Croatia Presses Ahead for 2013 EU Entry - Invest Now?

Croatia's lengthy negotiations to join the EU were finally concluded June 30 after just shy of 6 years (talks started October 3 2005). According to experts on the issue, this makes July 2013 a likely timeframe for Croatia to become the 28th member of the European Union. We all know that EU accession has a tendency to bring fantastic growth to property prices, so, with this now on the cards for Croatia should property investors one and all be booking flights to this Adriatic paradise?

Normally my answer to that question would be an almost unequivocal yes, but in the case of Croatia it is a yes with caveats.

What Makes Croatia Different?

Croatia has already had a day under the impeding-accession-sun. Everyone expected Croatia to achieve membership by 2008. As a result investors poured into the country thinking that this was their chance to make the gains seen by those who had invested in Estonia, Bulgaria and Ukraine as they headed for accession.

This caused prices to grow rapidly, and then the market suffered when Slovenia blocked Croatia's accession on the grounds that the agreement could be prejudicial to their dispute over borders. Its suffering was compounded by the international financial crisis.

Prices rise on EU accession because prices in the countries that are joining are usually much lower than the rest of the EU, and there is a natural balancing process of as people flow to and fro across the borders renting, buying and selling property. But Croatian prices are not that much lower than the rest of the EU because of the escalation already seen.

And it Still Might Not Join This Time

Even after Croatia signs the accession treaty, and if it is signed by all member states (including France and Austria), the Croatian government is putting it to a referendum. The Croatian people are a predominantly disillusioned bunch right now, and a lot of this is directed at Europe. However, most analysts agree that they are far more likely to vote yes than no.

What, So We Shouldn't Invest Then?
To say that we shouldn't invest in Croatia would be foolhardy; in fact we can't even say that the opportunity is less significant than it was in 2007. Like most of Europe, Croatia property prices have crashed. The tourism sector didn't fare too well either, but things are picking up now. Global tourism is once again growing, the global population is growing and no one likes an overcrowded beach, even if it is on the Mediterranean coast. Thus more and more tourists are spreading out from the hotspots causing continually rising tourism in places like Croatia.

As I always say and especially now, property investments should be looked at on the strength of individual opportunities, not countries. If you can get in and buy a top quality villa on the Mediterranean Coast at a bargain basement price it will enjoy rising occupancy as the tourism market grows. Buying at a low price into a property with rising yields makes it a near certainty that it will grow in capital value as well.

Article supplied by Liam Bailey on behalf of Novrealty, an overseas property agent with a difference; a company focussed on making buying property abroad as easy as it should be.



Villa nestled in the hills with view to Oprtalj







Nowhere is the former Italian influence so obvious as in 'Portole' (now: Oprtalj). This villa is located on the hill just across. The owner has not yet offered this house to any other agent, giving you, as our client, a unique opportunity to purchase one of Istria's most beatifull villa's. The garden in front of the house disappears in the hills' horizon, leaving an unblocked, majestic view to the 'Tuscan' town of Oprtalj.


The price is very low for what is offered: The villa is accessed from the gate, and a driveway leading to the garage + tool room. Next to the garage is the large living-kitchen. A corridor leads to the down stairs study, that can also be used as TV-room or guest room. There is a bath room with toilet on the other end of the corridor. An outdoors patio with very large massive wooden dining table offers outdoors dining in the shade with that immense view over the valley and Oprtalj. Upstairs are two more bed rooms and a second bath room. A terrace and small fountain in front of the house flow over into a meticilously maintained lawn that stretches all the way to the edge of the hill. Build with the highest of material standards, includes an alarm system. Nearest neighbour: 120 mtr away down the hill. Distance to the sea: 18 km.

Asking: EUR 230.000, we advice an offer of EUR 200.000

unfortunately these pictures were made with no clear sky conditions. However we wanted to just photograph the house and send it out to our clients as quick as possible. Once you are here, and standing in the garden, you will understand the true value of this house.

Call us to arrange a viewing: +385(0)21770701
see more contact details here


driveway that ends at the villa

from the back of the villa, towards Oprtalj

from the garden with the fruit trees, towards the house

from the back of the villa to Oprtalj


the garden on the richt of the house, with left: the patio


Oprtalj

Novigrad, the nearest seaside city: with its historic and new part an ideal destination for shopping

photo taken from the road to Oprtalj, in the middle-right is the villa

Novigrad

a villa nearby Oprtalj: this area is received as the Tuscany of  Croatia, with splendid rental villa's that make this region a world-class destination

Porec, one of Istria's largest cities

view from Oprtalj to the surrounding hills