in property has mirrored this trend with demand Overseas buyers
The demand for
for coastal properties benefitting from sea views and Residential price growth in Croatia’s coastal areas
second homes in
the beautiful port of
average property prices rising by over 300 per cent with exceeds that of the capital city, Zagreb. The historical
Dubrovnik has seen
average prices currently in the €3,200/sqm mark. port of Dubrovnik has been the focus of up-scale second prices grow rapidly.
home demand, where the limited number of properties
Holiday homes within the old city walls means prices have seen rapid
As in most CEE countries, the Croatian and growth. Historic renovations and properties with
Montenegrin residential markets are generally character are most sought-after. As a unique holiday
characterised by old and tired stock. However, destination, homes tend to generate strong rental
increasing tourist volumes have sparked a boom opportunities. Equally, the island of Hvar has been
in tourist and national infrastructure development attracting the international yachting community.
backed by EU funding. Croatia and Montenegro have The Bay of Boka has traditionally been considered
been the focus of new development, while interest in one of the most famous holiday home hotspots in
the Montenegrin market has been more recent, since Montenegro, however, limited available space has led to
gaining its independence in 2006. buyers and developers looking further south. Indeed, in
In addition to small-scale construction activity, larger the Bay of Kotor, the proposed Sveti Marko and Porto
international developers have also been drawn to the Montenegro developments will put Tivat on the global
region to construct integrated resort schemes in prime map for super-yacht marinas, with high-end amenities,
coastal and island locations. There are now a number of international luxury hotel and retail brands, and a
new, high-end hotel and marina projects in the pipeline. limited number of residential units benefiting from
marina and bay views.
Overseas buyers, particularly from the UK, Ireland,
“Housing demand
Russia and Germany, have been driving the holiday
home markets in the region. Further, Croatia and
Montenegro benefit from their central location in
in CEE countries has
Europe: rising wealth levels in other areas of CEE have
increasingly contributed to residential demand. In the
been largely driven
longer term, continued growth in second home demand
is anticipated in prime coastal locations, particularly in
by rising incomes.”
areas boasting good access and infrastructure and where
there is low supply of quality residential product. n
savills global residential review 21
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