Real Estate in Lower Town
Apartments, commercial spaces and offices in the business and cultural heart of Zagreb.
Lower Town is the true heart of Zagreb. Trg bana Jelačića, Zrinjevac, Cvjetni trg and the Main Railway Station are all located right here, and the tram lines running through the district connect it to literally every part of the city. For Hermes nekretnine, headquartered on the nearby Vlaška Street, Lower Town is a market we know inside out on a daily basis, from apartments in Art Nouveau buildings around Zrinjevac to commercial spaces along the main streets.
This city district covers just 3.02 square kilometers, yet the intensity of activity in that space far exceeds its size. According to the latest census, just over 31,000 people live in Lower Town, although that number has been steadily declining compared to the previous census. That trend is not accidental, and we will return to it later in this text, since it directly affects what buyers and investors can expect from this market.
Lower Town is not a classic residential district in the way Maksimir or Trešnjevka are. It is a business and residential center where office space, shops, hospitality venues and residential buildings are all closely interwoven, packed tightly between the Upper Town to the north and the Main Railway Station to the south. This mix of uses is exactly what makes Lower Town so attractive for commercial rental, while the residential offer here is predominantly old, bourgeois construction from the nineteenth and early twentieth centuries.
Apartments in Lower Town are typically found in buildings with high ceilings and Art Nouveau or historicist details, often without elevators and with installations awaiting renovation. New construction is a real rarity here, partly because a large part of the district is a protected urban ensemble, so any fully renovated or new apartment immediately becomes noticeably more expensive than average.
When it comes to prices, Lower Town traditionally ranks among the more expensive markets in the city, though the range is very wide and depends heavily on the condition of the building, the floor and the specific micro-location within the district. Rather than relying on a generalized price per square meter, at Hermes nekretnine we evaluate every property in Lower Town individually, since the difference between an unrenovated apartment without an elevator and a fully renovated apartment with a view of Zrinjevac can easily amount to several hundred euros per square meter.
Few parts of Zagreb offer what Lower Town has within a radius of a few hundred meters. The Green Horseshoe, also known as Lenuci's Horseshoe, is a U-shaped string of parks and squares stretching from the Main Railway Station, past Trg Nikole Šubića Zrinskog and Zrinjevac, all the way to the Botanical Garden in the west. That same horseshoe is also home to some of the country's most important cultural institutions, including the Croatian National Theatre, the Art Pavilion and the Archaeological Museum.
For a property in this part of the city, proximity to parks, theaters and museums is not just an aesthetic advantage, but a concrete argument for long-term value and appeal to tenants or guests looking for a central, culturally rich location. Trg bana Jelačića, the city's traditional center, remains the reference point against which everything in Zagreb is measured, and apartments in its immediate vicinity almost never stay on the market for long.
The transport links of Lower Town are hard to match anywhere else in Zagreb. Tram lines 2, 4, 6, 9 and 13 run through or right alongside the district, with additional night lines, and the Main Railway Station has served as a tram stop since as far back as 1892, remaining one of the city's key public transport hubs. For anyone traveling around the city daily, this is a location that saves time and removes the need for a car.
Because of this combination of centrality, cultural offerings and transport accessibility, Lower Town naturally attracts several different profiles of buyers and investors. Commercial rental makes sense almost automatically, given the concentration of institutions, offices and shops in the very heart of the city. Tourist rental also has strong potential thanks to the proximity of Trg bana Jelačića, the theater and museums, although one should factor in strong competition from other providers in the same area. Young professionals who value transport links and want to be at the epicenter of city life, as well as investors looking for a long-term stable, central location, regularly turn to Lower Town.
On the other hand, families with young children less often choose this district for permanent living. Traffic density, noise and the increasingly commercial character of the district make it less suitable for quiet family living compared to districts such as Maksimir or Trešnjevka, though this does not rule out individual cases where families deliberately choose the center for its proximity to schools and cultural amenities.
As in neighboring Upper Town, the earthquake of March 22, 2020 left a deep mark on the housing stock of Lower Town. Nearly 3,000 inspection requests were recorded in the district, placing it among the hardest-hit parts of Zagreb. The cause is not accidental: a large share of the buildings in Lower Town are more than a hundred years old, and that type of construction proved to be the most vulnerable to earthquake damage.
Post-earthquake renovation is still ongoing, and the status of a given building, whether renovation is complete, in progress or only planned, directly affects the value and marketability of every apartment within it. Before buying any property in an older building in Lower Town, we recommend a thorough check of its renovation status and any resulting liabilities, since this can significantly change the real cost of ownership in the first years after purchase.
The population of Lower Town keeps declining from census to census, while at the same time the value of properties in the district remains high or continues to rise. This seemingly contradictory combination has a simple explanation: part of the housing stock is gradually shifting toward commercial or tourist rental instead of classic, long-term family living. For investors, this represents a real opportunity, but for buyers looking for a permanent home, it means an ever-shrinking supply and growing competition for the remaining apartments suitable for family life.
Anyone looking for office or commercial space in Zagreb sooner or later ends up searching in Lower Town. The proximity of institutions, courts, banks and major corporate headquarters creates constant demand for locations that impress clients by their address alone. Ground floors of old buildings along the main streets are often converted into shops or venues, while smaller office spaces on the upper floors are sought by companies wanting a representative but compact base near the center.
For owners considering renting out commercial space in this district, it is essential to understand that demand depends heavily on ground-floor position, street-facing display windows and proximity to major pedestrian flows. A space that works perfectly for hospitality on Cvjetni trg will not necessarily be equally attractive for quiet office work, and vice versa, so matching the offer to the target tenant group is crucial for a successful and quick rental.
Living in Lower Town brings undeniable advantages of proximity to everything, but also the real challenges typical of any dense city center. Parking is limited and regulated by special paid zones, so car owners often have to factor in an additional cost or compromise on not having a dedicated parking space. Traffic noise and tourist crowds during the day are normal, especially near the main squares and tram lines.
Despite these challenges, this very intensity of activity is the main reason buyers continue to choose Lower Town. For someone who values being able to reach work, the theater, restaurants and the tram stop within a few minutes' walk, the compromises around parking and noise are simply the price worth paying for a level of centrality no other Zagreb district can offer to the same extent.
Thanks to our office right nearby, Hermes nekretnine follows developments in the Lower Town market every day, from commercial spaces along the main squares to residential buildings in the district's quieter side streets. Whether you are looking for office space in the city center, an apartment for long-term living, or a property for short-term rental investment, we know the specifics of every micro-location within Lower Town, including the condition of buildings after the earthquake and their renovation status.
Contact us for a free valuation of your property in Lower Town or for help finding a property that fits your needs, whether you are buying, selling or renting.
See our overview of all Zagreb districts on the Real Estate by Location page, or explore the neighboring districts Upper Town-Medveščak and Trnje. If you are planning to buy or sell a property, also check out our Guide to Selling an Apartment.
The Lower Town is above all a market for apartments in Art Nouveau and historicist buildings and for street units and offices, while houses and vacant land here are the exception. If you are interested in another property type, see the city-wide overviews:
Explore the neighbouring districts as well: Trešnjevka South and Črnomerec.