An Introduction to properties for sale in Croatia

Croatia

For investors looking to tread into unknown territory, Croatia is considered already too mainstream, with property prices having risen considerably over the past few years and Hollywood’s biggest names having bought into its charms.
For those looking for holiday homes in Croatia, it is still considered an ‘emerging market’. Property for sale in Croatia offers a cheaper alternative to Spain, yet it enjoys a similar Mediterranean climate, as well as unspoilt natural beauty and beautiful, historic towns.

Croatia’s Dalmatian Coast, which stretches from Split to Dubrovnik and features the stunning offshore islands of Hvar, Brac and Korcula, has attracted a wealth of high-profile prospective buyers, including Prince Charles, actor John Malkovich (who paid £3m for a derelict villa near Dubrovnik) and footballer Rio Ferdinand.

The stunning walled town of Dubrovnik, where Bill Gates and Stephen Spielberg spend summer holidays, is a favourite spot for overseas property investors, and prices can only continue to rise as Croatia approaches its EU accession date of 2007.

While only a handful of older properties come on the market in Dubrovnik, new-build is booming in this area, with land far cheaper than other European hotspots.

Building restrictions mean that the coastline will remain largely protected though, avoiding the kind of over-building seen on some of the Spanish coasts. New buildings cannot exceed three storeys and be within 100m of the sea. There is also an incentive to hold on to your new investment as there is no capital gains tax if you own for more than three years. Istria, in the north of Croatia, is another focus for prospective buyers, well served by Ryanair to Trieste airport and Easyjet to Ljubljana. Prices are lower than the more fashionable Dubrovnik, with two-bed seaside apartments costing around £70,000.

In other coastal areas, expect to pay £800-£1,500 per m2 for apartments.
As with all Central and Eastern European countries whose markets are relatively new to foreign buyers, local laws on property sales and registration are open to wide interpretation and it is not yet known how long it could take to see legal claims come to trial.

The property industry is less regulated than in the UK and some agents are merely working under business licences allowing them the status of self-employed traders of unspecified goods. So it is crucial that, through Lighthouse, you only deal with a reputable agent.