Krk island - an emerging Croatia property hotspot

The November issue of Homes Overseas magazine contained an interesting article examining the investment potential of Croatian property, specifically looking at the potential that the Island of Krk has to offer.

The article reports that property in Croatia has been rising at an average annual rate of over 11%, driven by demand from Croatian first-time buyers as well as the increasing popularity of Croatia as a holiday destination. This rate of increase is anticipated to at least be maintained, if not bettered as Croatia prepares for its mooted entry to the EU by 2009/10.

Certainly from our own experience, the Island of Krk is well placed for real estate capital appreciation compared to the rest of Croatia. Whilst the annual average property rate of increase across all of Croatia was over 11% (to the 12 months ending July 2007), the equivalent rate of increase for property in Krk was 15.5%, with the growth rate for new and nearly new apartments rising by over 19% over the same period.

As an example of the growing popularity and recognition of this area of the Kvarner Gulf, an article earlier this year TimesOnline named the “Blue Bar” beach bar in Baska, on the south-east of the island, one of the 10 best European beach bars to visit. The island also won an accolade of “Best Tourist Offering” in 2006, awarded by the Croatian Chamber of Commerce and HRT (Croatian Radio Television), whilst in 2005 the mile long beach in Baska won the award of being the best beach on the Adriatic.

Krk’s Municipal Council has over the last five years been steadily and quietly building up the islands infrastructure to accommodate growing visitor traffic, including investment in roads, utilities provision and tourism facilities. As an example of its drive to improve local amenities for visitors and locals alike, the whole of the waterfront area of the islands capital city, also called Krk, now has fast Wi-Fi access available for free, to all who wish to use it - see our post on Krk Wi-Fi availability. The free WI-FI access now also operates in the town of Omisalj, the oldest settlement on the island positioned on the north west side of the island.

This level of investment and activity in the islands infrastructure is anticipated to be maintained, certainly for the foreeable future and well into Croatia’s proposed entry to the EU.