Croatia

Croatia has emerged in recent years as one of Europe’s fastest growing holiday destinations, boasting a number of attractions from the Istrian peninsula in the north, down through the Dalmatian coast with its 1,185 islands, islets and reefs to the splendid medieval city of Dubrovnik in the south. To the property investor, Croatia is interesting primarily for holiday lets: around 10 million foreigners are estimated to have visited in 2005, generating around £6 billion in revenue. Tourist numbers are expected to grow by more than 6% a year for the rest of the decade. Property prices, meanwhile, have been growing at 20% and more a year. The Istrian peninsula, often described as “The new Tuscany”, with its traditional stone-built houses and beautiful coastline, has long been popular with Germans and Italians and is now being discovered by the British. Rovigno and Pula are especially attractive. Dubrovnik, with its walled town, steep cobbled streets, splendid squares and churches and palaces, is also popular, but already very expensive. Prices are cheaper on the coast near Zadar and Split and on the nearby islands.

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