Croatian property | real estate Croatia | property in Croatia

First Blog

Buying Croatian Property In A Culturally Protected Area

Date posted: 23.03.2010.

There is one other very important piece of information that one must be aware of when purchasing Croatian property that is located in a culturally protected area. As a buyer you do not have the right to purchase the property until it has been offered for purchase to the local council, county council and Republic of Croatia. The law states that each institution must confirm its intention to purchase within 60 days from receipt of the vendor's confirmation that the property is for sale. If none of the institutions correspond within the given period then they automatically forfeit their right to purchase and you can legally buy the property.

In most cases a pre contract is signed with a deposit paid onto an approved third parties account with completion 14 days after having received confirmation from all three institutions that they do not intend to purchase or after the 60 day period has passed, whichever is sooner. Please note whilst this is a necessary process, it is extremely rare for any of the institutions to take up the offer to purchase Croatian properties in culturally protected areas. They do not have need or the means to do so. However, the procedure must be followed since failiure to do so can result in the Croatian property purchase contract being cancelled with you left responsible for getting your money back from the vendor.

Cultural Heritage & Your Croatian Property Planning Application

Date posted: 24.02.2010.

If you buy a property in Croatia that is in an area that is under the protection of the Cultural Heritage and you intend to renovate the house or make exterior changes to it, you must seek permission from the county Cultural Heritage department as part of the Croatian planning application process.

Many old towns in Croatia are protected and in some cases individual properties, with different rules applying to both. Clearly protected Croatian property comes under closer scrutiny than Croatian properties that are not directly protected but are located in a culturally protected area. The purpose of this article is to outline the procedure relating to property in Croatia that is not directly protected but located in a protected area. Furthermore for the purposes of this article we will assume the county in question is Split Dalmatia.

So when is it necessary to seek permission from the Split Dalmatia County Cultural Heritage Department ? Generally speaking if you buy a property in Croatia or more specifically a property in Split and it is in a protected zone and you intend to renovate it and in doing so make changes to the interior, be that knock down walls, put in new electrics, plumbing, sanitary equipment, windows or do anything else to the property that constitutes a change to the existing structure, you are supposed to get the permission of the Split Dalmatia Culture Heritage Department.

Some people don't but for foreigners buying property in Croatia it is highly advisable to do so. In fact in not doing so you are potentially breaking the law. For some reason when foreigners buy property in Croatia they sometime leave their common sense at home. The question to ask yourself is how would i approach this if i was at home ? For anyone from a western european country the answer is to follow the appropriate rules and regulations and employ the necessary professionals to help you do so. But for some reason some people seem to think that small changes to a property in Croatia will go unnoticed and having bought their dream home in Croatia can't live with the idea that in fact what they thought they could do or in lots of cases were told by their agent they could do, might now not be able too.

However, in not following the necessary procedure you are leaving yourself open to a lot of hassle & unecessary cost, and in some cases possible prosecution. This is especially true of the Croatian island property where small communities are prone to gossip especially during the winter period and it is highly likely you would get a visit from one of the relevant authorities be that the Split Cultural Heritage Department or the building inspector during the construction process. If you cannot provide the necessary documentation to validate the works being undertaken they can shut down the site with immediate effect. They will then ask you to either legalise the works prior to starting again or knock down and remove what you have done so far, if legalisation is not possible. To legalise the building works you will need permission from Split Cultural Heritage Department, as well as the local Croatian planning office.

So at what point do you apply for permission from the Split Cultural Heritage Department ? This is always done at the beginning of the process by your architect who supplyies the relevant department officer for the area in which your Split property is located with your intended project. If you are doing basic renovation and modernisation to your Split property, which includes rearranging the interior of the object, knocking through walls, putting in new bathrooms, new joinery, electrics, plumbing etc then it is, in most cases, not necessary to contact them prior to submitting the project. However, if you intend to do anything that constitues a change to the existing structure with particular regard to the buildings outside appearance then it is essential they are contacted and consulted prior to submitting the Croatian planning application.

The sort of things that area deemed to be contentious when reconstructing your property in Croatia are; raising floors, opening new windows or doors, lifting the roof, demolishing existing walls & swimming pools. There are others but these are the most common. It is always best to ask your Croatian architect to have a preliminary discussion with the Split Cultural Heritage Department during the initial design phase. This should save you time and money. If they raise objections you are then able to negotiate, trying to find some middle ground, with your architect producing creative solutions to their objections. This can take a little time but is the most agreeable path. Having said that do not expect any major deviations in your favor, the rules & regulations are strict and it is unusual to get away with anything that could be deemed to be out of the norm. One things for sure there is very little point submitting the application and hoping for the best.

