The financial crisis, constant problems with EU entry, all kinds of different reports by foreign media… it is hard for an ordinary person to catch it all. You might star wondering what is exactly happening with Croatia and it’s property market? Let us give you a brief overview.
The Croatian property market exploded a couple of years ago, somewhere around year 200 after the country started recovering from a devastating war and years of political isolation, and later as people expected EU membership to be just around the corner. Fantastic climate, great beaches and landscapes also made the country a great destination for foreign buyers and investors, as well as travelers. Croatian real estate prices were among the fastest growing in the world, to the point where not much room remained for further growth, which led to some other countries in the region receiving more attention for a short period of time. However, the Croatian property market is expected to experience another boom after EU membership is achieved, probably in 2010-2011.
There is also another reason which makes Croatia attractive: much of the newly built properties are high quality modern developments. Further developments will also boost the area by adding top tourist attractions and making many locations jump to the high tourism category. The advance in development was favored by many in the beginning, but soon the authorities saw what was done with the rest of the Mediterranean, which was turned into a “concrete apartment complex”, so immediate legislation was implemented to protect the landscape and the coast. Tourism plays a major part in Croatia’s economy, so the image of “Mediterranean as it once was!” is quite important to the people. Today, the building standards of real estate in Croatia are really good, with most of the developers having extensive experience in construction from Western Europe.
The Croatian government has also been determined to encourage foreign investment in the property market. The government had done a lot of things during the last couple of years to bring more property investors into the market, which includes promoting the tourism, highlighting natural beauties and culture and removing all legal obstacles to foreigners for buying real estate in Croatia, especially with the new Croatian real estate law.