First Property Croatia

Since mid-July we have seen a dramatic increase in the amount of interest in property for sale in Croatia, in particular the Northern & Central Dalmatian region. More importantly agents have seen a significant rise, all be it from a small base, in the number of transactions taking place.

 

The trigger seems to have been the announcement in late June by the European Enlargement Committee that Croatia will join the EU on 1^st July 2011. Moreover, it has come at a time when buyer and seller’s price expectations have begun to reach equilibrium. Furthermore feedback from our clients suggests the situation in Europe and instability in the financial markets is making little difference to their appetite to purchase. In fact some are saying it is driving them towards buying a property, as they see it as a safer alternative, at a time when it is hard to know which currency to keep your money in or which bank to bank it with.

 

With the number of real estate sales in Croatia increasing, price / value information is finally being fed through to the market. Prior to this transaction volumes were so low it was very difficult to get vendor’s to see reason since there was so little comparable data. With transaction volumes on the increase and buyers and sellers expectation now aligning, it would appear we have reached the bottom of the market for Croatian second home purchases.

 

The types of properties, Croatia property investors are showing interest in are quite typical due to the economic uncertainty. The majority, are looking for waterfront properties or heavy discounts Seaside properties have continued to see strong demand throughout the last 3 years with only a slight reduction in price. Since August 2011, interest in the apartment market has been increasing having been flat for since 2008, as well as the cheaper end of the old stone house / renovation market.

 

It remains to be seen if this rally will continue but the signs are good. Erste bank have also come to the market this summer with a mortgage product for EU citizens, which is relatively competitive and much more straightforward than previous versions. This will help to continue momentum with foreign buyers and we have had a lot of interest from clients. Several have now been through the process successfully. For more information on the Erste mortgage product in Croatia contact us.