Croatia offers further room for growth
15 September 2008
Croatia’s property market is expected to gather further strength, following the Croatian government’s decision to grant people from EU member states with the same property buying rights as Croatian nationals. Restrictions will remain in force only for non-EU residents.
The new law, which comes into effect on 1st February 2009, will without a doubt attract greater international property investment, particularly from within Europe.
Average property prices in Croatia have already appreciated by 90% over the past 10 years, with 61.6% of this increase occurring since Croatia joined the EU in 2004, according to Croatian National Bank. However, there is further room for capital growth.
Last year the country attracted about ten million tourists, and the World Travel and Tourism Council estimates that tourism in Croatia will rise annually by 8% between now and 2015, compared with a global average of only 3%. Therefore, it is not surprising that demand for property in Croatia is increasing. The upmarket estate agent Knight Frank reports that average property prices in Croatia grew by 5.8% in Q2 this year.