How important is the Split Cultural Heritage Department to my Croatian property planning application ? They are extremely important since the planning office is very unlikley to approve an planning application without the permission of the Split Cultural Heritage Department. In fact, for applications in relation to the reconstruction of old stone houses located in protected areas, their approval is tentamount to being given permission to build. Of course the subsequent planning application must be made to the relevant Croatian planning authorites. Moreover, all the necessary and valid documentation relating to your property in Croatia must be provided. Also, it is important to understand the situation regarding your neighbors who do have the right to object, although they must have valid grounds in order to do so. However, assuming the documentation is in order and there are no complaints from the neighbors then your application should be processed without delay.

How long does it take the Split Cultural Heritage Department to give their approval ? In general, although it does depend on the complexity of the case, they give their approval within 30 days. If they have been consulted prior to the application being made and any necessary changes made to the project in accordance with their wishes, then there is very little reason to slow the process down. It is a simple case of them issuing the necessary approval document.

What are the chances of having your application rejected by Split Cultural Heritage Department? For basic renovation of your property in Croatia with only interior changes the chances are very small. If you are making changes to the exterior this is a different matter. As mentioned previously to avoid problems it is always best to consult with Split Cultural Heritage Office prior to putting in your application. In fact if you are buying a property in Croatia that is in a culturally protected area and your property purchase is dependent on being able to make changes to the exterior, it is a very good idea to get your Croatian real estate agent to put you in contact with a Croatian architect who could make some preliminary enquiries. Clearly it is not necessarily something a real estate agent will want to be exposed to since it could affect their sale. However, unless you have an initial opinion you are open to possible limitations regarding the redevelopment of the property which could affect both your possible enjoyment of it and ultimately your purchase decision.

In summary there is no hard and fast rule regarding the process of obtaining Croatian Cultural Heritage approval for your planning application to renovate or reconstruct your Croatian property situated inside a protected zone. The key is to do your research, ask questions and make sure that if the real estate is in a culturally protected zone, that you make contact with the relevant cultural heritage office to speak to a representative before you make your purchase decision.

Split Property - How Much To Pay For Property In The Old Town

Date posted: 20.01.2010.

As a general guide the price of property in Split old town is on average somewhere between €2200 to €3000 per m2 for a period stone property depending on location and condition. However, 99% of Split properties located in the old town require complete renovation of the interior, most need exterior touching up and a few need structural work to be carried out. Moreover, due to the location of the properties in Split old town they are under cultural heritage protection. The Split Cultural Heritage Department must be consulted and give permission if you intend to renovate, even if you only want to restore the property without making any changes to the exterior.

It is important to consider the cost of renovating your old stone character Split property when making plans to purchase. For arguments sake the renovation will usually require the following but is not limited to; new electrical and water installations; joinery; tiling; plastering and painting. Moreover for the purposes of establishing a comparative price we will assume a standard kitchen is put in. However, furniture is excluded and we are assuming there are no structural works or works to the roof required. With this in mind you are looking at €350 per m2 for a standard finish, €500 per m2 for a quality western standard finish (4 stars) and upwards for anything better. Obviously it all depends on materials and equipment you want to use to renovate your old stone property in Split, so these prices are only a guide.

In addition to the construction price, it is important that you make an allowance in the budget for the management of your Split property project. This assumes you are not prepared to oversee the works and get the necessary permissions from the relevant authorities yourself. When hiring a project manager ideally you need someone who can be your construction supervisor and your project coordinator. It is important to note that the co-ordination aspect is often overlooked by foreign buyers who will be managing the project remotely. The coordination can take considerable time and effort when liaising with someone abroad via phone & email, if mistakes are to be avoided. It is also vital you have someone who really knows what they are doing in relation to the construction management and it is advisable to make sure they are certified by the relevant Croatian chamber, be it an architect or engineer.

There are other possible costs too, notably an architect should the buyer wish to have plans drawn up and a land surveyor who must validate the size and position of the property with the cadastral office prior to it being sent to the Department of Culture Heritage in Split and then the planning office. If we assume the apartment in question is 100m2, fees could end up around €150 per m2 for a decent land surveyor, architect and qualified project manager / coordinator.

