Real Estate Market in Croatia
Less than 10 years ago, foreigners were given the possibility of buying property on the Croatian territory.
Foreign citizens from EU, as well as Croatian citizens have the right to acquire property on their own name on the Croatian territory, with exception of the agricultural land. Real Estate Market in Croatia since its very beginning until today, is experiancing a true rise. Average annual growth in the real estate market is 15%, and in some areas such as the island of Hvar and Trogir annual increase is 30%. During the 2009-2010 economic crisis, real estate prices on the Croatian market have remained stable and have not experienced a fall (as incertain regions of the Mediterranean bay). Furthermore, property prices in the market continue to grow. New construction conditions such as environmental conditions, insulation and security have quite an impact on the growth of the real estate prices. In general, law and administration in Croatia is more and more matching with the existing laws of Western Europe.
Current Situation: It is required a comparison of prices on the real estate market in the Mediterranean bay:
Spain – France – Italy – Croatia
Each month are published average prices on the real estate market:
January 2013: The average price per m2 on the coast:
- houses: 1672 €
- apartments: 1816 €
- Land: 251 €
Clients: As real estate ageny these past 7 year most of our clients weare from Western Europe countries and each year there is an increse in clients from Sweden, Norway, Belgium, Switzerland, Italy, Germany, South Africa, Canada and furthermore Hungary, Poland, Czech Republic, and Russia, and also clients from eastern countries, for which Croatia is their Cote d’Azur. English and Irish clients ware mass investors in Croatian properties few years back, but now as customers are less present on the Croatian market. The growth of international clients positively affects on the development projects and the market prices, and thus property market in Croatia doesn’t feel consequences of economic crisis .
Investing in Croatia: Transactions in Croatia are quite safe (when performed in cooperation with professional and serious real estate agents). Capital in Croatia is moving freely and without any difficulty. Contributions from rent of the properties are very promising and range from 4 to 7% net. In the case of resale of the property after 3 years, there is no tax on profit, as well as no difficulty in regaining own invested capital.