World Market analyst:
inwest in Croatia
World real estate market analysts
ranked Croatia and Montenegro
second most profitable places to invest in real estate.
invest money in Croatia and Montenegro. Forget Spain, as a result of German credit and property prices are now only in the first three months of 2009. fell by 6.5 percent, to wait for prices to fall another Florida or invest money in the long term cost destinations such as Turkey and India, which have yet to receive an economic boom.
The world has already begun selling off properties.Even a few German banks have already started to sell its portfolio in real estate prices dropping by 50 percent," says Falk Schollenberger, the first man company Jones Lang LaSalle, in charge of residential investment in Germany.
source: kvarner o2
House price movements
The high point of the boom was perhaps 2007, an exceptional year in the Croatian housing markets.
The average price of newly built dwellings in Croatia surged 26% to HRK11,252 (€1,514) per sq. m. from HRK8,939 (€1,203) in 2006. This was in sharp contrast to 0.7% (3.9% in real terms) drop in house prices in 2005, and the negligible 0.3% increase in 2006 (2.8% drop in real terms).
While housing demand and supply has been increasing since 2001, the erratic movement of house prices can probably be attributed to changes in speculative demand. Wealthy Croatians traditionally park their wealth in housing in times of uncertainty. For instance, when the economy started to weaken in late 1998, demand for new housing increased substantially. The average price of new houses rose by almost 20% in 1999 - the year of President Fradjo Tudjman’s death - while the economy contracted 0.8%.
kvarnero2
Foreigners love Croatia
– but only the coast
There are about 70,000 foreigners who own property in Croatia, mostly along the Adriatic Coast.
Due to complexities regarding taxation and foreign ownership rules, most of them bought through a company.
Real estate is more actively traded in the Adriatic coastal areas and other popular tourist destinations. The Northern peninsula of Istria is home to a property boom fuelled by German buying.
Around 55% of approved permits for foreign acquisitions were granted to Germans. Austrians come in second place with 16% of permits granted, followed by Britons (6%), Hungarians (4%) and Dutch (3%).
Interest growing for
Croatian real estate
Foreign interest in Croatian real estate has increased as the definite date for its accession into the EU is now known, reports Croatian radio television.
Croatia will become an official member state of the EU on 1 July 2013 and already there is increased interest from European investors in owning property in Croatia, which will have an effect on real estate prices in the country.
Foreign property buyers interested in real estate in Croatia have said that clean titles and saftey are the biggest priorities when deciding to purchase property.
A recent survey has found that Croatians prefer to own their own apartments. Some 86 per cent own their own apartments in Croatia, compared with the rest of Europe where the average is only around 20 per cent.