Croatia as a Place to buy

N

Nomad1

Guest
Hi there,

I want to try and get a view on whether or not to buy an apartment in Croatia for invetment purposes, I spent a few weeks there recently starting close to Dubrovnik and drove up the coast as far as Split taking in a few islands along to way and found the place absolutely stunning, but obviously the figures need to add up.

I have looked at a few places and one development is quoting approx €2500/m2 (€150,000 for 1 bed Apt) close to Dubrovnik (10mins). Does anyone out there have knowledge of this market and have any info on:-

- Average prices per m2 in this market
- the rental market there and waht is achievable,
- Possible outlook for capital appreciation (understand this is just opinion);
- Other good areas/developments;
- legal/taxation issues.

Thanks
Nomad1
 
Nomad1 said:
Hi there,

I want to try and get a view on whether or not to buy an apartment in Croatia for invetment purposes, I spent a few weeks there recently starting close to Dubrovnik and drove up the coast as far as Split taking in a few islands along to way and found the place absolutely stunning, but obviously the figures need to add up.

I have looked at a few places and one development is quoting approx €2500/m2 (€150,000 for 1 bed Apt) close to Dubrovnik (10mins). Does anyone out there have knowledge of this market and have any info on:-

- Average prices per m2 in this market
- the rental market there and waht is achievable,
- Possible outlook for capital appreciation (understand this is just opinion);
- Other good areas/developments;
- legal/taxation issues.

Thanks
Nomad1
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The main point to make damn sure of in Croatia is the land title. This should be obvious for any property purchase but Croatia is a bit of a minefield in terms of land ownership and title issues.
 
Ive also heard that Montenegro could be a good investment - - have ben to Croatia, Montenegro and Slovenia in the recent past and would give Montenegro the thumbs up
 
Nomad, forget Dubrovnik, at those prices uo won't get the rental returns and in terms of resale it's getting harder and harder. Land title on new builds isn't usually a problem, howevre what banks own and wher the credit is going is. If you had driven on from Split you'd have found better places to look at and better prices too, though VOdice is getting a complete joke at this stage, not bad if you bought last year but since October it's silly season!

Prices now in Dubrovnik range from €1,800 to 4,000 per m2, realistic prices (local) are €1,300 - 2,000 per m2, 150,000 for a one bed is not entirely normal for a new build in th Dubrovnik region but is limited for rentals and rules out a large lump of the rental market. Ideally you'd be better off getting 2 x 2 bed apartments for the same amount (plus or minus €10,000) and make more back in rentals and have a realistic chance for resale.

On top of that your purchase is going to cost aorund 10% extra, so your 1 bed is actually €165,000 (taxes, fees etc). Appreciation in the area has topped out for a lot of the market types, it ran from 5-10% until 2005, but the last increase (taken during 2006) was 1.5%, this was from the Central Bank here. A large problem is the quality of builds and the large amount of unsold new build and swamped resale market.

I hope this is of help and not too negative, and you can be happy as I even asked my colleague before i wrote this reply, wow, planning ahead, this isn't me!

Nomad1 said:
Hi there,

I have looked at a few places and one development is quoting approx €2500/m2 (€150,000 for 1 bed Apt) close to Dubrovnik (10mins). Does anyone out there have knowledge of this market and have any info on:-

- Average prices per m2 in this market
- the rental market there and waht is achievable,
- Possible outlook for capital appreciation (understand this is just opinion);
- Other good areas/developments;
- legal/taxation issues.

Thanks
Nomad1
Click to expand...
 
Croatia is miles better than Montenegro in my view -- but stick around Dubrovnik or in it if possible.

The big issue in this region is title, particularly in the light of the so-called "ethnic cleansing" (stealing, in plain words) of land and property during the war. Ideally you want to buy something that has been in the same hands for a couple of generations, certainly nothing that changed title towards the end of or just after the war.

Apart from the practicalities of future problems with restitution, it would not be ethical to perpetuate the wrongs that took place in that region.
 
Buying property in Croatia is a sure thing. Friend of mine bought 2 bed apartment about 2 years ago, lovely views, cost in the region of 90,000.
Went 4 a holiday there, couldn't fault it, not really a young persons place though. They say its the riviera of the future and I can see why.
150,000 seems very high for a 1 bed. You should go further (south)down the coast. The apartment is run by a nice lady who picks you up from the airport which is only 10 mins away by car. It has everything going for it.
You need to spend more time there, ask questions, be nosey,make some contacts. Croatian women tend to run everything, men a bit lazy. My friend advertised apt. on internet loverly web site with pics of views etc and is already booked up for summer months at about 600 per week. Summer season really kicks off March/April to end September. Aer Lingus flights into croatia end mid october. When we were there, we met an irish couple who had just bought and apt. and they were on their way back from Dubrovnik after signing the lease. Seems less complicated than Spain which is a minefield. Good luck.
 
Elphaba said:
Buying property in Croatia is a sure thing. ......... They say its the riviera of the future and I can see why.
. Seems less complicated than Spain which is a minefield. Good luck.
Click to expand...

With respect, that is the kind of approach that gets people into trouble. Spain is far from being a minefield, with a well regulated system of property transfer and registration. Croatia on the other hand has soem very problematic property titles resulting form one of the most bitter wars in Europe. Buyer beware applies in Croatia more than anywhere.
 
