confirming its status as a global investment center. A strong influx of foreign capital, a stable economy, and constant demand for luxury real estate make these cities magnetically attractive to investors. Third place is occupied by Istanbul, which has recorded a growth of 104 percent in the last five years, which is not surprising considering that in Turkey, buying real estate is increasingly seen as a way to protect capital from inflation, and it is also a market that attracts foreign investors with residence visa programs and favorable tax conditions.

In Europe, Greece and Switzerland lead the growth

While Western European markets have long since reached high price levels, some countries in the south and east of the continent are experiencing a real boom. Thus, Athens has proven to be one of the biggest surprises, with prices in that city rising more than 90 percent. Greece, which until recently was going through years of stagnation, is now attracting buyers with the "golden visa" program and investments in the renovation of old city centers. Zurich, the only Western European city among the leaders, with a growth of 80 percent, also made the list. Switzerland has had a limited supply and consistently high demand for years, so prices there are maintained at a high level without signs of slowing down.

Central Europe and the rest of the world are following the same trend

In Central Europe, the largest growth was recorded in Warsaw, where prices jumped by 73 percent. Followed by Prague (58 percent), Moscow (57 percent) and Abu Dhabi (64 percent), while in Mexico City, prices increased by almost 60 percent in the same period. The common denominator for all these cities is a dynamic market, high inflation, and a strong influx of capital – either through tourism, investment, or migration of the population towards urban centers. On the other hand, Western European cities are growing more slowly because their prices have already reached their maximum, and regulations often limit further market growth.

Where is Croatia in this story?

In the European context, Croatia is among the countries with pronounced growth in real estate prices. Although the increases here are milder compared to Turkey or the United Arab Emirates, the domestic market shows stable and continuous growth. The differences between Zagreb and the coast are particularly pronounced, where luxury projects, new construction, and increased demand from foreign buyers raise the averages year after year.
For investors, this means that the Croatian market is still in a growth phase, but with a more moderate pace that offers stability and security of investment, without the extreme oscillations that follow some foreign markets.

Global real estate price growth changes the investment perspective

The global real estate market clearly shows that the demand for quality housing does not stop, regardless of inflation, interest rates or geopolitical circumstances. Prices are rising where there is security, a stable economy, and investment in infrastructure, and these are precisely the factors that have made Croatia an increasingly interesting destination for investment in recent years.
If you are considering an investment in real estate, whether for housing, long-term rent or as a form of capital protection, feel free to contact us. Our team of experts will help you find the right opportunity, whether in Zagreb, Istria, Dalmatia or on the Adriatic islands.

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