Croatia Property Buyer’s Guide

Speculative property investment in Croatia has begun in earnest as this emerging real estate market moves towards EU acceptance.  The Republic of Croatia is a former Yugoslav republic; it achieved Candidate Status for EU Membership in 2004 and open accession talks began in 2005 between the EU and Croatia in a bid to bring the country within the European Union fold by 2010.  Real estate buyers are seeking to cash in on the world’s growing confidence in the country.

Since talks have begun it has become clear to the wider world that the Croatian government are determined to do everything within their power to meet the tough criteria for EU membership and this has boosted the country’s profile and appeal to overseas investors.

For property buyer’s interested in learning more about the opportunities offered in Croatia, here’s our country guide: -

With almost 6,000 km of largely untouched coastline bordering the Adriatic Sea, Croatia is a country of stunning natural diversity and rugged beauty.  You have mountains, plains, forests, lakes and seaside areas to explore in a country that is as undeveloped as it is beautiful - and the beauty of the country has a lot to do with its fledgling but burgeoning tourist market which has boosted the country’s economy quite significantly in recent years.

Until 1991 when Croatia declared independence it formed part of the federal independent communist state of Yugoslavia and it wasn’t until 1998 that the country finally managed to free itself from communist dominance, war and violence.  With UN intervention and ongoing support and supervision the country finally became independent, stable and secure in 1998 and since then it has rebuilt its economy so successfully that it is now poised on the brink of full EU membership - quite a notable feat in such a short time.

Since 1998 the parliamentary democracy of Croatia has gone from political strength to economic strength and Croatia is heralded as an Eastern European success story.  When the Croatian government began the implementation of the EU Stabilisation and Association Agreement in 2005, foreign investors saw this as the final sign they needed pointing to the future long term economic success of the country, and since February 2005 foreign direct investment into Croatia has begun flowing freely.

Investors in many sectors are aware that there is significant long term investment potential in Croatia as it grows in attraction for large overseas and international trading companies.  A number of these international companies have already begun taking advantage of the liberalised opportunities available in Croatia and the cheaper and well educated local labour force.  They have moved production plants, service centres and operations to the country already and this has boosted employment, raised personal spending power and naturally added welcome inflation to the economy. 

There is still a long way to go in Croatia though as unemployment remains high and some politicians and sectors of society are resistant to change.  With the push towards EU entry however it’s expected that slowly but surely the ongoing issues will be resolved and the country will continue to offer more and more in the way of investment potential and solid returns to overseas individual and corporate investors in all market sectors including real estate.

In the property sector speculative investment is currently being made particularly along the coastal areas and in greenfield areas where the opportunity to create fantastic residential and holiday property units is massive.  As stated earlier the tourist market in Croatia is beginning to boom and as a result of this there is demand for quality short term rental accommodation and also for villas and town houses in the more desirable parts of the country.  Second home buyers are also being attracted to Croatia by all it has to offer in terms of the country’s beauty, the low land and housing costs and the incredibly affordable cost of living. 

International property developers are working on the creation of various projects to suit the tourist market and foreign property investors are being attracted to the potential rental yields already on offer and by the projected long term returns on capital investment made in property in Croatia.

Europe:- Croatia Property Reports
Complete listing of all current property reports for region: Europe:- Croatia

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