News

Croatia poised to join EU

Sarah Kendell — 01/07/2011 11:12:00

The former Yugoslav nation of Croatia has wrapped up its accession talks with EU officials, and should become the Balkans' first member of the bloc by mid-2013, a move that is sure to boost values for property owners.

As the last round of discussions came to a close yesterday, EU Enlargement Commissioner Stefan Fuele said the body was pleased with Croatia's efforts to reform its economy and political system since it broke from Yugoslavia. "In 20 years of independence, Croatia has changed tremendously", Fuele told reporters in Brussels. "It has made impressive progress in meeting EU membership criteria. Today, this has been rewarded."

The next step for the country is the signing of an Accession Treaty, which will be drawn up by the end of this year. It will then have to be ratified by all 27 existing EU member states before Croatia can officially become part of the bloc on its planned accession date, July 1, 2013.

The most progressive of its surrounding Western Balkans neighbours of Montenegro, Serbia and Albania, Croatia previously sought to join the EU back in 2009, but its accession plans were blocked by Slovenia due to a border dispute between the two countries. For property investors who bought in at this time expecting the country to become a member, Croatia's new progress comes as extremely welcome news, while buyers after a holiday or investment property in an emerging market would do well to consider the nation. The huge economic injection Croatia should receive in EU subsidies once it joins, combined with the international clout EU membership will bring, is sure to boost tourism and property values.

Interested in property in Croatia?
Browse our listings of apartments, houses and other properties in Croatia here: http://croatia.themovechannel.com/property/all/

Rotation, rotation, rotation

Catherine Deshayes — 23/10/2009 12:17:00

As hotels and resorts come up with ever more creative ways to lure in that sought after tourist dollar, the little-known island of Solta in Crotia has bypassed the location, location, location spiel and gone straight for rotation, rotation, rotation, with plans to open Europe's first revolving hotel...

A rotating hotel is to form the centrepiece of a new resort near Split in Croatia. The tiny island of Solta will soon have a major tourist attraction which will bring much needed foreign money into Croatia's economy, which has been hit hard by the credit crunch.

A team of award-winning British architects from Studio RHE have designed the groundbreaking hotel, which will allow guests to enjoy views from every angle and an ever changing scene outside.

The luxury hotel will have 50 suites and the slow nature of the revolutions means that guests won't feel the building turning atall, let alone get motion sickness.

The Šolta Island Resort will use the expertise of shipyard engineers from the nearby Croatian city of Split to build a turn-table that will slowly rotate the hotel. It is £70 million project and completion is slated for 2012.

Architect Richard Hywel Evans from Studio RHE said, "The building is entered from below at Lower Ground Level which does not rotate.

"The 22-metre diameter centre hub of the building is also static and this contains the Reception, circulation stairs and lifts."

The hotel will be built in the middle of a man-made swimming lake set into the hillside with olive groves nearby. The suites will be built on three levels and will spin 1.3 times daily, offering different views of the Adriatic. There will also be a luxury marina, spa and private villas.

"We believe this is a stunning example of how creative, exciting and bold design can and should be," said Mr Evans.

"In the case of Šolta Island the need was simple - every guest should be able to enjoy the breathtaking view and our rotating design provides just that," he added.

Croatia's confidence boost

Jaimie Kanwar — 24/02/2009 10:55:00

The property market in Croatia has been given a major confidence boost following a change in legislation this month...

That's according to one expert, who believes that allowing non-Croatians to purchase property with the same rights as Croats is a big step in the former Yugoslav republic gaining European Union (EU) entry.

Andrea Marston, UK manager of Investment Group Croatia, a local real estate firm, commented that while it was too soon to see any impact, the long-term forecast was that it would encourage foreign property buyers.

She said: "If you're in the EU it is very straightforward now. You don't need to get any permission, so it's very similar to buying property in the UK now.

"It shows that Croatia is serious about joining the EU and about making improvements to its property market, so it is a big boost to confidence from that perspective."

