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Property investment in Dubrovnik, Croatia |
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In the second part of our city special our writer investigates investment opportunities off the beaten track
The Croatian port city has become achingly fashionable in the past decade - with prices to match. The agencies says that average prices in Dubrovnik are £1,820 per square metre, but you can pay as much as £9,800 within the walled old town.
The market has slid by 20%-30% this year, bringing a necessary correction, but housing values look certain to hold in the longer term, in part because the surrounding hills limit the scope for expansion. There are few forced sellers, at least among the locals. Croatians are “proud people who don’t usually have mortgages and have often inherited their house, so they aren’t desperate to sell”.
The rental market is also good, especially for flats with all mod cons in sensitively renovated old buildings. Three-bedroom townhouse is renting out for £380 a day, and one-bedroom, 33-square-metre flat will command £85 a night.
It is virtually impossible to find small one-bedders to renovate in the old town any more.
The buying process in Croatia is slow and bureaucratic: registering a property in your name can take up to 12 months and many foreign buyers find it easier to set up a Croatian company and buy through that instead (although this can mean administrative costs). These rules are set to change in February, with the intention of making the property-buying process easier.
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In Eastern Europe real estate sales in down trend |
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The research published today by Royal Institution of Chartered Surveyorsa showed a significant decrease in purchase of properties in new European markets, including the Croatia.
It says that the Eastern Europe, among Bulgaria, Czech Republic, Hungary, Poland, Romania, Russia and Slovakia, in the third quarter 46 percent of institutions reported drop in purchasing and Padom realiziranih kupnja najviše je bila pogođena Rusija.Russia was most affected by the fall.
At the global level, 45 percent more of the institutions reported a drop in the demand for rented premises, while investing demands fall reported 73 percent more institutions.
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Real estate prices in Croatia low enough to attract foreign investors |
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Real estate prices in Croatia low enough to attract foreign investors
Investment Group Croatia general director Andrea Marston said to Croatian Villas web site that a substantial growth could happen on the Croatian real estate market in the next ten years.
She predicts a double-figure growth in the next few years, saying that at present the prices are low enough to attract investors from Great Britain. As an important factor contributing to the growth, Ms. Marston lists the location and hospitality of Croatian hosts.
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From 2009, EU citizens will easily buy the property in Croatia |
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From 2009, EU citizens will easily buy the property in Croatia
EU citizens will be able to freely buy property in Croatia from February 1st, 2009, while the existing restrictions will be valid only for other foreigners.
It should be noted that foreigners are even now successfully bypassing obstacles to purchase real estates by establishing companies or through the purchase of Croatian citizens. However, on February 1st, 2009 a big psychological barrier will be gone and individuals who are citizens of the EU Member States will be able to buy real estates in Croatia.
According to the document that Minister of Foreign Affairs and European Integrations, Gordan Jandroković has sent to President of the National Committee for monitoring the negotiations with EU, Vesna Pusić, such a decision will take effect by virtue of article 60 of Stabilization and Association Agreement, and EU citizens will be provided with the same treatment as Croatian citizens at acquiring properties.
Croatia's negotiating position is that the free purchase of agricultural land and forests, for which it was suggested a transitional period of 12 years from the date of Croatia's entry into the EU will not be liberalized, as well as land in national parks and nature parks, considering that Croatian citizens can not buy properties in such areas as well.
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