Zagreb

Zagreb

Efforts by Croatian tourism authorities to curb the rapid growth of short-term private accommodation are beginning to show results nationwide, but Zagreb continues to follow a slightly different path.

After years of strong growth, with private accommodation beds increasing by between 25,000 and 30,000 annually since 2018, the national trend reversed last year, daily Večernji list reported.

Croatia now has around 10,000 fewer beds in private accommodation than a year ago. At the same time, approximately 3,650 taxpayers have partially or fully shifted from short-term tourist rentals to long-term leasing, moving away from tourists towards traditional tenants.

However, data from the eVisitor electronic tourism monitoring system shows that Zagreb has not yet reflected this wider slowdown.

According to eVisitor, 10,539 beds are currently registered in private accommodation in the capital, which is 499 more than a year ago.

The number of registered private landlords has also increased, rising from 2,769 to 2,879.

Despite these figures, a parallel process is underway. While some property owners still see tourism as a profitable additional income and are entering the short-term rental market, others are choosing to exit.

Rising costs, particularly higher lump-sum taxes per bed, are proving decisive.

One Zagreb landlord, who recently deregistered his apartment from short-term rental platforms, said that the increase in the annual flat-rate tax, from €40 to €200 per bed, significantly changed the financial equation.

For his four-bed apartment, the annual tax rose from €160 to €800. Once all other costs were included, utilities, maintenance, supplies and fees, average monthly profit dropped to around €200, Večernji list said.

In contrast, similar apartments in the same neighbourhood now command €800 to €900 per month on the long-term rental market, with far less daily involvement.

Seasonal demand further affected profitability, with strong occupancy limited to summer and autumn, while the first months of the year and even Advent failed to meet expectations.

City officials confirm that an increasing number of landlords are making similar decisions. This shift aligns with one of the key goals of Croatia’s tourism reform: reducing pressure from apartmentisation while increasing housing availability for residents through long-term rentals.

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