Source: www.axiafx.com

Croatia investment restrictions lifted

Catherine Deshayes — 26/01/2009 13:24:00

Traditionally, international investors have not been permitted to buy property in Croatia, but, from next month, all that will change and foreigners will be able to buy homes on the same terms as local Croatians - something which should provide a huge boost to the property sector...

Croatia has been a candidate country for EU membership since June 2004 and its negotiation to become the 28th member of the European Union could be complete next year.

This, along with the Croatian Government's decision to open up the property market to foreigners is likely to increase international demand for Croatian property, and potentially drive property prices right up.

Currently, only Croatians can buy land and foreigners can only buy flats and buildings - hence the sky high prices for old style houses in popular holiday spots. When you purchase a property, you are buying the house and the right to re-build it, not the land it stands on.

Furthermore, potential buyers from some countries have, up to this point, only been permitted to buy property in Croatia by forming a company and even then, this would be subject to reciprocal rights being issued to Croatians to buy property in the would-be buyer's home country.

Foreigners have always found it hard to secure permission to buy homes in Croatia. Since early last year, the Croatian authorities have only given to go-ahead to around 3,600 overseas applications out of almost 8000, which is a low approval rate. But that is all set to change.

From next month, overseas nationals will be permitted to buy property in Croatia on the same terms as local Croatians, although the existing restrictions placed on buying agricultural land and forests will not change.

These new changes look to drastically alter the second home and investment market in the country. Those seeking a holiday home are drawn mainly to the coast, for the stunning views and strong rental potential.

Whilst prices look set to rise further, the cost of living in Croatia remains affordable and the quality of life on offer is very highly regarded.

You are unlikely to be able to make a wad of cash by turning a property around and flipping it back on to the market in Croatia given the current economic climate.

That said, Croatia remains downgraded because of its pre-EU status, meaning it could witness a strong upward price swing in the medium term again.

Due to its climate, improving infrastructure and healthcare standards, Croatia is also becoming very popular with retirees.

EU and me

At the end of last year, Olli Rehn, the European Commissioner for Enlargement, gave a positive assessment of Croatia's prospects of EU membership.

Rehn said that membership talks with the Croatian Government could be wound up by the end of 2009 and they should be looking at membership by the end of 2010 or early 2011.

But, despite these positive noises, Croatia still faces obstacles to its goal, including a territorial dispute with neighboring Slovenia, which, as an EU member, could obstruct Croatia's negotiations.

Slovenia has vetoed the opening and conclusion of a number of areas in Croatia's entry talks over the 17-year-old dispute which involves a few slivers of land and a stretch of sea border on the northern Adriatic.

But now, it looks as though Slovenia could unblock Croatia's EU accession talks within a few weeks if there is agreement on mediation suggested by Brussels to solve a border dispute. Croatia wants the dispute settled before the International Court of Justice in The Hague.

Picture by Fred Jala

Just EU and me

Catherine Deshayes — 12/12/2008 12:46:00

The European Union is having a busy time of it - Montenegro has announced its intention to apply for full EU membership next week and Iceland is tipped to make an application for entry as early as next year...

European Union (EU) Leaders are holding a summit today, Friday December 12^th, to discuss further enlargement.

Enlargement Commissioner Olli Rehn said, "We are mentally preparing for a possible application by Iceland as clearly there is movement in the country."

Up until this point, the country had always been content with its non EU status, but it has begun to reconsider its position after being hit hard by the financial and economic crises, which has caused widespread unemployment across the country.

As Iceland is already a member of the European Economic Area (EEA), its entry into the EU may well take place more quickly than normal. Icelandic Prime Minister Geir Haarde has set up a commission to consider the possibility of EU membership, declaring that his country could start EU talks ‘under the right circumstances.'

Enlargement Commissioner Rehn said, "There are no shortcuts to EU accession, but if Iceland decided to apply for EU membership, negotiations could be wrapped up swiftly, possibly alongside those of Croatia, who is also applying for membership of the EU.

