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Fully Booked Airbnb City: Croatia

Croatia is recognized worldwide for its picturesque national parks and serene beaches as it welcomes over 11 million tourists in 2021. Considered one of the most visited tourist destinations in the Mediterranean, Croatia was also renowned as the travel and leisure reader’s choice destination.

Despite the pandemic in 2020, this beautiful city in Central Europe still recorded a whopping total number of 22 million visitors. Can you imagine the tourists that have booked their respective accommodations in a span of one month? We have one word to describe it: Fully-booked!

In general, Croatia is one of the most visited destinations across the globe because of its famous attractions such as Plitvice Lakes National Park, Diocletian’s Palace, Dubrovnik Old Town, and many more.

Property investors who want to start an Airbnb with limited budget should certainly do thorough research about rules and regulations as they vary per city. For instance, hosts should know that the Airbnb rules in Florence restrict hosts to operate two rental units in the same city.

Continue reading to learn more about Airbnb’s long-term profitability in Croatia.

Is Airbnb Profitable in Croatia?

According to The Dubrovnik Times, Croatia is one of the European countries with the fastest recovering tourism sectors with a 61% volume in comparison to 2019 data. Airbtics data confirms that an average host can earn an average daily rate of €107 for a 3-bedroom apartment/condo in Croatia. 

These Airbnb metrics are necessary in order for property investors to have an outlook of potential revenue and avoid losing hard-earned money. Knowing your preferred area’s occupancy rates, average daily rates and annual revenue is important in starting an Airbnb business to achieve success.

By using an accurate short-term rental calculator, you’ll be able to confirm that Croatia is one of the best places for investment. There are indeed plenty of high-return investment opportunities in Croatia that one should not miss out on.

fully booked airbnb city croatia

Source: Airbtics Dashboard

What is the Average Occupancy Rate for Airbnb in Croatia?

An excellent Airbnb occupancy rate should be around 65% with a remarkable increase monthly. The good news is that for Croatia, the occupancy rate should not be doubted at all. Based on Airbtics, the YoY change in Croatia increases by 182.9% and has had a 100% occupancy rate in March and July 2022. Talk about profitability!

To be specific, the cities of Dubrovnik and Split are part of the Airbnb cities with the highest occupancy rates. The annual revenue in Dubrovnik is around €39,490 with an average occupancy rate of 44%, while hosts in Split can expect annual revenue of €13,718 with an average occupancy rate of 46%.

It’s interesting to know that despite the post-pandemic restrictions in various countries, the international traveler’s ratio in Croatia remains at 88%.

fully booked airbnb city croatia

Are Properties Expensive in Croatia?

The demand for real estate in Croatia is relatively high so there is also an increase in prices. According to Euro Immobilien, apartments are sold out fast before even being built and the average price of new dwellings is €1,678 per square meter.

Before purchasing an investment property, it’s important to learn about the various kinds of mortgages, ongoing and upfront costs, and other fees associated with real estate. 

In order to track the Airbnb performance of your preferred neighborhood in Croatia, it’s practical to take advantage of smart technology. By using a precise short-term rental calculator, you’ll be able to consistently monitor the demand & supply and spy on your competitors located within the area – and stand out among the rest.

how much can you make on airbnb

What are the Airbnb Rules in Croatia?

If you are worried about strict Airbnb rules in Croatia, the good news is that there are only a few things to take notice of:

  1.  It is required to get a certificate of occupancy (Uporabna dozvola) and certificate of ownership (vlasnički list) in order to operate an Airbnb in Croatia.
  2. By Croatian law, if you make money with short-term lettings, you need to register as a landlord.
  3. Obtain an energy certificate (energetski certifikat) issued by licensed inspectors for your building.
  4. It is required to apply for the hosting permit in the City Hall and wait until city inspectors come and inspect your building.

Airbnb Market in Croatia

Knowing the kinds of visitors who are booking Airbnb rentals in Croatia will help hosts like you set expectations beforehand. Based on Airbtics’ data, these are the following countries & cities of origin of domestic and international guests in Croatia.

Airbnb Market in Croatia

As seen on the graph, there are no domestic travelers who use Airbnb in Croatia. The guest’s origins in Croatia are from the countries of Germany, France, Italy, and Poland. While the top cities are Zagreb, Budapest, Berlin, Munich, and Paris.

Airbnb Market in Croatia

Top 3 Cities in Croatia for Airbnb Investment

In order to properly identify which particular area is best for investment in Croatia, here are the top 3 cities with the highest occupancy rates:

1. Split

Split is one of the highly desirable areas in Croatia that has a shortage of suitable units. The yields in this area achieve solid capital growth.

  • Average occupancy rate: 88%
  • Annual revenue: €16,991
  • A local license is not necessary to operate short-term rentals.
2. Dubrovnik

This city in Croatia has a great combination of a historical and unique experience for tourists and renters.

  • Annual revenue: €22,130
  • Average occupancy rate: 70%
  • A local license is not necessary to operate short-term rentals.
3. Central Dalmatia

Central Dalmatia is surrounded by beautiful islands and numerous castles which are mostly preferred to be booked by the vast majority of tourists.

  • Annual revenue: €23,363
  • Average occupancy rate: 76%
  • A local license is not necessary to operate short-term rentals.

Conclusion

If you are looking to invest in an Airbnb city with maximum cash-on-cash return and 100% assurance that it will bring long-term profitability, in-depth research is a stepping stone. However, the data points mentioned in this article such as Airbnb occupancy rates, annual revenue, & traveler’s ratio should be your basis for investing in an Airbnb business in Croatia.

Now that you are aware of how this Airbnb city became fully booked, don’t miss out on greater opportunities! With the help of our reliable data analytics tool, you can vastly enhance your monthly revenue, create a comparison for each neighborhood, add the appropriate amenities and so many more exciting features.

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