Dramatic is the only superlative that can be used to describe the Croatian coastline. Almost 2,000 kilometers of coastline, more than 1,000 islands and a picture-perfect Adriatic setting are reasons in themselves to visit the country, and if you needed another, its real estate market isn’t bad either.
Formerly part of Yugoslavia, an established destination for British tourists, war in the early 1990s brought tourism to a halt. The collapse of communism and the war for national survival finally resulted in Croatian independence and the country has once again secured its place with Brits looking for a holiday destination and more. With full entry into Europe scheduled for 2010/11, this country is firmly on its feet and today, thankfully, there are little signs of the war that destroyed much of Croatia’s heritage.
Cushman & Wakefield, an established agency that has operated in the UK since 1907, also has an international division and Croatia is the latest addition to its portfolio. Marketing manager Victoria Doyle says: “We’re based in the UK, but we’ve all been to Croatia and we love it. It’s very unspoilt and a real treat.” Like many sales agents across the country, Doyle believes that the war, despite its great cost in lives and the environment, partially protected Croatia: “Because of the war, Croatia did not develop as some countries, so you don’t see the massive development that mars the coasts of other countries”.
The government has been so interested in protecting Croatia’s innate beauty that it at one point issued a moratorium on all new construction, halting development while a rezoning program was put in place. Some developers are still sitting on large parcels of land, but the moratorium has been lifted to ensure that only developments that strictly adhere to strict government building regulations can continue. Cushman & Wakefield specializes in the sale of new developments with strong investment potential. Project manager Charlie Winand believes his Kavanjin development, on the southern Dalmatian island of Brac, contains all the elements to make it a great investment: “It’s being built by an established developer, we’ve done all the due diligence and, even with a conservative estimate, we believe prices will increase by around 10 percent over the next 12 months.”
Connected by ferry to better-known Split (a cosmopolitan city often compared to Barcelona or Lisbon), Kavanjin markets itself as “a luxury boutique development and island hideaway” thanks to its excellent location – a 45-minute ferry ride away. minutes takes you to Split, but in less than half an hour you can also be on the attractive islands of Korcula and Vis and reach Hvar, which is quickly gaining a reputation as a “party island”. The first phase has already been sold, but the second phase consists of one, two and three-bedroom apartments, many with sea views; The small and exclusive development also has its own cafeteria and communal pool. With prices starting at £85,000, gross rental returns are forecast to be around 6.5% and with tourism growing, the odds look favourable. “Currently there are not enough beds for everyone and this development already has a management company,” adds Winand. Of particular interest to investors, buyers who form a company as a vehicle through which they later buy property in Croatia, can claim a VAT refund of 22 percent of the sale price. Other incentives to buy in Croatia include exemption from capital gains tax after three years of ownership.
Winkworth has also recently opened an office in Croatia, in Dubrovnik, which Winkworth Managing Director Dominic Agace calls: “A key addition to our growing international network providing new investment and second home opportunities for our client base. With strong infrastructure and excellent services Croatia, and in particular Dubrovnik, will continue to grow as a boutique destination for international travelers and with this trend the strength of the real estate market will grow.” Winkworth is currently selling a three storey resale house in Orebic, Peljesac, Dubrovnik. Currently divided into apartments, the property has sea views and is for sale for EUR 880,000 (£630,000).
Often called “the jewel of the Adriatic”, Dubrovnik is a stunning city that is easy to explore. With a relatively small population of over 30,000, it stretches along the coast for several kilometres, but its old town is surprisingly small and easy to explore on foot. Walking along the city walls is a must-see delight, and a constant stream of tourists streams down the city’s main street, Pile Gate, also known as Stradun, in the summer months. A good base for home hunting, Winkworth hopes to offer opportunities to buyers, investors and developers throughout Croatia, from Istria in the north to Split and Trogir in the heart of Dalmatia.
Many buyers looking to buy property in Croatia know exactly where they want to be, says Savills’ Jelena Cvjetkovic, who calls them a “sophisticated and well-researched” bunch. Many come from yachting and are looking for a base from which they can enjoy their passion, but more and more investors are looking to hotspots like Split and, more recently, Zagreb, where he estimates prices are rising by around 15 percent a year. “It’s not a tourist destination, but it’s backed by a strong domestic market with prices much lower than most European capitals,” adds Cvjetkovic, who also says great value can be found in Lopud and Sipan on the Elaphite Islands. between Dubrovnik and the Peljesac peninsula. Current properties for sale in Zagreb include the Gramaca apartments, ‘urban villas’ with one apartment per floor, a popular concept in Croatia in recent years. Designed by award-winning architect Marko Piljak, the apartments are located in an upmarket area of Zagreb and have wonderful views of Mount Sljeme, which hosts a section of the world ski championships annually. Prices range from EUR248,000 to EUR760,000 (£195,000 to £600,000).
In the north of the country, Istria is fast becoming a rising star among property investors and this is where the country’s only decent-sized golf course is located, although several more are in the planning stages. Filled with spectacular hilltop towns and rolling valleys, this part of Croatia is often compared to its pricier Tuscan counterpart just across the Italian border, and part of its attraction is the ease with which it can be crossed. . Foodies flock here, as the cuisine is also Italian-based: pasta and pizza are plentiful, and you can enjoy the truffles for which this region is famous. Istria is the most developed region of Croatia in terms of tourism, sadly there are pockets of ugly development on its coast that cater to the hordes of Germans, Austrians, Italians and Slovenes who flock here, but you’ll also find smart places like Italian Rovinj on the west coast, catering to a classy and upscale crowd.
Adriatic Riviera is currently marketing an exciting project in Istria in Novigrad, 20 minutes from the much-loved tourist spot of Porec. The Nautica Project is a few minutes walk from the new five-star marina, the beach and the town center, which has many restaurants, cafes, bars and shops. All apartments have a balcony and parking space and prices range from EUR123,000 (£97,000) to EUR185,000 (£146,000) for three bedrooms. Accessibility to this part of the country is good and shoppers here can fly to Pula, just 45 kilometers away, Rijeka or Trieste and Treviso in Italy.
