Croatia - Property market overview
Key points to note:
Croatia property prices: Property prices have been resilient in Istria, supported by a lack
of supply for quality villas both for purchase and rental.
Hence Villa prices are forecast to grow at greater than the market
average. Istria is seen as being one of the key Croatia
regions with it's popularity as a tourist and second home
base growing. We are seeing asking prices in Istria, for
quality villas stabilising above 2,000 Euro per square foot.
Prices are forecast to improve up to and possibly beyond the EU accession in 2012. Indicators
supporting this growth are:
- Rental yields improving : today yields
are averaging 9% and are forecast to grow to 10-12% as the tourist
- Croatia is the hot travel destination:
In 2006 Croatia was
voted the top European choice of travel professionals worldwide.
Croatia scored top in the most exciting country and best value
for money. Croatia
continues to get an excellent press write up and Istria is
highlighted for it's countryside, activities, yachting
basin and excellent food.
- Property price equalization with Italy : Prices
for like for like Villas in Istria are still about a third of Italian prices and equalization over time is
forecast by many industry observers, including FPD Savills.
Plenty of room for appreciation!
- Improved airline access: UK budget airline operators
have opened up new routes, including
direct routes into Istria. This is important both for
making second homes attractive to Brits (although a large part
of Europe can drive comfortably to Istria and it is a favoured
second home destination for the Germans and Scandinavians) but also helps to
increase demand for rental.
- EU talks positive: Croatia has resolved its border disputes and is in the final stages of detailed entry negotiations. Full membership is expected in 2012.
- Improved Liquidity: Mortgages for Croatia properties are expected to become available in line with the EU accession. The
development of a functioning mortgage market should have a major
impact, it will open the market up to a
wider segment of buyers and hence should stimulate price
increases, particularly in the villa segment.
- Growth and sound economy: 5% annual GDP growth
(currently) and a mixed economy (30% industry, 60% services
and 10% agriculture).
- Stable currency: the Kuna closely follows the Euro
and major transactions (including property) are often
negotiated in Euros.
- Freehold rights: No restriction on foreign
ownership; freehold rights are available.
Within Croatia our top pick
region is Istria:
Proximity to Europe; less
than 30K from the Italian border
Easy access; by road, air
Choice or airports:
including Trieste ( for UK budget carriers)
The New Tuscany: Stunning
landscape and historic villages
Istria is taking a very considered approach to the development
Culture and Sports:
Istria is a centre for culture and sport, attracting holiday
makers wit it's many and varied activiites.
Focus for yachting: Many of
the towns along the Istria coast have harbours for Yachts. The
clear seas and many islands are increasingly attracting the
Great food and wine !!!
Istria continues to be featured in the food and wine press.
comments: Croatia has weathered the downturn, particularly in the villa sector. It is seen by some as the “new Italy”.
is on track to join the EU and its foreign policies are all tailored towards
achieving this as smoothly as possible. Croatia continues to receive
favourable reports from highly reputable organizations which included the
Financial Times “Croatia - The Mediterranean’s latest property hotspot." Indeed, there continues to be an influx of foreign travelers to Croatia seeking the sun drenched beaches,
lush pine forest and extensive vine yards.
real potential for capital appreciation and we
predict a strong rebound driven by improving global economics, EU membership, continued strong growth in tourism, a shortage of supply and the advent of a mortgage market.
Istria region of Croatia is our pick for 2010.
information - Croatia
It is our goal to develop a range of
investment opportunities for people who are looking at buying investment
property. Please find below information that we think is useful property
investment advice. The information ranges from web links to interesting web
sites, news articles and property reports that we have found. We do not
necessarily agree with all the comments made.
detailed information on Istria take a look at
Croatia is economically sound and EU accession is being
sought. The economy is a mixed one, with 30 per cent attributable to industry,
7.9 per cent to agriculture and 62.1 per cent to services, including tourism.
The growth in GDP is 4.3 per cent per annum. The currency, the kuna, was
formerly pegged to the deutschmark and now shadows the euro. It has been stable
for several years.
Before the dissolution of Yugoslavia, Croatia, after
Slovenia, was the most prosperous and industrialized area, with a per capita
output perhaps one-third above the Yugoslav average. The economy emerged from
its mild recession in 2000 with tourism the main factor.
Croatia is forecast be a new "European" rival of Italy,
Portugal and Greece in the Mediterranean coast
Now, Croatia is on track to join the European Union and its
foreign and economic policies are all tailored to achieving this as smoothly as
possible. Many people, Croatians and foreigners, are investing in property, fully expecting the same rises in property values that were seen in other
EU candidate state prior to their accession
Of the varied parts of Croatia it is
Istria that has attracted attention as the new Tuscany.
Istria is situated in the north of Croatia
and is the largest peninsula in the Adriatic region. The spectacular,
well-intended shoreline has numerous bays, islands, coves and pebble and rocky
beaches. Summer sea temperatures range from 23-27 Celsius, generously warmed by
a sunny Mediterranean climate.
Until 1945 Istria was part of Italy. Indeed for some 500 years it was the summer
playground of the Venetian republic. The city of Venice, just a 90 minute boat
ride away , is clearly visible on a sunny day.
Istria retains a distinct Italian flavour.
Architectural reminders including piazzas and Tuscany-style farmhouses are
everywhere. Italian aromas fill the air with restaurants serving gnocchi,
truffles and classic northern Italian fare. Boasting over 600 restaurants.
Istria has a unique cuisine enlivened by many influences. Local wines,
especially Malvasia and a Momjan Muscat, compare with a high quality French or
The heritage of hospitality and tourism
can be traced back in the 19 century. The time of the Austro-Hungarian Monarchy
saw the boom of tourism and the growth of numerous facilities along the
coastline: hotels, boarding houses, restaurants, beaches and spa baths. Towns
like Portorož, Umag, Poreč, Rovinj, Pula and the Brijuni Islands on the west and
the town of Rabac, Lovran and Opatija, started growing into real tourist
offers a good investment opportunity. Prices are rising steadily and rises of 20
per cent per annum are considered to be reasonable forcasts.
World financial institutions are predicting an increase in Croatian real estate
value of 200 per cent - 300 per cent in next few years.
prices in Istria - where property is still affordable - are rising steadily at
20% per annum
Croatian government started to restrict further development alongside the coast
,in order to protect the environment and avoid “concrete holiday destinations” ,
the properties already built and the plots of land that already have planning
permission are increasing in value.
in Croatia is still much cheaper in comparison to other property hot spots in
the Mediterranean, like Spain for example.
prices differ depending on the area of Croatia you decide to buy. Dubrovnik,
which has received a lot of good press in the last years, has already seen
significant increases in value.
Southern Istria, towns like Pula, Medulin, Premantura and Pjescana Uvala prices
are still lower and offer potential for capital appreciation.