Could Croatia benefit from Middle East uncertainty? - Interview with Ivan Kovačić, CEO, for Jutarnji.hr

While the world focuses on the military and political consequences of the conflict in the Middle East, a less visible process may already be unfolding in the background – a shift in the direction of investment capital. Real estate markets are particularly sensitive to perceptions of security and stability, and security has been one of the key reasons why Dubai has become one of the most popular destinations for international investors in recent years. If geopolitical instability alters the perception of risk in the region, the question is no longer only what will happen to Dubai’s real estate market, but also where a portion of that capital might flow instead. In this equation, Croatia could emerge as one of the unexpected beneficiaries.

The new situation is commented on by Ivan Kovačić, a prominent Croatian entrepreneur and investor in the field of luxury real estate, known for his role in the development and professionalization of the real estate market in Croatia. He is the owner of Remington Real Estate, the exclusive affiliate of the globally prestigious Christie’s International Real Estate network in Croatia. Alongside his business activities, Kovačić also holds an important diplomatic role. He serves as the Honorary Consul of the Kingdom of Belgium in Croatia, where he actively contributes to strengthening economic, cultural, and institutional ties between the two countries. His work at the intersection of entrepreneurship and diplomacy positions him as one of the recognized figures in the field of international business cooperation and investment in the region.

Dubai has become one of the most dynamic real estate markets in the world in recent years. In 2025 alone, the city recorded more than 270,000 real estate transactions with a total value of approximately AED 917 billion, or roughly USD 250 billion (Source: Dubai Media Office / Dubai Land Department, 2025). This represents a historic record, confirming the strong growth of the market and the increasing interest of international investors. Foreign buyers account for a significant share of the market, and Dubai has positioned itself in recent years as a global hub for real estate investment.

“In such a context, Dubai has attracted not only institutional investors and global capital, but also a large number of private buyers. Among them are investors from Central and Southeastern Europe, including Croatia. In recent years, Croatian buyers have increasingly invested in apartments in Dubai, most often in new developments and off-plan projects. According to estimates from agents selling projects in Central and Southeastern Europe, Croatian buyers purchase several hundred apartments annually. The total value of these investments is estimated at more than €100 million per year.

However, the effect would not be limited only to the capital city. A portion of this capital would very likely also flow to the Adriatic coast. Even today, many investors from Zagreb purchase real estate on the Adriatic as a combination of investment and personal use. Such purchases often have a lifestyle component as well, since owners use the property for part of the year and rent it out during the remaining time.

In this context, markets such as Istria, Kvarner, and parts of Dalmatia could also feel part of this investment capital. These markets are already strongly internationalized and have a significant share of foreign buyers,” says Kovačić.

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