Croatia A great market

Croatia The demand for real estate on the new Côtes in Europe is increasing. Experts such as Chris Kalin of Zurich based international property consultants Henley & Partners, are expecting "average rises in Croatian real estate prices of 100% to 150% over the next three to five years." Croatia is perfectly placed for tourism, with over 600 million people within three hours flying distance. Developers react to new upcoming markets which result to coast lines being overdeveloped quickly. Croatia however is sailing a different course; only very few houses and resorts have been build. In 2004 the government adapted a new law that prohibited the wild development of real estate along the coast. This law intends to maintain the original character of Croatia 's coast. Croatia , with its slogan: "The Mediterranean as it once was" is taking a more sustainable approach to its future. That is why Croatia will outshine other 'second home destinations' such as Turkey and Spain in quality.

The coast of Croatia attracted in 2007 10,2 million visitors. The growth in tourism is estimated at a 7,6% annually for at least the next 9 years. With this Croatia is positioning itself among the top 5 fastest growing destinations (source: World Travel and Tourism Council). The average spending power of the local Croats has also doubled since 2001.

All this only marks the start of a new era. Secretary of Tourism, Zdenko Micic recently announced a new 1,8 billion euro investment. This, together with a 700 million investment in roads and air traffic infrastructure, is going to make the country even more popular.

Croatia offers the same natural beauty (according to some even more) and touristic infrastructure as the well known Spanish costas and/or French Riviera, however for much lower prices. The prices are rising quickly towards other European levels. Espacially in the summer, when the attention for Croatia is high.

When factors including average house price, average number of weeks the property is likely to be rented, and average rent per week are taken into account, Croatia is a strong destination to make a profit from rental yields. Investors can expect average net rental yields of 5.8 per cent per annum in real terms from a Croatian property, compared to just 2.4 per cent in real terms in Spain. Knight Frank's International Residential Review states that for properties on the Black Sea coast, the average rental yield is between 5 to 7 percent.

Croatia and the EU

Croatia borders 2 EU countries. Negotiations and law adaptations towards EU law are taking place on a day to day basis with EU admission date expected as early as 2009. Middelland participates actively in the dialogue about admission. Most laws are already in line with EU regulations. Tax laws protect investors from paying tax twice and investor regulations assure that any investor can repatriate his profits at any time. EU admission expectations are making the country only more attractive for investors. Foreign investment if further promoted by the 'Croatia Investment Promotion Outreach Alliance' (CIPO). Mortgages have only since recently become available to foreigners. The spinn-off from a whole new group of buyers is yet to come. EU will open the market for all banks abroad to offer this service.

Croatian real estate can be considered as a great market!