Buying budget property in Croatia
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Articles on Croatia
As property hotspots go, Croatia was just waiting to happen. And now it has, with the former steady trickle of property buyers who fell in love with the country after holidaying on the Adriatic coast being joined by larger numbers of British, German and other EU nationals determined to get a foothold in a place which ticks all the right investment boxes. So why is property for sale in Croatia proving so attractive to property buyers, what will £80,000 (€120,000) buy in today's rising property market? Croatia and its neighbours have long-since resolved the bitter grievances which marked the dissolution of the former Yugoslav Republic, and are instead happily focused on the task of shaping their respective social and economic destinies in a new spirit of Central European unity. Geographically, things look equally promising. Croatia possesses a remarkable 5,800 kilometres of coastline, including 4,000 kilometres surrounding a total of 1,185 offshore islands, of which only 50 or so are currently inhabited. If you feel like making it 51 then be prepared to dig deep (up to £1 million).
The west-facing mainland coast gazes across the clear waters of the Adriatic towards Italy and enjoys all the benefits of a Mediterranean climate, with lots of sunshine and mild winters.
If this isn't to your taste, however, then look inland. The further you go the more the picture changes, as a continental climate pattern begins to make its presence felt. This equates to greater seasonal variation with hotter summers and colder winters, including healthy snowfalls at higher altitudes (although the local ski market is currently less developed than in neighbouring Slovenia). The inland climate also produces startlingly beautiful landscapes, vast areas of which are free from commercial development.
Things are unlikely to change any time soon, as the vast majority of potential property buyers set their sights on the more tempting locations at key points along the fabulous coastline - which is where things get interesting. According to A Place in Dalmatia's Charles Southgate: "The Croatian market is in a state of transition from 'cheap and cheerful' to one offering a wider and better range of upmarket, leisure-orientated facilities. The market is under-pinned, and will continue to be so, by tight regulation of development along the coast - the stated aim of the government is to protect the coast and the islands from the over-development seen in other parts of the Mediterranean." Andrea Marston of Dream Property Croatia has already noted the effects of this policy on prices: "Istria is frequently described as 'Tuscany by the Sea' and is very beautiful, but it is pricier now. Last year, Ryanair began flying into Pula, the largest coastal town in Istria. It's still a great place to buy villas, but most new apartments here won't have sea-views, limiting their rental potential - and there isn't much for less than £80,000 now."
So, attractive and affordable new property releases are concentrated in a limited number of well-known coastal locations, usually close to an airport served by budget flights. But at least these obvious hotspots make it easier to find and compare what is currently on offer in the new-build marketplace.
New-build certainly doesn't suit everyone. Another very active sector of the property market centres on traditional stone-built properties, either inland or located in unspoilt coastal villages. Not surprisingly, this kind of property search can take longer and is also likely to require a degree of vision and a willingness to undertake the modernisation and upgrading required to achieve the levels of creature comforts buyers have come to expect. Fortunately, amazing low-season (1 October to 31 May) rentals enable you to search long and hard and to really get a feel for things: prices (based on two sharing) start at just £10 per person per day. Or you can rent a four-bedroom apartment from just £240 for a whole month.
If you're buying for investment combined with letting potential, then the convenience of a new, purpose-built apartment could be your best option - depending on the location. Despite the peace and beauty to be found inland, the coast is simply irresistible and perceived by property buyers and visitors alike as the place to be. So, what are the possibilities?
A 15-minute drive from Split airport will get you to Marina, near Trogir, where Dream Property Croatia's off-plan release of 26 apartments will be sited just 200 metres from the sea. Cicada Apartments combine high build quality with worthwhile features like air conditioning, intercom, ceramic tiled floors and TV/SAT connections. Large, shaded balconies take in views of the Marina Bay and garage parking is available as an option. Best of all, the medieval town of Marina is just a ten-minute walk away, with sandy, olive-fringed beaches and berthing for yachts and motor cruisers. Apartment prices start at €95,600 (£65,000) and the development is set for completion in June 2008.