Mr Rehn added, "I feel sympathetic for the Icelandic people, I feel solidarity with them and I would expect that after this problem, related to banking deposit guarantees, is settled, no member state will be opposed to Iceland moving toward the EU," he added.

If Iceland does decide to plow ahead with its EU membership entry, its existing EEA membership would put the country in a position to compete with Croatia to become the EU's 28th member.

Commissioner Rehn said, "The timeline of Croatia or eventually Iceland depends on the negotiations and the implementation of EU legislation."

Meanwhile, Montenegro's (pictured) Government announced that it would be submitting its application for EU membership next Monday, December 15^th.

The country's Prime Minister Milo Djukanovic, said, "We are trying to agree on a compromise in talks with France and achieve what Montenegro has planned - to apply for a candidate status by the end of the year.

"Serbia and Montenegro started the process of accession to the EU in November 2005, when negotiations over a Stabilisation and Association Agreement began and the country has since gained independence," he added.

But Commissioner Rehn cast a shadow of doubt on Montenegro's bid for membership, saying yesterday, December 11^th, that ‘much more work is needed, including on the rule of law and institution building.'

Montenegro's bid is likely to encourage neighbours Serbia and Albania to follow suit, and, if successful, can only be a positive thing for the country's property market.

Picture by edkohler

Croatia tourism figures up in 2011

admin — 12/08/2011 07:22:00

Croatian tourism is on track for a record-breaking year, with an eight percent increase in visitors since January, the tourism minister said Wednesday.

"If we talk about numbers of visits and overnight stays, this is certainly the most successful year in Croatia's tourism," a key segment of the Adriatic country's recession-hit economy, Tourism Minister Damir Bajs told national TV.

During the January-July period 6.2 million tourists visited Croatia, ministry figures showed, an eight percent increase on the same period in 2010, or an extra 450,000 tourists.

In July alone, some three million tourists were recorded in Croatia, 4.8 percent more than the same month last year.

Source: Independent.co.uk

Croatia completes most of EU membership talk

admin — 08/06/2011 07:54:00

Hungary is steering the talks as current holder of the EU presidency - a role it hands over to Poland in July.

On Monday EU-Croatia negotiations on fisheries were completed.

Only four negotiating "chapters" remain - including tough judicial and competition issues. Croatia is on track to become the 28th EU state.

Later this week the European Commission plans to recommend completing accession talks with Croatia so that it can join the bloc in mid-2013, EU sources are quoted as saying.

Source: BBC.co.uk

Croatia hoping for EU membership by 2012

admin — 25/05/2011 06:29:00

Croatian president Ivo Josipovic said Tuesday he still hoped to conclude European Union accession talks soon, despite disagreements among member states over the schedule for membership.

"It's clear that Croatia would like to finish negotiations as soon as possible, which means June or July, and we would like to be members by 2013," he said at a joint press conference with Finnish President Tarja Halonen in Helsinki, where he kicked off a two-day visit to the Nordic country.

A meeting of EU foreign ministers in Brussels was divided Monday over when to wrap up negotiations to welcome Croatia into the bloc, with some states including France, Britain and the Netherlands saying the schedule depends on when Croatia meets the EU criteria.

Source: IrishSun.com

Croatian house prices stabilize after 2 year fall

admin — 05/04/2011 11:17:00

Croatian house prices have stabilized, after mild but steady price falls since 2008. The national price of advertised houses was slightly up (0.4%) in January 2011 from the previous month, but 3.8% down on the previous year, according to CentarNekretnina.

January’s increase was the third consecutive monthly increase since the bottom. From its peak in September 2008, the national house price index had fallen 11% to October 2010.

The average price of flats in Zagreb was €1,825 per sq. m. in January, 2.3% down on a year earlier but up by 0.4% from the previous month. Zagreb house prices 8.5% down from January 2010, but 4% up from the previous month at €1,163 per sq. m. Property prices on the Adriatic Coast, Croatia’s most popular tourist destination, were more resilient.

• The average price of seaside cottages and apartments was €2,055 per sq. m. in January 2011, up by 0.2% from the previous month and down by a mere 0.3% from a year earlier.

