Croatia » Market Report

Croatia is special not only because of its crystal clear, blue sea, but also because of the thousand years of various cultures which often overlapped. There are more than 1,500 islands and islets located along the Croatian coast which makes up for 5% of the Mediterranean. The coast line spreads from the Prevlaka Peninsula in the south to Cape Savudrija in the north.

However, Croatian real estate property prices are still favourable compared to other European and especially Mediterranean countries.

In Croatia there are many undiscovered warm places waiting to be founded. Sea coast of 5,835 km, especially 4,000 km on Croatia islands offer many chances for investing amount in something promising in near future.

Due to strong demand by foreign buyers, tourist industry growth and new big infrastructure projects, construction activity and property prices have risen all along the Adriatic coastline and in capital Zagreb average 17% in the year 2003.

Lower interest rate on loans for Croatian citizens in august 2004 speeded up the new apartment price.

In the last year, the property market in Croatia has seen a considerable increase in interest, especially from the British and Irish markets. Increasingly identified as an elite Mediterranean destination, Croatia is being recognised as a highly attractive country to visit and enjoy.

More importantly, Croatia has emerged as an attractive investment market in terms of property appreciation, with a strong market for both capital growth and rental income. Although prices have increased in a varied manner along the Croatian coast, the investment potential of this strongly emerging market is best illustrated by the fact that prices around Dubrovnik have increased by 20% to 30%.

 

Looking for property in Croatia is becoming a boom for Europeans, including British and Irish national seeking a good property investment or their own place in the sun. Every day more and more people query about and that's may be why more and more real estate agencies are opening their doors to those interested in buying a property in Croatia.

Property prices in many of the new EU member countries have seen considerable rises.The average purchase price is 150,000 Euros and there are various 'hot spots' such as Dubrovnik, Hvar and Istria. It is a rising market but when compared to equivalent properties in Spain, France and Italy they are consistently at least 30-40% cheaper.
The expected annual growth rate for the tourism market on Mediterranean is 3 % and with Croatia excelling as a country with potentially with the highest tourist arrivals, the annual growth rate goes up to 8.4.

In previous years there has been continuous growth in demand, but in the first half of 2007 a decline in the Croatian holiday homes market demand was recorded. Although Croatia is amongst the most popular tourist destinations and holds second place among the Mediterranean countries and seventh globally, both demand and property acquisition have considerable decreased.

The main areas of specific commercial interest at the moment are retail and office. This is because businesses are expanding within Croatia and considering both decentralisations for fiscal reasons and also opening secondary hubs as business expands. Additionally, with EU entry pending, additional businesses from outside Croatia are coming to the nation seeking premises. These factors are creating employment which in part has resulted in greater consumer affluence which pushes over into demand in the retail sector.

If you’re looking for a bargain with a long term potential for strong yet sustainable growth, Croatia could very well be it.

Our Forecast

International Property Brokers forecast that the Croatia is expected to become the EU member by 2009,   having a booming tourist’s industry and economy showing low inflation and steady growth provides a charm for property investment in Croatia. The Croatian government is now ready to lift the existing restrictions on EU citizens buying property in Croatia on 1st February 2009, allowing the EU nationals to own property by their name in coming years.