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Investment Overview

Croatia formed part of communist Yugoslavia until it declared independence in 1991, and only in 1998 did the country emerge from years of conflict as a secure and fully–independent nation, sparking demand for investment property in Croatia from overseas. In the few short years since, Croatia has developed to the point that its EU accession is thought to be imminent, its large tourism industry is firmly back on track, and demand for real estate – for rental or resale – has triggered activity in the market for investment property in Croatia.

Burgeoning tourism

With 8.5 million foreign tourists visiting the country every year, Croatia is the 18th most visited country in the world, making investment property in Croatia a popular choice with investors wishing to target the holiday rental market. The Croatian government intends to position the country as an upmarket holiday destination and is promoting it as such, which is consistent with the government’s intention to avoid over–development, and will maximise the rental revenue on properties in tourist areas.

Property price growth

As traditionally occurs in the run–up to a country’s EU membership, property prices in Croatia have increased by as much as 20% per year in some areas. The capital growth seen in the Romanian and Bulgarian property markets surrounding their EU accession has served as a recent reminder to many potential investors of the gains to be made. Croatia has been in receipt of considerable foreign investment since 2005 when the EU Stabilisation and Association Agreement came into force, including investment from many large international companies. The country has a cheap and educated work force, which has encouraged a number of companies to establish bases in the country. This creates more jobs and higher salaries for the local population, which then translates into greater domestic demand for property.

Buy–to–let investment

Much of the recent property investment has tended to be into tourist areas. Investors are responding to the country’s growing tourism industry by purchasing accommodation suitable for short–term holiday lets. The industry is accessible to overseas investors and foreign property owners share the same rights as Croatian investors. Foreign buyers can now take out mortgages in Croatia, which makes the market more accessible and increases the potential for further growth.

Related items

Documents and Reports

	Croatia property investment report (437Kb)
	Croatia country guide (940Kb)
	Croatia property guide (781Kb)
Documents and Reports

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