• The average price of houses was €1,564 per sq. m. unchanged from last month and down only 0.7% from last year.

• But the average price of Adriatic Coast flats was % from the previous year at €1,864 per sq. m. in January 2011.

Source: Global Property Guide

New air link makes Croatia ideal winter getaway

admin — 23/02/2011 12:20:00

In winter, deprived of the colour and charisma of people from planes, the islands and coastal resorts of the Mediterranean can end up looking a bit forlorn, just like our gardens. It's for this reason that airlines re-focus their efforts on flying to destinations popular with city-breakers and skiers.

This week easyJet launched a new service from Gatwick to the Croatian capital. On the face of it this looks like the basis for a short stay in Zagreb, but it also gives access to a choice of interesting resorts, Opatija and Zadar, on the Croatian Riviera.

A new motorway that sweeps past Zagreb's airport enables visitors easily to reach Opatija – now only 90 minutes away. When Austria-Hungary was a flourishing concern, Opatija was the winter retreat of choice for wealthy Viennese: it was the closest bit of coast to the capital, just 200 miles as the imperial eagle flies. The resort is set on a curving piece of shoreline that climbs quite steeply into forested mountains, and its hillside setting means that a great many properties have a sea view out over the Kvarner Bay.

Zadar, on the opposite site of the Bay (and two hours' drive from Zagreb), is a different matter. Far older, and once the capital of all Dalmatia, it nevertheless manages to feel much more contemporary. Tourism is just a part of its portfolio. This is a place of students, of shoppers, of entrepreneurs and visitors from the offshore archipelagos, seeking the bright lights. Built on a short string of islands, Zadar's first settlements were eventually merged to become a single bent thumb of land ringed with ramparts and reached through a chain of fortresses, with a superb natural harbour on its inland side.

Zadar likes to describe itself as the California of Croatia. It is growing fast, and attracting young entrepreneurs. Andnext month, non-stop flights from Stansted resume. (If you book by midnight tomorrow, Ryanair has plenty of availability from 27 March onwards at just £16 return, including tax.)

Source: The Independent

Croatia wins big in 2010 travel awards

Catherine Deshayes — 29/10/2010 11:45:00

Survey after survey shows that people continue to regard holidays as a priority - Guardian readers take a total of 4.8 million holidays a year, and Observer readers take 3.6 million- so let's check out some of this year's winners in the Guardian Travel Awards...

Favourite UK city

The award for most awards goes to Edinburgh - winner for the 11th consecutive year. With its internationally renowned festivals, fine dining, history, culture and precipitous location, it's hard to see it being toppled.

1 Edinburgh 2 York 3 Durham 4 Bath 5 Cambridge

Favourite overseas city

Sydney, winner for the previous two years, slips down to third to be replaced by Tokyo - home of all things hi-tech, modish and online - which storms in from nowhere in a bold neon blaze

1 Tokyo 2 Berlin 3 Sydney 4 San Francisco 5 Krakow

Favourite European country

After three years at the top, Switzerland makes way for Austria. Could it be anything to do with Linz being joint European capital of culture last year?

1 Austria 2 Switzerland 3 Sweden 4 Croatia 5 Italy

Croatia retains its authenticity, lifestyle and excellent wines and food, remaining one of the last unspoiled parts of the Med. Travelex has recently voted it one of the best value holidays for holidaymakers hunting for some end of year sun.

Fancy checking out properties for sale in stunning Croatia? Visit www.kavanjin.com or www.themovechannel.com/property/details/2757305/

Croatia expects 'last-minute tourism' in 2010

Catherine Deshayes — 10/03/2010 09:19:00

Croatian Minister of Tourism Damir Bajs has said that 2010 will likely be the year of "last-minute" tourism.

Taking part in Monday's session of the Croatian tourist board, HTZ, Bajs also said he believed marinas and campsites would do better than hotels this year, the Croatian Times reported.

Germany is still the most important market for Croatia, he said, and most marketing will be directed toward that market.

