A Guide to Investing in Real Estate in Croatia

A Guide to Investing in Real Estate in Croatia

 There’s a lot of interest in properties for sale in Croatia. It’s not just holiday makers or the usual crowd of Germans, Slovenians and Austrians who are buying holiday homes in Croatia – there’s a great deal of interest coming in from overseas property hunters from emerging countries such as China and Russia as well.

So what can you expect if you want to sell your property in Croatia fast? Well, first, you will have to be thankful to the hit TV show Game of Thrones for making Croatia famous - large part of Game of Thrones was shot in Croatia. There is a lot of curiosity about Croatia around the world and which has certainly made the tourism department very happy.

Croatia is one of the most under-explored countries in Europe, but that is changing fast. A number of tourists are making their way to Croatia. Many are looking for holiday homes, either for themselves or to be rented out to other tourists. There’s an excellent potential for a decent rental income to be made here.

The biggest buyers of properties in Croatia are the 4 million expat Croats, who are settled in the USA, UK, Sweden, France and Germany. Many are returning home after having spent much of their adult life abroad and having made a lot of money.

And why not? Croatia is a beautiful country, with a mild climate, clean air, crystal clear water, with a low crime rate and without the overcrowding seen in other countries in Europe and across the world.

Croatia is a great place to buy a holiday home or a second home and it’s a wonderful country to retire to. That’s why there’s a lot of interest in Croatian properties.

What about the economy? The economy can be better – the unemployment rate in Croatia is on the high side, and the mortgage rates are too high. A lot of people have been saddled with bad loans and are finding it hard to get out of it.

There’s a problem with illegal properties too. The Croatian government has received over 800,000 applications from homeowners who want their properties to be legalised. So far, the government has legalised over 50% of such properties, which is a good thing.

 Property prices are very low in Croatia. In fact, the average home prices in the country are still 30% lower than they were before the recession hit not just Croatia, but much of Europe in 2009.

The other issue is that most of the homes and apartments in Croatia don’t really appeal to foreign buyers. Many of the homes were built by the homeowners and their families, or by tiny construction crews.

They have not been built according to the expected standards for overseas properties. As a result, the demand for properties is yet to shoot up. Even so, things are changing.

Prices of beachfront properties have shot up recently. Property prices in Grožnjan have increased by 36 percent and in Svetvinčenat by 21 percent. Things are certainly headed in the right direction, and this is not a bad time to invest in Croatia.

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