Why Invest in Property in Croatia Now?

There are many so called ‘emerging markets’ vying for property investor attention - from Brazil to Vietnam - and because it’s a buyer’s market pretty much globally, the onus really is on you to do plenty of due diligence to find out which nations do actually live up to their hype...because you could buy in Romania only to discover a better bargain in Morocco and then only have yourself to blame!

If you’re overwhelmed by the choice of similarly priced locations for potential investment at the current time why not consider Croatia?  In this article we’ll look at reasons why to invest in Croatia that might very well encourage you to look more closely at this particular European market...we’re not saying it’s definitely the best of the bunch, but it does present an attractive prospect or two for would-be investors.

The major point in Croatia’s favour that you’ll be hearing so much more about in the coming months is that it is pretty much guaranteed EU entry in 2010. 

The president of the EU’s executive agency stated earlier this month that the European Commission in Brussels: “will present an indicative timetable for the technical conclusion of the negotiations in 2009, provided a number of conditions are met by Croatia.” Which is the closest anyone has ever got to giving a firm timetable for Croatia’s accession.  This statement has been accepted by the wider world as meaning that Croatia will become the 28th member of the European Union in 2010.

Pre-EU entry, buyers are going to be able to bag property related bargains because it is post entry that the real economic transformation of the nation’s fortunes is predicted to occur.  Post entry Croatia will be able to trade more competitively and directly with the rest of Europe making it a more attractive nation to enter for international businesses looking for a hub in the region for example.  What’s more, those businesses already in operation in Croatia will be able to expand possibly, and there are predications that there will be a much more affluent economy across the country as a whole.

Post entry Croatia can apply for funding from the EU, it can apply to join the euro zone and it can lock in to ECB interest rates.  Additionally entry is seen as a way for greater economic expansion which should in theory be passed on to Croatian citizens making them more affluent and in a better position to acquire property in Croatia themselves.

So, getting in now ahead of EU entry could offer an investor the chance to buy in ahead of an increase in demand and affluence and therefore, the chance to buy in ahead of price gains and rental yield expansion.

Other reasons why now may be a good time to buy Croatian property include the fact Iran has stated that it is willing to supply gas to Europe via Croatia.  Sure, the mention of Iran isn’t going to get property investors particularly excited – but the thought of Croatia being a key hub for the supply of a valuable natural resource to the wealthy nations in Europe such as Austria and Switzerland should make people sit up and take notice.  If this proposed business partnering goes ahead, Croatia could become a very wealthy nation off the back of it.

Other indicators that Croatia’s fortunes are rising and that its citizens are benefiting is the fact that leading shopping centre developer Sonae Sierra sees potential in Croatia for the creation of new malls.  This indicates that the citizens of the nation are getting richer and when this happens it creates a platform for both expanding real estate prices and greater affordability so that locals can afford to buy stock.  Good news for investors seeking a viable exit strategy then.

Also positively in Croatia’s property market’s favour is the fact that tourism in the nation is developing rapidly and supplying another arm for the economy’s expansion.  The nation moved up from its last year’s position significantly in the recent World Economic Forum’s survey relating to competitiveness of tourism and travel in nations around the world.  Added to this is the fact that the European Bank for Reconstruction and Development is giving Croatia’s tourism industry a direct boost in the form of an equity investment worth EUR 24 million.  It has already provided EUR 1.8 billion for the financial services sector and for infrastructure development in the nation and it has helped the nation secure an additional EUR 5 billion in foreign direct investment.  This proves just how much international faith there is in the emergence of Croatia as a competitive and attractive nation.

If you have similar faith, now could very well be the right time to buy property in Croatia.

Special Reports: Property News for Croatia

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

Croatia Property Investment Overview
Croatia is re-emerging as a tourism hotspot and represents an excellent property investment opportunity for overseas real estate investors.