Real estate market in Croatia is simply too expensive, but this statement applies only to Croatian citizens, which is correct if viewed from the standpoint of purchasing power of citizens.
Viewed only from the standpoint of property values, Croatia is not that expensive as far as we can tell, especially if one looks only at the market of houses. What does it mean to Croatians? Not much really… And it is not a consolation when the calculations include the economic situation in the country. However, it certainly means a lot to real estate agencies and investors, and ultimately could improve the economic picture of the country, which would probably do some good fix the situation for Croatian citizens as well. It is all a circle.
Not to complicate, the houses in Croatia are among the cheapest in Europe, and in the neighborhood as well. In Slovenia, they cost a lot more, and in Montenegro too, mainly thanks to a huge breakthrough that the country has had on the tourist map of Europe. When all is taken into account, it is not unrealistic to expect foreign buyers, with a dose of optimism caused by the economic recovery in their countries, will soon be able to begin their return to the Croatian property market in large numbers, especially to the traditionally popular Adriatic.
As usual, the banks were among the first to recognize this trend, and Erste Bank has already introduced housing loans for foreigners. Conditions are extremely favorable and offer various benefits, and loans are granted with a currency clause and mortgage insurance.
Good news for all who are engaged in the business with real estate in Croatia!