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Croatia Property Investment For Sale | Guides, Economy and Croatia Hotspots

 

"A popular tourism hub but not the investment it once was.”

 

Steeped in centuries of colourful history, home to one of the world’s most well preserved fortified cities and blessed with an idyllic Adriatic coastline, Croatia’s appeal is extensive. Its borders brush the slopes of the Alps, plunge deep into the Pannonian Valley and overlook the Danube and Drava rivers. Its interior comprises verdant forests, deep gorges, a collection of magnificent lakes and rich vineyards as well as smatterings of quaint villages, romantic castles and stately manors.

Named ‘the Pearl of the Adriatic’ by George Bernard Shaw, and enjoying a blend of Mediterranean, Southern European and Balkan cultures, Croatia is one of Europe’s most beautiful countries benefitting from an average of 260 days of sun and year. With 1185 islands lying just off its coastline, Croatia offers a host of secluded beaches and tranquil island living with brilliant sandy beaches.

It is no surprise therefore that a large percentage of the Croatian economy and employment centres on the tourist industry.  For the same reasons the country has become a popular property investment centre with foreign investors given the same rights as domestic investors. Thriving before the European recession, Croatian real estate prices have however continued to fall since and look unlikely to recover in the near future.

Croatia has suffered dramatically since the sub prime crisis hit the world with high unemployment, uneven regional development and a difficult investment climate with reduced exports and capital investment. With a high foreign debt, a strained state budget and an over-reliance on revenue gleamed from tourism it looks like it may take some time before the country can bounce back.

Country Guide

Geography

Croatia is situated in southern Europe bordering Slovenia, Hungary and Italy. The country has many mountains and highlands and boasts some of the best pebbled beaches along the coastline. Sava, Danube and Drava are the main rivers that flow through Croatia. The main seaports are Rijeka, Pula, Zadar, Sibenik and Dubrovnik. Croatia has 1185 islands lying just off its coast offering quiet beaches and relaxing island life.

Government

Croatia has been a democratic republic since 1990. In 1991 Croatia declared itself independent from the Federal Republic of Yugoslavia. 

Language

Croatian is the official language of Croatia although many nationals speak Serbian, Italian, Slovak and German, this is mainly due to the growing tourist industry in the country.

Standard of Living

Croatia enjoys a relatively high standard of living; the country has a modern European way of life and with the government focussing on tourism as a main sector, the country is continuously being redeveloped to allow for more comfortable lifestyles.

 

Country Economy

The Republic of Croatia has a stable high-income market economy and is the most highly developed economy in South Eastern Europe. The economy's main industry is its service sector which account for around two thirds of the total GDP. The industry sector is made up of shipbuilding, food processing and the chemical industry. Tourism is very important contributing about 20% GDP but it only contributes to the economy in summer during peak holiday season. 

Croatia mainly trades with other European countries; Italy is their most important trading partner.

Key industries:

Transport equipment, textiles and chemicals are the country's main export commodities. The industrial sector is dominated by shipbuilding, food processing, pharmaceuticals, information technology, biochenical and timber industry.  

 

Hotspots

Zagreb

Zagreb is the capital of the Croatia and as the country's largest city it is an important economic, industrial and cultural centre. With a population of nearly one million people almost a quarter of the population live there. The city is situated just south of the Medvednica Mountains, along the Sava River. Zagreb is renowned for having numerous amounts of museums which all show the history and culture of the city.  The city hosts many festivals and events throughout the year which shows the traditions and culture of the people, an experience for any visitor. 

Brela

Brela is a town situated on the Adriatic coastline of Dalmatia, a region in the modern part of Croatia. With pebbled beaches and clear blue seas Brela is a main tourist destination. The Brela beach is recognised as one of the top ten beaches in the world and the best beach in Europe. The area offers many attractions and activities whilst the town has a selection of fine restaurants and bars to tempt the tourist. The town has a very much a buy-to-let market for investors in Brela due to the vacation rents to tourists holidaying in peak seasons.

Istria

Istria, in the north-west of Croatia, is one area which has yet to suffer the consequences of increased foreign investment. The region has tranquil towns, clean beaches and acres of countryside, comparable to Italy. Istria was in fact part of Italy at one time, and Venetian architecture and the Italian language are present in many towns and villages, a fact which has led to the region being dubbed 'the new Tuscany'. The area is easily accessible – budget flights operate to both Ljubljana and Trieste – and have traditionally attracted visitors from Italy, Germany, Slovenia and Austria. Thanks to this tourism Istria has a more established property market than the rest of the country.

Dubrovnik

Dubrovnik is a beautiful World Heritage medieval walled city and has some of the most expensive real estate in Croatia - some would say on a par with Kensington and Chelsea in London.

 

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