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Croatia in EU - big changes for the benefit of all








As it is well known, since its independence, Croatia  has worked on the project of joining  the European Union. Croatian path to the EU was not so easy - the struggle for independence, the transition from socialist system to capitalism, material and spiritual renewal, adjusting to the appropriate rules of the EU... 

The very process of negotiations with the EU was the most rigorous to date. In some ways  - that is good. Croatia is an example of the best prepared new member, of all the countries that joined EU, during all enlargements. Therefore, the attitude towards Croatia - in current member states - is very positive. When in any EU country the name Croatia is mentioned, it immediately reminds one positive story, one with positive energy. And not just because it is a naturally beautiful country, as Croats praise it in their hymn.

Property in Croatia


There are a multitude of analysis - which are trying to come up with an answer - why is it useful to join the EU.  So - ideologists and strategists descript EU as a group of states and peoples - who share common values. We could define those values as Judeo-Christian in its roots - followed by all those processes that have changed Europe during centuries - renaissance, enlightenment, imperialism, communism, liberalism, etc. When we know that rivers of blood have flowed in many wars in Europe - of course - it is a great value that our continent is experiencing quite durable peace.

Especially in our region, which has had a traumatic conflict - we need to find ways to live next to each other, to cooperate... It turns out that an organization such as the EU - has a solution for building good-neighborly relations and lasting peace. Certainly for Croatia - it is very important to have stable and prosperous neighboring  Bosnia and Herzegovina, where Croats are constituent people - but also other countries in our neighborhood, such as Serbia.

Property in Croatia


After complicated chanting about the overall meaning of the EU - the "little man" is surely asking about specific benefits or losses, that Croatian accession to the EU will bring... He asks - will joining the market of 500 million people threaten my job ... perhaps my company will do business much easier on so big market... will my sweating result in higher wages ... will the ruthless competition result in dropping some prices... will there be a rise in some prices - such as real estate...

Property in Croatia


Croatian authorities and the media are continually making great efforts to make the public familiar with the details of the EU. So - many people think that Croatia is ready for the currency of the European Union - Euro. Of course - it certainly will not happen in many years to come.

Since we are dealing with real estate - we will present views on how Croatian accession to the EU will affect the real estate market.

real estate Croatia


We are fully confident that we will see a growth of real estate prices in Croatia - especially of those at the Adriatic Sea. It has to be known - when we are talking about the topic of real estate in Croatia - there are two separate worlds there. The reasons for the demand for real estate in continental Croatia - and the reasons for the demand at the Adriatic sea - are completely different. Therefore, we do not look at the individual fairy tales of "real estate experts" and government advisers, who have in mind mainly the situation in Zagreb.


The situation there - has almost absolutely nothing to do with developments in the real estate market at the Adriatic coast. Real estate market at the Adriatic Sea and its vicinity - is strongly influenced by demand of foreigners.

real estate Croatia


Croatian accession to the EU creates a powerful psychological effect in minds of many citizens of the EU. Although EU citizen can buy property in Croatia already for a long time - without any special procedures - the fact of Croatian accession to the EU creates a sense of greater security, among many Europeans. Since joining the EU - Croatia is for them a safe country with a low level of corruption, with a low crime rate, with clear financial rules, there are no physical boundaries, etc. You can think yourself - does this psychological effect makes sense, we think - it does...

Anyone who has seen coastal Croatia - clearly understands - there will always be people who will fall madly in love with this natural beauty. Higher quality males will try to ensure their females at least a little nest, to raise their kids there. Or at least make occasional visits. Or to relax - after a hard day in grey European capitals. Someone will bring friends, business partners,
lovers - who could know what kind of reasons there are - to come to beautiful Croatia...

real estate Croatia


Next - if a foreigner wanted to buy a property in Croatia, it was nearly impossible to get a loan in banks operating in Croatia. After the EU accession - EU citizen can request a loan in a bank in Croatia. Will some Croatian bank approve a loan - of course depends on the creditworthiness of loan applicant. This is a significant change.  From our own experience, we know some EU citizens, who didn't buy property in Croatia - because banks in Croatia would not even think of giving them a loan.

At the same time in countries like Portugal, Spain, southern France, Italy, Malta - local banks are offering EU customers the full range of loans. We are confident that banks in Croatia will soon begin offering loans to citizens from other EU countries.

real estate Croatia


Speaking of banks operating in Croatia - we are confident - they will soon undertake significant changes. When giving loans, banks in Croatia were asking for such collateral, characteristic for colonial banana states. Also - we remember terribly high interest rates, which are also now unreasonably high - in comparison with other EU countries. While the interest rate on long-term housing loans in Denmark lays below 4%, banks in Croatia have EIR over 10%.

There is no logic. Banks in Croatia earn disproportionate extra profits. Their behavior could have been affected by the government - however it is not, because the government is borrowing from the same banks. That time is changing - you can soon expect much lower interest rates and better terms, especially after entering a number of Russian banks on the Croatian market.

real estate Croatia


Banks will offer long-term housing loans at interest rates of  3-6%. Also - as they do in their home countries (France = Splitska banka, Zagrebacka Bank and PBZ = Italy, Erste and Hypo = Austria, Volksbank = Germany / Russia etc) - banks will offer such loans for which the borrower returns only the interest. Principal will be returned back at once, when the time of the loan expires.

real estate Croatia


We should not forget significant number of Croatian nationals living abroad, who are attracted by the fact that Croatia is in the EU. Surely this fact attracts many citizens of the former Yugoslavia, who have no major problems in buying properties at the Adriatic. Croatia in EU is also an interesting destination for many Russians and Ukrainians.

Summa summarum - European Croatia attracts even more people who want to live in a warm climate, with blue skies, sunny weather... So - the demand for real estate will increase, and thus the prices as well.

real estate Croatia



When we look at real estate prices in those areas of Europe, which may be compared with Croatia - there is a big dissapointment. You can look at real estate prices in the south of France, the  area of Cannes and Saint Tropez. Or  prices in Italy. Look at the prices of  real estate in Monaco. So - 10 to 20 times more expensive than in Croatia.

Why? For sure - 99% neutral observers will always say that the Croatian coast is much more beautiful - than that of the south of France. There are no island there at all, until Sophia Loren didn't start visiting Nice - there were no tourists at all, their beaches are crowded by tourists and covered Arab women. But OK - they have become what they are - and that's it.

Prices in Croatia, at the Adriatic coast, are too low. We clarified some reasons why there exists an increased demand for properties in Croatia - which is resulting in a rise of prices. If you have some money or if you can obtain a loan - certainly we advise you to buy some real estate in Croatia - because your Adriatic goldfish will bring both - happiness and profit.

real estate Croatia