Croatia
The Republic of Croatia is a European country situated along the Adriatic Sea. It has a population of 4.5m and stretches from the slopes of the Alps and deep into the Pannonian Valley to the banks of the Danube and Drava rivers. Despite the tragedy of war, its undoubted charms remain largely intact and many of the tourist areas have been lovingly restored. With its sublime stretch of Adriatic coast and its Mediterranean climate Croatia has long been regarded as one of the most beautiful parts of Europe.
Why Invest in Croatia
The Attractions of Residential Property in Croatia
- Residential house prices forecast to rise 15% - 20% in 2006 and 10% - 15% in 2007.
- Croatia is a rapidly expanding holiday destination.
- In comparison with other holiday destinations Croatian residential property values aapproximately half those of comparable properties in Marbella, Spain and up to 90% cheaper than the Cote D’Azur, France.
- The expansion of low cost airlines has added to the popularity of the country.
- Dubrovnik was in the top 10 fastest growing passenger airports in 2003.
- There is currently an under supply of property in many regions of Croatia due to a rigorous planning approval process – designed to restrict uncoordinated growth in property overlooking its coastline and thereby protecting its natural beauty and heritage.
- Croatia has a climate commensurate to Nice in the South of France.
- Croatia offers some of the finest sailing in Europe.
Growth Drivers in Croatia
- Strong macro economic forecasts (see table).
- Croatia is anticipated to join the EU in 2007-9 which in turn is expected to further boost already strong levels of foreign direct investment.
- Rigorous planning constraints prohibiting new development within close proximity of the coastline is suppressing supply.
- Strong interest from holidaymakers from the UK, Ireland, Russia and Germany is creating demand for new developments.
Key risks of investing in Croatia
- Market demand largely foreign driven.
- Unemployment still higher than EU average.
- Bureaucracy is making property transactions more difficult.
- Title can be difficult to establish.
| Croatia | EU 15 Average | |
| Forecast Changein Interest rates (2006 - 2010) | -0.25% | 0.72% |
| Forecast Employment Growth (2006 - 2010) | 2.69% | 4.03% |
| Forecast Earnings Growth (2006 - 2010) | 48.12% | 18.35% |
| Forecast Inflation (2006 – 2010 av. % pa.) | 3.39% | 2.04% |
| GDP/Capita (change 2006 - 2010) | 57.74% | 35% |
Summary of why to invest in Croatia
- EU membership anticipated 2007-9.
- Rapidly expanding holiday destination.
- Beautiful coastline.
- Mediterranean climate.
- Comparatively good value.
- Improved infrastructure.
- Low cost airlines expanding accessibility.
- Market demand largely foreign driven.
- Bureaucracy can hampers transactions.
For further information about investing in property in Croatia, please contact our sales team on 020 7763 7170