So let us say you find your Split property for €2500 / m2 and it needs renovation but no structural works. For this price one would expect to find something in the Diocletian palace in the centre of Spit old town or very close to it. But you will need to be persistent to get something decent for that price. Furthermore let us assume it is 100m2 and you are renovating it to a good standard or 4 star equivalent. Therefore it would cost €500 per m2 for the renovation, plus the VAT which is €115 per m2 (23%), add on your fees of 150 €/m2 gives you €765 per m2 plus the cost of the object at €2500 per m2, which gives a price of €3265 per m2 for a completed object. You then need to furnish your 100m2 Split apartment, and to do so to a good specification you will need to spend €20,000 upwards. If we assume you spend €20,000, this equates to €200 per m2 for our 100m2 apartment. Add this to our existing €3265 per m2 and you end up at €3465 per m2.

So to summarize to purchase a Split property in the old town you will need to spend between €2200 & €3000 per m2 dependent on location and condition, but you should assume it will need complete renovation as a minimum for this price. You will then need to spend €800 per m2 upwards to renovate it to a good standard which includes the cost of construction & professional fees. Furthermore, for a 100m2 you will need a minimum of €200 per m2 to furnish it. Therefore to renovate and furnish your Split property you are looking at €1000 / m2. If you add this to the initial purchase price, you are looking at between €3200 and €4000 per m2 for a well renovated Split property in a good location either inside the Diocletian Palace or close to it.

It is important to note purchase prices can vary wildly, in particular offer prices verses actual prices paid. Properties in Split old town are no different. This article is purely intended as a guide and a possible starting point for people looking to buy property in Split. Obviously, it is essential if you do intend to buy property in Split you do your research before making any financial commitment.

Why Invest In Property In Croatia 2010

Date posted: 18.11.2009.

Croatia has a tranquil beauty rarely found elsewhere in Europe today. A unique combination of beauty & style creating an intoxicating mix that is hard to beat. The countries stunning natural beauty, largely un-spoilt natural habitats, more than 1500 islands and 5835km of coastline make it a heavenly place to visit or stay.

Many of those who purchase property in Croatia are seeking a so called lifestyle home abroad. They are typically looking for a holiday home that doubles up as an investment and they are lured to coastal living. They have been encouraged by their own experience as a tourist in Croatia, enjoying the rich diversity of history & culture, natural beauty, weather and laid back Mediterranean lifestyle. Moreover, with the forecast growth in Croatian tourism and pending European Union entry they perceive the country as a good medium to long-term property investment with rental income at a minimum covering costs and capital appreciation giving a solid return.

So why invest in property in Croatia? The following are key reasons why Croatia is a solid medium to long-term property investment opportunity:

Croatia hosts some of the most alluring and desirable locations to own real estate anywhere in Europe today.
Culture, history and un-spoilt natural beauty.
Expected to join the European Union in 2012.
Harmonization of economic and political policy in accordance with leading international institutional requirements European Union, IMF, World Bank, World Trade Organisation & Nato.
A government that is committed to fighting corruption, modernizing its judiciary and streamlining its administration.
A favorite tourist destination with the World Travel & Tourism Council placing Croatia in the top five countries globally for tourism growth over the next 7 to 10 years.
Tight planning controls restricting development of property in Croatia, especially on the coast.
A restricted supply of real estate in Croatia which in turn helps to support prices.
Stable currency linked to the Euro.
Property in Croatia is relatively inexpensive compared with established European destinations.
Considerable and consistent foreign investment in Croatia over the last decade.
A solid domestic mortgage market.

Perhaps the most significant of the above is the countries accession to the European Union which, with the border dispute between Slovenia and Croatia now in arbitration, is expected to happen within the next 2 to 3 years. Apart from the package attached with European Union accession namely judicial reform, financial support and policies to help safeguard foreign investment in Croatia and all of which will encourage inward investment in Croatia, we believe its timing will coincide with a global economic recovery. In doing so the Croatian property market should receive a double whammy, which in turn should drive both demand and prices for property in Croatia.

In conclusion purchasing property in Croatia should be on the list of any discerning real estate investor looking for a good medium to long-term investment opportunity or holiday home buyer looking for a beautiful un-spoilt coastal location in which to own a second home. With pending European Union entry and global economic recovery imminent, owning property in Croatia will once again be at the top of the list of investors from across the globe.