Croatians Voted For The EU entry
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On Sunday 22nd January, the people of Croatia voted decisively for the country to join the European Union. It was the second time in the country's twenty years of independence that a referendum had been held. It comes at an important time as the European Union is now reconsidering its position regarding further admissions to the Union. Croatia has therefore managed, although with considerable effort, to get through the door just in time. Croatia is set to join the EU in July 2013.
For Croatia real estate business this comes at an important time. Having suffered a major contraction in the last few years with many foreign investors having been put off by both bureaucracy and difficulties in the Croatia real estate market, confirmation of the EU accession coupled with improving conditions in the property market should see increasing interest. Croatian property prices are currently around 30% off peak on average, with much of the better quality housing stock in the leisure market having now sold through. Prices of land next to the sea on the other hand are rising, up around 10% on last year. We also expect interest in Greenfield sites to improve this as a result of EU accession in 2013 but this sector will continue to struggle until we see improvements in credit markets.
