The main objective of this document is to present the situation on the Croatian capital and real estate makret through the investment aspect. Each investment brings a certain risk to its investor which can be reduced by creating a portfolio. Creating an investment portfolio is a better option than investing in a particular stock and/or real estate. The capital market was analyzed in accordance with the movement of stock prices, on the CROBEX index from Zagreb Stock Exchange, in order to create an optimal portfolio for a potential investor. Also, in order to show a comparison of investments in different markets, the real estate market was analyzed where the movement of average prices per square meter of all types of real estate actually represented the movement of stock prices. By a comparative analysis of both markets an optimal portfolio was created and located on the efficient frontier. The expected rate of return that can be achived by assuming certian levels of risk is presented by the efficient frontier. Given that different levels of risk achieve equal rates of return, the autor of this document suggested investing in the real estate portfolio in the observed period.