Croatia: Investment Potential

Croatia: Investment Potential

Property investment in Croatia has received an enormous boost in anticipation of its imminent EU entry in 2009. The country has a thriving tourist industry and there are regular low-cost flights to the most popular coastal areas such as the Dalmatian Coast and Istria. With property prices affordable and convenient low-cost access, the scene is set for rising property prices, making property investment in Croatia an attractive proposition.

Great Investment Potential

Property investment in Croatia offers great diversity, particularly on the Dalmatian Coast and the perennially popular cities of Split and Dubrovnik, which have year-round letting potential. Several golf courses are being built in the area and transport links are good, making buy-to-let investment property a popular choice for investors. The Guardian newspaper reported that prices in coastal areas of Croatia have increased at around 20% annually over the past five years. Property prices in Croatia still remain relatively attractive however, when compared with other western European locations.

Croatia Economy

The Croatia government introduced a series of economic and structural reforms in the late ‘90s, which have gradually strengthened the economy making it a healthy prospect for the Croatia property investor. The tourist industry is a major contributor to the economy with around 8 million visitors each year.

Croatia Tourism

Property investors appreciate that Croatia is perfectly placed for tourism with more than 600 million people within three hours flying distance, so demand for property is growing and pushing prices up. Tourism is currently booming in Croatia, not just in the coastal resorts but also in the cities of Dubrovnik and Zagreb, the capital, all of which makes Croatia a strong investment destination, particularly in terms of rental yields.