The HTZ will allocate 130 million kunas [€18 million] for joint marketing activities, an increase of 6.4 million kunas [€881,000] on 2009.

Bajs said he was aware that Croatia's competition, which includes countries such as Greece, France, Portugal and Spain, will do all in their power to hold onto business this year, meaning Croatia needs to do even more.

Source: www.balkaninsight.com

Balkan property rights ‘still a challenge'

Jaimie Kanwar — 27/02/2009 12:26:00

The 2009 International Property Rights Index shows that the protection of property rights still remains a challenge for most of the Balkans...

The Index incorporates 10 variables, divided into three main components: legal and political environment, physical property rights and intellectual property rights.

Greece at 39th place out of 115 countries is ranked highest among all the Balkan countries, with Slovenia the runner-up at 48th place.

Then follow Bulgaria and Croatia, on the 59th and 60th spot respectively, Romania at 64 and Montenegro at 95. Macedonia is ranked 97th ahead of Serbia at 100, Albania at 104 and Bosnia & Herzegovina at 108th place

Same as in the last three years, Finland tops the Index followed by Denmark and the Netherlands, Australia, Switzerland, Austria, Iceland and Singapore.

Source: www.balkaninsight.com

Slovenia vs Croatia

Jaimie Kanwar — 18/02/2009 10:26:00

A border row dating back to the collapse of Yugoslavia is threatening Croatia's chances of completing EU membership talks this year...

Slovenia, the first former Yugoslav nation to join the EU in 2004, has been blocking talks with Croatia because of the 18-year-old dispute, which mainly concerns a small bay in the Adriatic Sea.

Seen from a boat, Piran is a glorious sight - a Venetian-style city built of limestone and marble, lapped by the blue waters of the Adriatic. It's easily missed on a map, but this small bay of just 20 square km (eight square miles) is making big diplomatic waves.

Border line

The row centres on access to international waters, which Slovenia treasures because its coastline is just 46km (29 miles) long. By contrast, Croatia's huge Adriatic coast stretches for 1,700km (1056 miles).

However, Croatia claims that the border should be drawn down the middle of the bay of Piran, which Slovenia fears would deny its ships direct passage to the high seas.

When both nations were part of Yugoslavia, borders didn't really matter. But since they declared independence in 1991, incidents have flared up in the bay, with fishing boats seized and nets damaged.

Veto power

Slovenia is smaller than Croatia, but it holds a powerful position. Like any EU member state, it can veto Croatia's bid. Last December, it did exactly that, blocking a large chunk of its neighbour's accession talks.

The reason, according to Slovenian Foreign Minister Samuel Zbogar, was that Croatia had provided maps and documents in the EU negotiations that would have pre-judged a solution to the border dispute.

"We have problems allowing Croatia to continue negotiations, because our vital interests are still hurt by the documents that were brought into the EU process," Mr Zbogar says.

Time is running out for Croatia. Unless the stalemate is broken in the next few weeks, it is unlikely to complete EU membership talks by the end of the year. But the two countries differ on the solution.

Mediation?

Slovenia prefers EU mediation, possibly led by the Nobel Peace Prize winner Martti Ahtisaari, the man who drew up the blueprint for Kosovo's independence.

Croatia says the border dispute is a legal issue, not a political one, and should be handled by the International Court of Justice in The Hague.

"We have one bilateral issue which is not related to our negotiation process," Croatian Foreign Minister Gordan Jandrokovic said. "And because of this issue we are now in the blockade."

"The message is that if we fulfil all that's necessary for membership, if we undertake some reforms that are very painful, there is no guarantee that we will become a member of the EU," he added.

Dangerous precedent

A meeting between the prime ministers of Slovenia and Croatia later this month may lead to a solution. But no date has been set.

A complicating factor is the attempt by two Slovenian nationalist groups to hold a referendum on Croatia's Nato accession. They say Croatia should be prevented from joining the alliance at a summit in April because of the border dispute.

A NATO spokesman voiced concern at the move, which would be unprecedented. Macedonia's hopes to join Nato and the EU have also been dealt a serious blow by Greece, because of a row over the country's name, which Athens believes could lead to territorial claims.

