Conference
on Croatian Property, Zagreb
Last month saw the first international conference on the
Croatian property market held in Zagreb. There was considerable
interest among agencies, potential buyers, investors and diplomats.
In a number of discussions, one of the biggest surprises
was the negative attitude from government officials regarding
foreign individuals purchasing property in Croatia.
Officials Jerko Rosin and Matija Salaj accused potential
buyers of merely wanting to make a quick profit instead of buying
property for their own enjoyment. They seemed to totally misunderstand
data on foreign buyers in Croatia. Mr Rosin said that in January
2005, 50 new firms were registered in Croatia. He failed to realise
that when purchasing property via this route, it is required to
state the intentions of the company and the standard practise
is to register as a property company for selling, renting and
so on [often known as purchasing property via the "company
route"]. It is highly unlikely that in only one month, 50
foreigners would be opening their own businesses as estate agents.
Fortunately, some Croatian participants realised
this immediately and brought it to the attention of officials.
In subsequent days the Croatian media heavily critised government
officials for not properly researching their facts.
Another official said that, with high interest from
foreigners, there was a danger that the Croatian coast would be
devastated. Another Croatian participant responded by saying that
95% [!] of properties in the coastal region that were built or
owned by Croatian nationals were constructed without planning
permission - if any group were responsible for negatively affecting
the coastline, it would be the Croats!
It was pointed that, generally, foreign buyers improve
and update their properties, which enhances the surrounding areas,
as well as investing in the local economy.
Organisers of the conference are planning another
event for early next year, and hope for an even greater turnout.
Croatian Property Market
in the Daily Mail
One of the UK's highest-circulation daily newspapers,
the Daily Mail, today [08.04.05] devoted a full page to an article
on the Croatian property market.
Under the sub-heading "Croatia's gold rush
may be over, but prices are still affordable on its unspoilt coast",
the reporter Nigel Lewis mentions that a potential buyer should
have at least £65,000 to spend.
He says that Croatia is Eastern Europe's gem, that
it has a beautiful coastline with secluded beaches and more than
a thousand small islands as well as an unspoilt interior.
Mr Lewis mentions that brand-new developments are
as good, if not better, than comparable examples in Spain, but
that prices are lower in Croatia. One such example is the Olive
Island Resort on the island of Ugljan, just off Zadar. The first
phase was finished in November 2004, and apartment prices have
already appreciated by 15% since then. The whole project is to
be completed at the end of 2006, and apartment prices start at
£90,000 and go to £162,300.
According to the newspaper, Dubrovnik has become
very expensive [of course!] with prices for decent apartments
starting at £140,000. However, Croatia is still considered
to be a good investment. Kieran Kelleher, of Dream Property Croatia,
says: "Despite recent price rises, the market is still in
its early stages. Values are being kept low by several factors."
These factors include difficulty in obtaining mortgages
in the country (this is to change soon), and an incomplete infrastructure
(although this is also changing - the motorway between Zagreb
to Split is complete, whilst work on the section to Dubrovnik
has just started).
A side story on an early investor from the UK, Rowan
Carstairs, describes how he bought four plots of land, and apartment
in Dubrovnik and a 5-bed villa in Mlini. He says that one of the
first apartments he bought in early 2003 for £60,300 is
now being sold for £105,000.
According to Mr Carstairs, Croatia is the easiest
and safest place to buy in Eastern Europe, particularly compared
with Bulgaria. But he warns "There are plenty of spivs out
there who say they have property to sell when they haven't."
In another sidestory, under the heading "Beware
of red tape", the newspaper goes through some possible problems
with buying in Croatia. The greatest one concerns the issue of
title deeds - very often, Croat families passed down property
ownership through the generations without properly registering.
[Also to mention: some properties were built/added
to without planning permission, and the government is cracking
down on these. In most cases, these properties will need to be
demolished. This year, this has occurred in Istria where, so far,
34 houses were pulled down.]
Article in Sunday Business Post
We have been alerted (thanks Mr Smyth!) to
an article in that appeared in the Sunday Business Post (in Ireland)
on 10th April 2005.
The article, "Tough Road Leads to Easy Life
in the Croatian Sun" by David McWilliams, discusses many
of the problems associated with purchasing property in Croatia,
to which all potential buyers should be aware. However, Mr McWilliams
does also mention how to get around some of these possible hassles.
Ultimately, the conclusion is that purchasing property
in the Croatia is worth it!
Read the full article here.
Property in Croatia first page
Property in Croatia second page
Hot Properties in Croatia |
