Croatia Investment: Economy
In Croatia, buying Croatia homes for investment entails consideration of the country’s economic situation. For those looking to buy property in Croatia will find statistics that augur well for property investment in Croatia. Croatia’s economy has shown steady growth over the last few years with 4.6% GDP growth in Q2 2008. These trends are set to continue for the near future and it is generally believed that Croatia’s imminent entry into the EU will bring huge benefits to the country’s economy, and by extension, to the Croatia property investment market.
Croatia has recently transformed its economy in line with EU requirements and as a result, is now a competitive business location. Foreign direct investment is rising (figures for 2007 were €3.5 million) and several Croatian cities are favoured by relocating multinational companies. This factor adds to the potential for Croatia property investment since the demand for Croatian property will increase, driving the need for new Croatia construction.
Croatia Investment: Tourist Industry
Those considering a Croatia buy also need to consider the tourist industry, a vital component of property investment in Croatia, particularly the buy-to-let sector. Croatia’s strategic position means it is in easy reach for millions of visitors. Low-cost flights have increased the country’s attraction as a holiday destination and in 2007, Croatia received 11.2 million tourists. The government is well aware of the importance of its tourist industry and is currently making vast investment in tourist services as well as large-scale improvements in road and seaport infrastructure.
Croatia Investment: Property Market
The market for Croatia properties is booming and according to several analysts, investors looking at property for sale in Croatia can expect to achieve some spectacular gains – predictions forecast rises of between 100% and 150% over the next 3 to 5 years. Croatian property on the coast saw an increase of 13.4% in 2007 and buy-to-let investors in Croatia homes can expect net annual rental yields of between 5% and 7%. Croatia’s forthcoming status as an EU member is expected to create the ideal market for a boom in Croatia land and property investment. All in all, Croatia’s economy, tourist industry and current property market combine to make this an ideal time for Croatia property investment. For more information on investment in property in Croatia, get our Croatia Property Investment Guide.
