Croatia Property Market Booming

As Croatia works hard to position itself favourably for EU and NATO entry, so the economic situation in the country is changing for the better and Croatia’s property market is booming as a direct result. 

Unemployment levels in Croatia are at a ten year low, the government is continuing to take more of a back seat role in economic affairs, private capital and foreign direct investment is therefore freer flowing and as a result business openings and employment opportunities in Croatia are flourishing.  Furthermore, now that the Urbanistic Plan has been ratified, property developers are beginning to broaden the appeal of Croatia to embrace an ever wealthier international property investor clientele.

The long drawn out creation of the Urbanistic Plan resulted in a total stagnation in the off plan property market and property development sector in Croatia until recently when finally the government was able to identify which parts of the country can be used for tourism or commercial purposes and which areas of land should be set aside for residential development.

The passing of the Plan and the acceptance of its terms has now resulted in a frenzy of property investment activity in locations such as Krk, Ciovo and Korcula islands, Split and Dubrovnik for example - but in terms of immediate international property buyer activity, Istria is possibly the hottest destination currently.

Those who are buying run down rural, renovation projects such as stone houses, farm cottages and even impressive manor houses are citing Istria as the new Tuscany.  And indeed the area shares a lot in common with the undiscovered Tuscany of old…which is unsurprising as it neighbours Italy.  Property prices are currently affordable just like they were in Tuscany before the appeal of the location became universal - but just as in Tuscany, as the supply of suitable renovation treats runs out in Croatia so the prices of property for sale in Istria are rising.

This has resulted in a division of sentiment from the local population.  On the one hand there is resentment that a large number of foreign residents have moved into Istria’s countryside, towns and villages and pushed up prices to beyond the reach of many local citizens – and then on the other hand the majority of properties currently being bought in Istria are unattractive to the local population who hate the stone houses of old and they are being sold at hugely inflated prices generating the lucky few a substantial nest egg from a foreign buyer.

This slight undertone of dissatisfaction is normal in any area in any country that witnesses a sudden influx of foreigners especially when they come with large sums of money to buy a home and make their mark on an area of land that had remained untouched for generations.  It’s unlikely to cause significant problems as long as buyers, investors, developers and planners remain acutely aware of the natural environment in Croatia and preserve the sustainability of everything from water to free beach access.  The Croatian authorities have already proved that they are serious about preserving the appeal of their nation therefore it bodes well for the future preservation of Croatia.

In conclusion: it’s of no surprise to us that Croatia property is booming as an economic sector because there is no denying the appeal of the nation – it is stunningly beautiful, relatively affordable compared to Spain and Italy, increasingly accessible, gaining in economic stability and it has a favourable climate.  Therefore from a property investor’s point of view – whether they are looking to buy into a five star hotel resort, to purchase an apartment in Dubrovnik to let out or to buy a family villa that they can one day resell to fund their pension – Croatia has long term appeal, sustainable potential and is becoming one of the most stable and impressive emerging property markets to buy into.  We like Croatia!

Special Reports: Property News for Croatia

Croatia Property Buyer’s Guide
Why Croatia's emerging investment property market is growing in attraction for international real estate buyers.

Croatia Investment Property Buying Process
Property investors interested in Croatia will be pleased to learn that the property purchase process is relatively straightforward

Croatia Property Investment Overview
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