There is something for everybody in Croatia, which is gaining in popularity among European investors, luxury home buyers and visitors.
The reasons are plentiful: 1,170 miles of glittering Adriatic Sea coastline with more than 1,200 islands; a real estate market accessible to foreigners; and a reputation for safety.
Luxurious mega-yachts—outfitted with helipads, whirlpool tubs and personal chefs—dot its world-class marinas. Sun-seeking adventurers cruise the Adriatic in 100-foot sailboats. Young couples sip the local wine and dine on some of Europe’s best seafood at trendy restaurants on cobblestone streets.
And, of course, on every street corner stunning views of land, sea and architecturally significant cityscapes greet you.
The sun rises behind Diocletian’s Palace in Dalmatia, Croatia.
getty
Croatia’s rich rich historical heritage
At the turn of the 4th century Emperor Diocletian built a sprawling palace in the Roman province of Illyria. Today the province is part of the southernmost region of Croatia.
The seven-acre complex, constructed with limestone, graphite and marble, took 10 years to build and now makes up the heart of Split, Croatia’s second-largest city. It was designated a UNESCO World Heritage site in 1979. Following Diocletian, the city was ruled at various times by the republic of Venice, Hungary-Croatia, Austria and Yugoslavia, until it became part of independent Croatia in 1992.
The country’s rich historical heritage is evident farther south in Dubrovnik, a booming port city founded about 614 by Roman refugees. It’s also a UNESCO site, with the massive walls that encircle the city, the 15th-century Rector’s Palace and the Cathedral of Assumption reminders of the city’s complex past.
The colorful tapestry of Croatia’s history is woven into its architecture and lifestyle, says Forbes Global Properties’ director Marcus Benussi. In the north, it’s common to find residents with Italian surnames speaking Italian. Along the coast, you’ll see architecture influenced by European avant-garde urban and construction trends of the early 1930s. The culinary scene, meanwhile, is generously seasoned with middle European and Mediterranean flavors.
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Luxury villas line the coast in the city of Zadar in Dalmatia.
Broker Group
Exploring the Istrian Peninsula and Dalmatian Coast
The Istrian Peninsula juts into the northern Adriatic and is home to Pula, a quaint coastal city, and the seafront port of Rovinj.
Pula is the largest city in the region and is home to Europe’s best preserved Roman amphitheater, which features intact towers and curved walls. Brijuni National Park and its 14 untouched islands are north of Pula and are reached by boat.
In Rovinj, strong Italian influences and Old World appeal are evident. Access to its old town is limited to pedestrians and bicycles, and five-star hotels and luxury shopping are plentiful. Narrow cobblestone streets line the town.
Strict regulations and a tight supply of land limit investment opportunities in Rovinj. “In the Istrian region, it’s almost impossible to find land to build on,” says Benussi. “This is what makes the market attractive. Everybody wants in, but very few manage to buy.”
Securing land on the first or second row of the seafront is a challenge, but Rovinj and the surrounding area offer lucrative opportunities.
A designer villa in Zadar features a range of amenities including a private zero-edge swimming pool. … [+] Price is available upon request.
Broker Group
Benussi notes there is a growing interest among foreign buyers in properties with small-scale farms or vineyards. Wine tourism is a major boon to the Istria region, attracting well-heeled individuals keen for a taste of the local malvazija and merlot.
The Dalmatian Coast captures most investors’ attention right now. Croatia’s southernmost region begins in the city of Zadar and stretches south to Dubrovnik, the “Pearl of the Adriatic Sea.” It also includes the islands of Hvar and Brac, playgrounds of the rich and famous.
This narrow stretch along the Adriatic Sea has cliffside mansions, charming old stone houses and opulent villas with panoramic views. Real estate prices in this coveted region are growing steadily, with local and international buyers hoping to own a slice of land in the booming coastal region.
Trophy properties on the coast are scant, and anything that comes on the market gets snapped up in “days,” Benussi says.
For US $1 million, you can “live like a king,” he adds.
Olive trees surround a private villa on an uninhabited island near Zadar.
Lidija Lolic | Broker Group
Living in Croatia
The shimmering blue water of the Adriatic Sea offers more than just jaw-dropping views. With currents that flow upstream, the water is much warmer and saltier than it is along the Italian coast, on the opposite side of the Adriatic, Benussi says.
Croatia’s unique cuisine blends influences from neighboring countries and showcases local seafood, black truffles and rich stews. Its locally produced olive oil, cheeses and wine are among the best in Europe.
Much of Croatia’s economic activity is linked to tourism. An estimated 50 million tourists are expected in 2024, with forecasts estimating nearly 60 million tourists in 2029. That’s largely because Croatia in 2023 joined both the eurozone and Schengen Area, meaning it has adopted the euro and allows many Europeans to enter the country without requiring border checks, respectively.
The two-villa compound features a central swimming pool that overlooks the coast. It also comes with … [+] private docking and three boats.
Lidija Lolic | Broker Group
It also means European Union citizens can purchase real estate just as Croatian nationals do. For those who live outside the EU, purchasing real estate in Croatia is possible if two conditions are fulfilled: a reciprocity agreement with the republic of Croatia and consent of the Ministry of Justice.
Many Croatians feared that the official introduction of the euro would decrease their purchasing power and lead to an increase in the cost of living. The country has been grappling with an inflation rate upward of 5%, with expectations of a slowdown in price hikes this year.
Benussi notes that the effects of the currency transition are becoming evident. There has been an increase in European interest in Croatian real estate, which has led to prices rising in the short term.
Data from the Croatian Bureau of Statistics reveal that GDP grew 2.8% in 2023 and 4.3% in the fourth quarter, surpassing analysts’ initial expectations. The latest uptick marks the 12th consecutive quarter of growth in GDP.
“Croatia will very soon become a strong economical power,” Benussi says.
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
