Croatia is an Eastern European success story and a country quickly developing an incredibly exciting real estate market into which foreign investment is free flowing. As a result, Croatia has joined the Partnership for Peace Program with NATO, the World Trade Organisation and the European Free Trade Association and is now on track for full European Union membership by 2007. All of these facts alone stand to prove the Croatian government’s commitment to creating a competitive country with a successful market economy, and all of these facts have resulted in many major multinational companies relocating European headquarters to competitive Croatia.

Now add to this positive data the fact that Croatia is a stunningly beautiful country with 6,000 km of unspoilt coastline, a Mediterranean climate, mountains, lakes, forests and wildlife in abundance and a rapidly developing tourism industry, and hopefully you can begin to smell the potential! As a direct result of the foreign investment flowing into Croatia in both the business and tourism sectors the country is becoming more successful, more wealthy and more desirable as a place to live, work, invest and holiday.

It is because of this perfect combination of factors that Croatia is emerging as a European real estate hotspot with demand from holiday makers for hotel and villa accommodation, demand from second home hunters looking for everything from apartments in the major towns and cities to rural retreats in the stunning Croatian countryside and demand from expatriates and international executives for houses and apartments to let.

For property developers there are substantial opportunities available in the tourism sector with demand for hotel accommodation outstripping supply currently. For those hoping to profit from maximum short term capital gains on real estate there’s the potential to purchase off plan properties and flip upon completion by reselling to the waiting holiday and second home market. Alternatively for those hoping to derive an income from their overseas real estate investments there’s the chance to let out units to the tourism market, the local market and also the expatriate market.

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.

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.