Zagreb (Croatia) [Photo credits to Zlatan.M on Flickr]
Easier Property has been recommending people considering property as an investment to look at Zagreb rather than Croatia’s Dalmatian coastline, even though the latter has a lot to recommend it. The pluses for the coast are stunning scenery, many historic centres, lower costs than elsewhere in the Mediterranean and a relatively small number of holiday homes. Currently most holiday villas are not new build and, although beginning this summer there will be some holiday developments coming on to the market, the property market is relatively small and purchasers may run into problems if they need to liquidate their asset.
By contrast to the coastal regions of Croatia, Zagreb is the focus of attention for aspiring Croats and the city has a significant housing shortage, which King Sturge predict won’t be overcome until 2010. Prices, which averaged 2,215 euros a square metre at the beginning of 2007, are rising at 10 to 20% a year and the rental market is sound.
However, Global Property Guide does not quote rental values for the city. Dublin’s Sunday Business Post quoted rental yields of 6 to 10% in 2006 when highlighting the development by Croatian Sun of ‘garden city’ development at Santa Domenica, 15 minutes outside Zagreb. It sounds just the right of development to meet the lifestyle requirements of the city’s burgeoning middle class according to croatiansunuk.com. King Sturge’s 2007 report (pdf) forecasts that residential price increases will moderate to 5% over the next few years.