The stabilization and the improvement of the political system made by the croatian government during the last years earned the country the right to join the European Union on 01st July 2013. Croatia is drawing great deal of attention and becoming one of the hottest vacation spots, not only for an average vacationer, but also for celebrities and some of the world’s wealthiest people.
According to Croatian Times, all of these recent changes are not only rapidly increasing interest of foreign investors in Croatian real estate, but will most likely have an upward impact on property prices. For the time being, biggest concern for the foreign investors is the safety and acquiring the property with the clean title. These are the issues that Croatian government has been working on, prior to joining the EU.
Prices continuously moving down in most major real estate markets in Croatia. The downfall has significantly slowed down during this year compared with the big drops in 2008 and 2009. However, in most areas, over the four year period, prices have fallen around 30%.
In Croatia’s capital Zagreb, where the real estate market is most dynamic, recently prices have fallen (April, -0.6 %). While the prices in Zagreb are slowly falling, due to the summer tourist season, along the coast, housing and apartment prices are going up. This is an expected reaction from the local sellers, anticipating the increased interest in the coastal real estate and potential buyers among some of the vacationers. Study shows that prices have previously repeatedly increased in April for most of the coastal cities, such as Rijeka, Split and Pula. The only city that is trailing this year is Dubrovnik, where prices have fallen 3.2% from the previous month, coming from a for the country high level.
The coastal city of Split, has shown biggest real estate price increase for the region, up 3.2% from the previous month, and up 5.1% for the year. Average price per qm are actually somewhere around EUR 2.100 per average. For the bargain hunters in coastal regions, possibly best deals could be found in the biggest city of Pula, Istria region, where the biggest annual price drop was recorded at 6.5%.
Still existing economic problems in Croatia and the overall outlook of the world economy will keep prices also during the next months on the current level even with the for Croatia very positive membership of the European Union. Only first line properties and luxury estates on prime locations show increasing demand.
As member of the EU, Croatia will attract the interest of further investors from Western Europe who trust in the progress of political and legal environment. The main buyers groups already come from Germany, UK, Austria, France and Scandinavia.