As Serbia and other Balkan nations line up to join the Western clubs, there's growing concern that a dangerous precedent has been set.

Source: www.bbc.co.uk

Croatia Government working overtime

Jaimie Kanwar — 13/02/2009 12:01:00

The Croatian government has been commended for its efforts to encourage foreign investment in the country's property market...

According to Paul Collins of Buy Association, the government has done everything possible to bring more overseas property investors into the market, including highlighting the country's tourism potential, and removing obstacles to foreigners buying in the country.

Liam Bailey, chief market analyst for overseas property portal Property Abroad had this to say of the Croatian market: "The Croatian market exploded during the overseas property boom, but its sheer popularity as people expected EU membership to be just around the corner. This however led prices to be driven up rapidly, to the point where not much room remained for fantastic growth.

"However, the Croatian market is expected to experience another boom when EU membership is finally granted, and those who buy now, to hold possibly for several years, should enjoy 6-8% rental yields if they choose their Croatia property carefully.

Croatia is world renowned for its beautiful beaches, and striking hills and landscapes, as well as a beautiful Mediterranean climate, making it very popular with tourists from around the world.

Source: www.property-abroad.com

Croatia open for business

Jaimie Kanwar — 09/02/2009 10:22:00

A new property law in Croatia could be good news for overseas investors...

The Croatian parliament on Friday amended the country's property law so as to make it easier for foreigners to buy houses there, national television reported.

The move had been demanded by the European Union, which the Balkan state is seeking to join. From now on foreign nationals who want to buy property in Croatia have only to seek the approval of the justice ministry. Before, they also needed a green light from the foreign ministry.

But foreigners can only buy property in Croatia if their home country offers the same rights to Croatians.

The opposition condemned the vote, saying that by introducing the new law the ruling conservatives were paving the way for the "sale of Croatia's most valuable resource", meaning its Adriatic coast.

EU criticism

In April, the European Union criticised Croatia's property laws, saying Zagreb was going back on the conditions to which it had agreed for joining the 25-nation bloc.

The EU warning followed complaints from the Italian government that Italians were being discriminated against in the Croatian housing market.

Over the past five years there have been 7,300 foreign requests to buy property in Croatia -- mainly on its Adriatic coast --, of which just 2,700 have been approved, according to official figures from the foreign ministry.

However the true number of purchases is believed to be much higher. The press and estate agents estimate there could be as many as 45,000, because buyers are finding loopholes in the lengthy, complex procedure.

Croatia began membership talks with the EU in October 2005 and hopes to join by the end of the decade.

Source: http://www.eubusiness.com

Global phenomenon

Catherine Deshayes — 11/11/2008 10:45:00

Worsening economic conditions have now taken a toll on almost every commercial property market in the world, according to a global survey of real estate surveyors...

The past few months have seen a sharp deterioration in performance and demand for real estate in many regions that had previously appeared resilient to the credit crisis, in particular parts of Asia and Eastern Europe.

The slump in commercial property is well established in mature markets such as the UK and US, but a report today from the Royal Institute of Chartered Surveyors shows that there are few property markets in the world that remain unscathed by the economic crisis.

The net balance of movements in global rents turned negative for the first time in the survey's history, led by weakness in the US, Japan, Spain, Ireland and India, while property values also worsened markedly in the third quarter.

The report, which measured sentiment among surveyors about the value and tenant demand for property, singles out the Indian market as being particularly hard hit. The region has attracted many overseas investors hoping to tap into the property needs of a previously booming economy.

Rising interest rates, higher inflation and a lack of liquidity is affecting confidence in the country, says the report, and 45 per cent more surveyors reported a fall in occupier demand compared with six per cent in the last quarter. The balance of surveyors reporting investor purchases plummeted from zero to minus 73.

The biggest slump in capital values has been in Eastern Europe, a marked turnaround considering expectations of growth only three months ago.

