Prices rise as EU experience instabilities
Why prices grow...?
Since Brexit - European Union slides into multiple problems
Brexit was only the first major step. Only naive would belive that after Brexit everything will continue to function just as usual. European Central Bank in Frankfurt is ordering endless printing of useless Euro. For years - interest rates on long term loans are close to zero. Right now, it is obvious that EU experiences huge rise in main comodities prices - just to mention incredible rise of energy prices. Food, clothes, services - everything is getting just more expensive day by day. The German government is talking about inflation rate of ca 3% - although even illiterate can see prices growth in much higher numbers, more likely 20-30%.
You can read latest German observations here: Germany experiences huge inflation
So, individuals who have some savings aside - see that Euro could soon loose a lot on its value. Therefore we see a situation very similar to - a panic. People are trying to get rid of Euro - to save the value they own at present.
Many think that investment into real estate at attractive Adriatic Sea - will save the value of their savings. So, the last year and right now - we see a huge rise in demand for real estate at the Adriatic coast.
Another reason is much less unfounded, but investors are using it as a valid reason. It is about prices of construction materials. Yes - cement, iron, various materials - are also more expensive - some prices exploded even to 100%. But costs of construction materials are not more than 40% included in the price of finished building. So - even if those prices are really higher - that shouldn't be a reason of real estate prices rise, sometimes more than 70%.
Conclusion is - prices of real estate in Croatia are rising mostly because of reason of the reduced trust into EU and its currency - the Euro. Demand on attractive properties is rising - of course - prices are rising.
Where are limits...? Well - prices at the Adriatic Sea will probably grow until they reach levels of real estate in Monaco, as an example. What aproximately that means, you can explore here: Prices of real estate in Monaco