In nearby Seget Donji and set for completion in June 2007, Dream Property Croatia's Oleander Apartments are five new one-bedroom and studio units sited in a green and peaceful area. Selling points include superior build quality and finish, large balconies with stunning sea and island views. There are also parquet and ceramic tiled floors, air conditioning, electric blinds, Jacuzzi bathroom and even a Mediterranean-style garden. Options include car parking and a mezzanine gallery in top-storey apartments. Priced from €68,800 to €100,000 (£47,000 to £68,000), the apartments look like excellent value for money.
Further along the Dalamatian coast lies Rogoznica, a centuries' old authentic fishing village with a Mediterranean air, complete with sheltered harbour, palms, cove-style beaches and modern marina. Currently nearing completion on an elevated site with wide coastal views is A Place in Dalmatia's three-storey development of 60 luxury apartments. Parking is included, as are parquet and ceramic tiled floors, intercom, air conditioning plus high-quality windows and blinds and prices start at €77,000 (£52,000).
If the Istrian peninsula sounds irresistible, Dream Property Croatia recommends Valdebek Park, a new development of 49 town villas in Pula, just six kilometres from the airport. Prices for one-, two- and three-bedroom apartments start at £65,000 (£44,000) and the specification includes air conditioning, safety doors, a storage room, video surveillance and private parking. Ground floor apartments come with gardens, and the area is in a 'green' part of the historic capital of Pula.
And how would you feel about owning an island property? Horizon is Dream Property Croatia's new development of 16 two-bedroom apartments, boasting a prime location on the Dalmatian island of Ciovo just off the UNESCO-listed town of Trogir. The island is linked to the mainland by bridge, bringing driving time from Split International Airport to within just 15 minutes. Each apartment has a terrace/balcony with wide sea and coastal views across the fishing village of Okrug Gornji, which has become a popular tourist centre. Visitors here enjoy diving and sailing, a wide choice of bars and restaurants, plus the possibility of more solitary escapes in a selection of quiet coves and beaches dotted around the island. Situated just a short walk from Okrug Gornji's main beach, the apartments are priced from £40,000.
If you prefer a traditional approach and are not afraid of a little modernisation, then a careful search can still turn up the occasional investment opportunity within our budget, even in a plum location. A Place in Dalmatia has a stone-built four-storey house with a roof terrace in the heart of the old town of Kastel Novi, just 100 metres from the castle and waterfront. There's scope for a little updating to bring it up to modern comfort levels, particularly for letting, but it offers sea glimpses and the shops, public gardens, open air market, seafront cafes and restaurants are all within a few minutes' walk. You'll also be located between Split and Trogir, for an asking price of just €60,000.
Down the coast in Makarska Broker Real Estate has an old stone-built house for renovation that comes complete with a wine cellar plus large garden. The beautiful location, on the slopes of a mountain, is just five kilometres from the town and one kilometre from a pebble beach and boasts wonderful sea. It could be yours for just €70,000 (£47,000).
Croatia's future certainly looks very bright. As the Croatian economy improves, increasing numbers of domestic property buyers will enter the market, while the strong likelihood of EU accession in 2009 makes things look even more attractive to buyers from other countries. As for repositioning itself as an upmarket destination, there's a lot of hard work to be done, but flagship initiatives such as the €45 million five-star hotel and second-marina development proposed for Split show both confidence and commitment. The World Travel and Tourism Council predicts that the next ten years will propel Croatia to achieving the world's fifth fastest growth-rate as a tourist destination. If they're right, the property market shows every sign of performing at least as strongly. I'll leave the last word to Martin Westby of Croatia Holiday and Home, and author of How to Buy Property in Croatia: "Now is the time to invest in this up-and-coming country, while prices are low. In three to five years' time there is little doubt that prices will be up to Tuscan levels....".
First published in Homes Overseas Magazine May 2007.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