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While I agree that Croatia has more to offer than Montenegro, Dubrovnik is a day trip and nothing more, and the rental market is oversaturated and the growth in the market there is non-existent.

Title has been a large problem in Croatia up until the government began to think in a progressive wy, but ethnic cleansing has not left the minefield, it is the pattern of inheritance over generations. If anything property that was misappropriated has more clarity as there are documents, whereas the little house that's been passed on through 4 generations is normally without papers, even when the owner wishes to sell. All yu need t knw is that if it is 1/1 and tereta nema in the C section of the ownership list then you're away on a hack!



auto320 said:
Croatia is miles better than Montenegro in my view -- but stick around Dubrovnik or in it if possible.

The big issue in this region is title, particularly in the light of the so-called "ethnic cleansing" (stealing, in plain words) of land and property during the war. Ideally you want to buy something that has been in the same hands for a couple of generations, certainly nothing that changed title towards the end of or just after the war.

Apart from the practicalities of future problems with restitution, it would not be ethical to perpetuate the wrongs that took place in that region.
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nobody in their right mind would intend to perpetuate any wrongdoing
buy buying property in croatia, it is not a minfield like you seem to think it is. There are lots of new apartments being built out there, bottom line is with good contacts, good local knowledge, legal advice etc. it is a great long term investment with great returns.
 
Do any of you have a view on buying on the Istrian peninsula? Ryanair now fly to Pula.

Slim
 
istria is overpriced and undersubscribed, if you fancy going to haggle you can fight to get your price down to somewhere in the region of 1,300 per m2, which is a realistic price for there (bad winters, short tourist season, traffic jams from hell). I was in Pula last week and the airport is not so well serviced, and despite good service with Ryanair (I kid you not) it's tough to get in and out of. The current price range in Istria is such that there is a 50% mark up on the max profit price for property. For eg, on Thursday last I met with a former colleague (now working in Rijeka) to have a look at a place he bought (he's Croatian). It's a new build apartment near Pula that he bought for 1,000euros per m2 fully furnished, one of our former team-mates built the place. But the sales price began at 1,600euros per m2 after local agents stuck a mark up on it. The building and furnishing costs for the builder, 450euros per m2. Of course I was too stupid and slow to believe him when he told me about it last summer!
 
I am travelling to Pula next week then taking bus from Pula to Dubrovnik, any suggestions on how to get from airport to centre of Pula where you get bus to Dubrovnik?
 
Twiggs said:
I am travelling to Pula next week then taking bus from Pula to Dubrovnik, any suggestions on how to get from airport to centre of Pula where you get bus to Dubrovnik?
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Twiggs, my colleague did a far shorter jounrey to Knin last week and is still alive.

There are no buses to Pula centre, only taxi's, expect to pay between 50-80kunas (no more). From there you're best to catch a train connection via Lupoglav and Ogulin, arriving early morning (after a nice sleep) in Split and dinner in Rijeka. From there you can catch any number of buses south.

I drove last Saturday from Pula (came back form London) to Sibenik and it was 5 hours without taking it handy.

If yu bus it you can go direct with Autotrans from Rijeka to Dubrovnik, very very long haul. Better and more pleasant to train from Pula southj to Split, imo!
 
almo said:
Twiggs, my colleague did a far shorter jounrey to Knin last week and is still alive.

There are no buses to Pula centre, only taxi's, expect to pay between 50-80kunas (no more). From there you're best to catch a train connection via Lupoglav and Ogulin, arriving early morning (after a nice sleep) in Split and dinner in Rijeka. From there you can catch any number of buses south.

I drove last Saturday from Pula (came back form London) to Sibenik and it was 5 hours without taking it handy.

If yu bus it you can go direct with Autotrans from Rijeka to Dubrovnik, very very long haul. Better and more pleasant to train from Pula southj to Split, imo!
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Sibenik - what a hole
 
Why Noodles? Was it the architecture? Choice of restaurants? Historical sights? The proximity to everything? Clean beaches nearby? Or was it the friendliness of the people?

I used to think it was too busy until I started parking above the town and walking into the centre, okay, it was tough on the way back up, but god training!
 
God has to train? is it for the next olympics or world cup :) ?
 
hehe, funny! Good, god, well, when you are struggling with a healing ankle and figure that long walks will fix it, you're begging for god's help by the time you reach the car. Then again, most croatian figure they're god, so it's much of a muchness. Still don't know why Sibenik is a hole though?
 
Hi there,

I would just like to add something on Croatia.

I have been thinking of Croatia as a property investment for the last 12months and decided to avail of Ryanairs flights to Pula where I went to stay in Porec in Istria. So we went out there last week for a little break for a few days. I have to say the region is just fantastic... we drove up and down the coast of Istria and the resort of Rovinj was just amazing... really beautiful with lots of restaurants and Cafes overlooking the sea. Even at this time of year, the weather was about 15degrees which was quite surprising. You are also only a very short drive into some of the mountain regions such as Motivun (I think the name was) and Grovijnan. Really beautiful parts of the country.

In closing, if thinking of Istria, I would definitely say Rovinj was the nicest out of Umag, Novigrad, Porec or Rovinj. We didnt really venture around Pula so cant comment
 
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