Croatia Property Investment News

Croatia’s tourism to benefit from a new port in Zadar

€220 million is to be loaned to the Port of Zadar authority in Croatia to finance the construction of a new ferry port. The port will be located 3.5km south of Zadar’s city centre and will greatly benefit the tourism of the region, due to the creation of additional berthing for larger international ferries and cruise ships. Zadar will also see the development of international-standard onshore facilities to cater for the influx of extra tourists that the port will bring.

The project is being co-financed by the European Investment Bank (EIB) which is lending €100 million; KfW, a German government-owned development bank which is lending €120 million; and the Croatian Government which will provide the remaining funds required. The loans will finance the design, supervision and construction of the infrastructure of the new port and other related works, including the necessary measures to ensure that the environment is sufficiently protected.

Mr. Matthias Kollatz-Ahnen, EIB Vice-President, commented that the project “…creates new opportunities for the historical city of Zadar and at the same time strengthens the harbour’s European links. It will increase the berthing capacity for domestic and international ferry vessels and cruise ships, thus improving links between Zadar and Croatia’s islands and other countries of the Mediterranean area”.

The EIB supports investment projects in Croatia (as an EU accession state) that will “prepare for EU membership via the development of transport, energy and communication infrastructure, the implementation of EU environmental standards and support for investments by SMEs and municipalities”. Since 2001 the EIB has provided loans to Croatia totalling around €1.26 billion, including the current loan. These have largely been to extend and modernise the country’s road and rail infrastructure.

This new port, and the benefit to the tourism industry that it provides, is good news for those who own investment property in Croatia, in particular those who have chosen the central Dalmatian city of Zadar and its region for the location of their Croatian investment. The historic city is growing in popularity with overseas investors, particularly the retired due to its excellent climate, while property prices in the region are generally still low.