Peščenica-Žitnjak has long lived in the shadow of Zagreb's more popular districts, but in recent years this eastern part of the city has been experiencing a strong revival on the real estate market. The combination of more affordable prices, good transport links and an increasingly noticeable development momentum makes this district an increasingly interesting choice, both for buyers looking for value for money and for investors who recognize growth potential. Hermes nekretnine follows this market closely, as opportunities here shift from month to month.
The Peščenica-Žitnjak district is one of the largest in Zagreb, covering 35.3 square kilometers with a population of over 53,000. It consists of two clearly distinct areas: the urban, residential Peščenica in the northwest, and Žitnjak, a large industrial and logistics zone stretching southeast all the way to the settlement of Ivanja Reka.
The urban part of the district, known simply as Peščenica, includes several recognizable neighborhoods such as Folnegovićevo naselje, Sigečica, Ferenščica, Volovčica and Borovje. The housing stock here mostly dates from the 1970s and 1980s, similar to other older Zagreb districts, with numerous low-rise buildings without elevators. Despite the age of the housing stock, well-maintained buildings and affordable prices make Peščenica an interesting option for buyers who do not want to pay a city-center premium but still want to keep good transport links.
It is worth noting that micro-locations such as Kajzerica and Trnjanska Savica, although sometimes mentioned colloquially in the same breath as this part of the city, administratively belong to neighboring districts, Novi Zagreb and Trnje. The real Peščenica borders Trnje to the west right along Heinzelova Street, and to the north it approaches Lower Town and Maksimir.
Žitnjak, once known as an agricultural area on the edge of the city, is today an important business and logistics zone with business centers such as the one on Slavonska avenija. Within the boundaries of this city district is also Ivanja Reka, a settlement that is at the same time a key transport hub: this is where the A3 and A4 highways meet, giving residents of this part of the city an exceptionally fast route north toward the Hungarian border and the wider region.
For buyers for whom the ability to quickly escape the city on weekends or frequent business travel by car matters, this transport advantage is hard to match anywhere else in Zagreb. Slavonska avenija, which borders the district to the north, further eases the daily commute toward the center and other parts of the city.
Despite its more peripheral position relative to the center, Peščenica-Žitnjak is well connected by the tram network. Lines 2 and 3 run through Peščenica, Sigečica and Ferenščica all the way to the industrial zones in the east of the city, while line 13 connects Kvaternikov trg with Žitnjak. This network gives residents daily access to the city center without needing a car, despite this being one of the more distant districts from Trg bana Jelačića.
According to available market data from mid-2026, asking prices for apartments in Peščenica-Žitnjak rose by almost twenty percent year-on-year, well above the average price growth in the rest of the city. This surge in interest is not accidental and reflects growing buyer awareness of the value this district offers relative to price.
Despite this growth, Peščenica-Žitnjak remains one of the more affordable parts of the city compared to the center, Trešnjevka or Maksimir, especially for smaller apartments in older neighborhoods such as Folnegovićevo. Because of the smaller number of active listings compared to large, more densely populated districts, we recommend an individual assessment of each specific property to every buyer, since a generalized price per square meter here more easily deviates from the real state of an individual listing.
Peščenica-Žitnjak naturally attracts several different buyer profiles. Those looking for a more affordable price while keeping transport links to the center find value here that is increasingly hard to find in the more western and northern parts of the city. Workers employed in the business and logistics zones of Žitnjak naturally look for housing near their workplace, which creates stable, local demand for renting smaller apartments.
Investors also recognize an opportunity in this combination of rising prices and still-affordable market entry. Proximity to the business zone means constant rental demand, while the highway connection toward Ivanja Reka also attracts buyers for whom a fast link to the rest of Croatia and the region matters.
In the earthquake of March 22, 2020, Peščenica-Žitnjak recorded several hundred building inspection requests, considerably fewer than the inner city center, but enough to recommend caution when buying an older property. The most damage was sustained by older masonry buildings typical of the older part of Peščenica, while newer buildings constructed to modern standards came through with minimal or no damage.
What makes this district especially interesting for the future is a shift in perception taking place at the level of the whole city. Zagreb's new general urban development plan no longer views Peščenica and Žitnjak solely as an industrial and infrastructural part of the city, but recognizes the potential for developing parks, public amenities and a higher quality of urban life. Part of the existing industrial land is gradually being converted into green and public zones, a strong signal for the future value of properties in this part of the city.
Proximity to Žitnjak as a business and logistics zone creates constant demand for commercial spaces of various purposes, from warehouse and production facilities to smaller office units for companies working with partners in this zone. Business centers such as the one on Slavonska avenija offer modern infrastructure combined with excellent connections to the ring road and the city center, making them attractive to companies in the logistics, manufacturing and distribution sectors.
For owners of commercial spaces in this part of the city, the key advantage is precisely this transport accessibility, the combination of proximity to the highway via Ivanja Reka and tram connections to the city center, which few other business districts in Zagreb can offer to the same extent.
As in much of Zagreb's older housing stock, many buildings in Peščenica were built before the introduction of modern energy efficiency standards. Rising demand for energy-certified properties, visible across the whole of Croatia, is increasingly affecting this district too, where renovated buildings with a better energy rating command a noticeably higher price than comparable, unrenovated buildings.
Given European obligations requiring residential buildings to reach a better energy rating by the end of this decade, we recommend that buyers of older apartments in Peščenica check the existing energy certificate and any planned renovations before making a final decision, as these factors increasingly affect the long-term value of a property.
Whether you are looking for an affordable apartment with good transport links, commercial space near the Žitnjak logistics zone, or an investment with growth potential thanks to planned urban development, Hermes nekretnine knows the specifics of Peščenica-Žitnjak and can help you recognize an opportunity before the wider market catches on.
Contact us for a free valuation of your property in Peščenica-Žitnjak or for help finding a property that fits your needs, whether you are buying, selling or renting.
A district that is changing faster than its image deserves an agency that follows that change first-hand. That is exactly what we offer clients interested in Peščenica-Žitnjak, local knowledge that tells a real opportunity apart from an overpriced listing, before the wider market catches on.
See our overview of all Zagreb districts on the Real Estate by Location page, or explore the neighboring districts Trnje and Maksimir. If you are planning to buy or sell a property, also check out our Guide to Buying Real Estate.
Peščenica and Žitnjak offer more affordable apartments, houses on larger plots in the eastern part of the city and the largest supply of warehouse, production and commercial spaces in the economic zones. Find the city-wide overviews by property type here:
Explore the neighbouring districts as well: Donja Dubrava and Sesvete.