Croatian Hotspots Attracting Investment Attention

For real estate investors, it’s crucial to be aware of global hotspots and ensure every opportunity is taken advantage of. In Croatia, several cities continue to attract growing residential values. Sergio Serdarušić, the owner of real estate agency Eurovila, revealed that several micro-locations, including Split, Dubrovnik and Zagreb, continue to sell well.

Talking of the property hotspots within Croatia, Mr Serdarušić explained that tourist hotspots and the centre of Zagreb continue to hold their price. ‘When it comes to our coast, destinations such as Split, Hvar and Dubrovnik are attracting a lot of interest. Since all the best micro-locations in those destinations are already taken and laws have now been implemented that limit construction works in locations where building was previously possible, it is logical that prices are steady because there’s no competition’, he said.

Mr Serdarušić’s views come as he returns from MIPIM, Europe’s largest real estate expo. The exhibition is held annually in Cannes and this year attracted over 89 countries, 4,770 investors and 21,400 participants. It was the first time Croatia presented a number of properties and projects that displayed to foreign investors just what the nation offers.

Mr Serdarušić said that the showcased projects are measured in the billions of euros, and with the entire world present, the expo was a huge opportunity to attract investors, not only to large scale projects, but to boost overall exposure to the foreign buyer community. As such, Croatia presented several projects that investors might like to take the time to explore. These include land plots within Telascica National Park, residences on Ciovo and gold in Istria, not to mention the commercial opportunities of Istrian Spa and Pula shopping centre.

Having talked to a large number of investors at the expo, Mr Serdarušić revealed that the nation has some hurdles to surpass if it’s to attract buyers in larger numbers. Whilst the nation’s beautiful landscapes and natural scenery are a draw, many people remain worried about a slow judicial system, legal insecurities, complicated administration and tax instability. That being said, Croatia is an ideal placed for investment, with great connectivity to many of Europe’s large and thriving centres.

Of particular interest are properties along Croatia’s coastline. This is particularly true following the large drop in interest rates on long-term deposits. There are some extremely good properties available, with significant returns on investment after 12 to 14 years. If this period might seem rather lengthy for some, there can be positive rental gains for the duration, with homes that are rented during the most popular seasons attracting an annual return of between five and six per cent.

Overall, Mr Serdarušić revealed that joining the EU and losing the Ruble has cost the nation many Russian investors, but this means there are many more opportunities for other buyers. Croatia’s coastline continues to be attractive to tourists and, as such, remains a good location for buying property. With many indications the government will be addressing some of the administrative and legal issues in the coming years, Croatia is ripe for investment.