More and more foreigners are buying holiday and second homes, but Croatia’s potential isn’t as high as it could be.
As Poslovni Dnevnik/Marija Crnjak writes on the 12th of February, 2018, the growth of tourist traffic and the overall strengthening of Croatia’s potential has been revived in the last couple of years by the so-called “second home” market, with more and more foreigners buying real estate, and with more and more investors choosing to invest in Croatia’s tourism.
Due to the still high seasonality and poor availability, as well as the wonders of complicated bureaucracy and high tax rates that the country is infamous for, Croatia is still at the bottom of the list when it comes to the most desirable “second home” destinations in comparison with other Mediterranean countries, according to research by the Savills global agency based in the United Kingdom of Great Britain and Northern Ireland, to be presented this week at the Adria Hotel Forum investment conference.
Although they see growth in demand for attractive projects in the “second home” segment, property agents who deal with and specialise in the field of foreign buyers point out that the Croatian market is still relatively young when compared with ”old masters” such as Spain and Portugal.
“Success depends on the combination of conditions in a particular market, from the political, economic, and tax stability of the country, to tourist achievements and benefits such as Golden Visa programs that offer investors citizenship in return for their investment(s). Property that is easily available for things like weekend travel [is also desired], and these two items are some of the main problems for the Croatian market, as well as the markets of Greece and Montenegro,” explained Business Development Manager Alexandros Moulas, Director of the Saville Development Sector.
In addition to Greece, Croatia is at the bottom of the second home buying scale, partially due to the amount of VAT, which significantly increases property prices, unlike Cyprus and Montenegro, which, with the aim of maximising the opening up of their respective offers to foreign investors, have lowered taxes and represent the rising stars in the Mediterranean.
