Published on 28 October 2005 at 01:18 pm
Filed under: Europe:- Croatia Property Guides » Croatia Property Investment Overview
Croatia represents an excellent opportunity for real estate investors with specific room for growth and profit in the Croatian tourist market as well as the commercial property sector and the local and international emerging residential real estate market.
Since Croatia achieved independence in 1991 it has joined the Partnership for Peace Program with NATO, the World Trade Organisation, the European Free Trade Association and is on target for EU accession by 2010 which more than proves the commitment of the Croatian government to the development and expansion of Croatia and which should give a property investor confidence in the country.
The majority of property investor interest is currently targeting the tourism sector in Croatia and it’s not hard to see why.
Before the country’s recent troubles began Croatia was a magnet for tourists and because of the country’s beauty, diversity, great climate and accessibility, its tourist industry is once again beginning to boom now that Croatia is politically and economically stable.
Growth figures for the tourist market in Croatia for the next decade are set to average 6.9% annually which is over 50% more growth than the average predicted increases for the rest of the world. Therefore real estate buyers are aware that the potential from the commercial and residential property sectors in the major tourist hotspots is intense.
Tourism is spread out across Croatia with equal numbers of visitors exploring the coastal region and islands of Croatia as well as the stunning historical and cultural side of the country, therefore opportunity for the investor can be found along Croatia’s 5,835 km of coastline as well as in the cities of Dubrovnik and Zagreb for example.
The Croatian government have already relinquished significant control over the tourism industry and as a result private investment is increasing. Overseas investors who commit to Croatia enjoy the same rights and protection as local investors and as a result of this fact foreign direct investment is flowing unhindered.
From a commercial property investment opportunity angle, an investor could tap into any one of a number of projects to build superior hotel and resort accommodation, or they could work privately on the development of villas and apartments for letting or sale to the tourist or second home market.
As overseas interest in Croatia increases so the demand for second homes is increasing along the Adriatic coast therefore an investor can also target the holiday home, second home and retirement home buyers from abroad. Finally as the intrinsic wealth of the country grows through investment and economic improvement, so domestic buying power increases; over the short term this equates to higher rental rates chargeable and over the longer term this will result in an investor having more domestic buyers interested in resale property from which an investor is seeking to release equity.
One final note, mortgages have recently become available in Croatia for overseas buyers and investors which makes property in Croatia even more accessible for more people. In turn this will increase the amount of money entering the real estate sector and boosting the long term prospects for the property market and the wider Croatian economy.
Europe:- Croatia Property Reports
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