cool croatia
Dramatic is the only superlative that can be used to describe the coast of Croatia. Nearly 2,000 kilometers of coastline, more than 1,000 islands, and perfect Adriatic scenery are reasons in themselves to visit the country, and if you needed another, its real estate market isn’t bad either.
Formerly part of Yugoslavia, an established destination for British tourists, the war in the early 1990s brought tourism to a halt. The collapse of communism and the war of national survival finally resulted in Croatian independence and the country has once again secured a place among Brits looking for a holiday destination and more. With full entry into Europe scheduled for 2010/11, this country is firmly on its feet and today, fortunately, there are little signs of the war that destroyed much of Croatia’s heritage.
Cushman & Wakefield, an established agency operating in the UK since 1907, also has an international division and Croatia is the latest addition to its portfolio. Marketing manager Victoria Doyle says: “We’re based in the UK, but we’ve all been to Croatia and love it. It’s very unspoiled and a real treat.” Like many sales agents across the country, Doyle believes that the war, despite its great cost in lives and the environment, partially protected Croatia: “Because of the war, Croatia did not develop as some countries, so you don’t see the massive development that mars the coasts of other countries.
The government has been so keen to protect Croatia’s innate beauty that it at one point issued a moratorium on all new construction, halting development while a rezoning program was put in place. Some developers are still sitting on large parcels of land, but the moratorium has been lifted to ensure that only developments that strictly adhere to strict government building regulations can continue. Cushman & Wakefield specializes in the sale of new developments with strong investment potential. Project manager Charlie Winand believes his Kavanjin development, on the island of Brac in southern Dalmatia, contains all the elements to make it a great investment: “It is being built by an established developer, we have done all the due diligence and, even with a conservative estimate, we believe that prices will increase by about ten percent in the next 12 months.”
Connected by ferry to the more well-known Split (a cosmopolitan city often compared to Barcelona or Lisbon), Kavanjin markets itself as “a luxury boutique development and island hideaway” thanks to its excellent location – a 45-hour ferry ride. minutes takes you to Split, but in less than half an hour you can also be on the attractive islands of Korcula and Vis and reach Hvar, which is rapidly gaining a reputation as a “party island”. The first phase has already been sold, but the second phase consists of one, two and three-bedroom apartments, many with sea views; The small and exclusive development also has its own cafeteria and community pool. With prices starting at £85,000, gross rental returns are expected to be around 6.5% and with tourism growing, the odds look good. “Currently there are not enough beds to go around and this development already has a management company,” adds Winand. Of particular interest to investors, buyers who form a company as a vehicle through which they later purchase property in Croatia, can claim a VAT refund of 22 percent of the sale price. Other incentives to buy in Croatia include exemption from capital gains tax after three years of ownership.
Winkworth also recently opened an office in Croatia, in Dubrovnik, which Winkworth Managing Director Dominic Agace calls: “A key addition to our growing international network bringing new investment and second home opportunities to our client base. With a Strong and excellent infrastructure Croatia, and in particular Dubrovnik, will continue to grow as a boutique destination for international travelers and with this trend the strength of the real estate market will grow.” Winkworth is currently selling a three storey resale house in Orebic, Peljesac, Dubrovnik. Currently divided into apartments, the property has sea views and is for sale for €880,000 (£630,000).
Often called “the jewel of the Adriatic”, Dubrovnik is an impressive and easy city to explore. With a relatively small population of over 30,000, it stretches along the coast for several kilometres, but its old town is surprisingly small and easy to explore on foot. Walking the city walls is a delight not to be missed, and a constant stream of tourists streams through the city’s main street, Pile Gate, also known as Stradun, in the summer months. A good home base, Winkworth hopes to offer opportunities to buyers, investors and developers throughout Croatia, from Istria in the north to Split and Trogir in the heart of Dalmatia.
Many buyers looking to buy property in Croatia know exactly where they want to be, says Jelena Cvjetkovic of Savills, who calls them a “sophisticated and well-researched” group. Many come from yachting and are looking for a base from which to indulge their passion, but more and more investors are looking to hotspots like Split and, more recently, Zagreb, where he estimates prices are rising by around 15 percent a year. “It’s not a tourist destination, but it’s backed by a strong domestic market with prices much lower than most European capitals,” adds Cvjetkovic, who also says great value can be found on Lopud and Sipan in the Elaphite Islands. between Dubrovnik and the Peljesac peninsula. Current properties for sale in Zagreb include the Gramaca apartments, ‘urban villas’ with one apartment per floor, a popular concept in Croatia in recent years. Designed by award-winning architect Marko Piljak, the apartments are located in an upmarket area of Zagreb and have wonderful views of Mount Sljeme, which hosts a section of the world ski championships annually. Prices range from €248,000 to €760,000 (£195,000 to £600,000).
In the north of the country, Istria is fast becoming a rising star among real estate investors and this is where the only decent-sized golf course in the country is located, although several more are in the planning stages. Filled with spectacular hilltop towns and rolling valleys, this part of Croatia is often compared to its pricier Tuscan counterpart across the Italian border, and part of its attraction is the ease with which it can be crossed. . Foodies flock here, as the cuisine is also Italian based: pasta and pizza are plentiful, and you can enjoy the truffles this region is famous for. Istria is the most developed region in Croatia in terms of tourism, sadly there are pockets of ugly development on its coast catering to the hordes of Germans, Austrians, Italians and Slovenians who flock here, but you’ll also find smart spots like Italian Rovinj on the west coast, catering to a classy, upscale crowd.
Adriatic Riviera is currently marketing an exciting Istrian project in Novigrad, 20 minutes from the much-loved tourist spot of Porec. The Nautica Project is just a few minutes’ walk from the new five-star marina, the beach and the town center with its many restaurants, cafes, bars and shops. All apartments have a balcony and parking space and prices range from €123,000 (£97,000) to €185,000 (£146,000) for three bedrooms. Accessibility to this part of the country is good and buyers here can fly to Pula, just 45 kilometers away, Rijeka or Trieste and Treviso in Italy.