Source: The Financial Times

New property sites launched

Catherine Deshayes — 10/10/2008 09:49:00

TheMoveChannel.com, the leading international property portal, announces the launch of over 80 country specific property sites...

Each country site features in depth property listings that can be filtered by a multi criteria search engine. The investment opportunities listed include both residential and commercial properties, land and more unique property types.

Developers, estate agents and private owners who advertise with TheMovechannel.com will double their exposure by appearing on both the main TheMovechannel.com international property portal and the relevant country portal that their properties are located in. Advertisers however will not be charged any fee for this additional coverage.

Buyers can gain a valuable insight into countries through the dedicated country news, features, email newsletters plus online buying and selling guides.

Dan Johnson, Managing Director, comments, "We've recognised in the toughening real estate market, investors are adopting a more sophisticated and informed buying process.

"The new portals not only provide detailed information on the property stock available in a particular country but also fill in the gaps in investors' knowledge of a market through reference materials and frequent news updates," added Mr Johnson.

Source: www.themovechannel.com

Look outside eurozone for property

Catherine Deshayes — 27/08/2008 13:11:00

Overseas investors should look outside the eurozone for property bargains as the euro rises in value against the weakening pound.

Property within the Euro zone is becoming increasingly expensive for UK investors, as the pound continues to fall against the euro, currently sitting at euro1.26 to £1.

If investors consider properties in countries which are outside the zone, they will get far better value for money.

Holidaymakers are also far less likely to travel to countries within the eurozone while the currency is so strong against the pound, thus reducing demand for rental properties and impacting rental yields.

Stephen Smith, Sales and Marketing Director of Egyptian property developer West Side Village, said, "Investors would be wise to seek destinations outside the zone, where they will be more likely to afford quality investment properties in good locations, maximising their rental opportunities.

"Destinations which are served by regular cheap flights, preferably within a five hour flying time of London, such as Egypt, Turkey, Morocco or Croatia are ideal.

"With property prices falling in the UK, now is a good time to diversify into an emerging market overseas, which can offer high capital growth and strong yields.

"Investors should carefully research the best destination for them, taking into account currency exchange rates, tax laws, tourist levels and the potential for growth," Mr Smith added.

Five top tips for investors

Destinations with year round sunshine offer the greatest scope for maximising rentals and reducing void periods, which greatly enhances yields.

Invest in a country with low capital gains and inheritance tax. Some countries such as Dubai and Egypt have a rate of 0%.

Investigate the resale market, especially if you intend to sell your property in the short term, and find out what capital growth has been achieved over the past five years.

Research the lettings market and find out the rental yields other investors are achieving in your desired area.

Furnish and equip your property with your target market in mind, e.g. holiday lets or local lets.

To browse properties for sale in Egypt, or anywhere else in the world, visit www.themovechannel.com/property/Egypt/

Croatia: The 'ethical choice'?

Jaimie Kanwar — 03/08/2008 23:58:00

Croatia is one of the world's most ethical tourism destinations, a new study has revealed.

A study from the Ethical Traveler, which surveyed more than 70 locations, deemed Bulgaria and Croatia to be in the top ten. Each destination was ranked on environmental protection, social welfare and human rights.

Croatia scored highly in the environmental sustainability and responsibility index with its "large percentage of protected eco-regions" being particularly commended.

Jeff Greenwald, executive director of Ethical Traveler, explained: "Each year, the public interest in responsible tourism grows. The report helps travellers who choose to use their tourism dollars to support human rights and the environment."

Also included in the top ten were Costa Rica, Estonia, Namibia, South Africa, Argentina, Bolivia, Chile and Nicaragua.

According to the Croatian National Tourist Board, value for money is tempting holidaymakers to the country as it is a ‘reasonably priced place to visit'.

Investors flock to coastal Croatia

Jaimie Kanwar — 04/07/2008 10:00:00

Demand for property along the Croatian coastline has skyrocketed, claims one company.

According to industry analysts, strong coastal demand is pushing up house prices in the country.

A spokesperson for Amberlamb recently stated: “Coastal towns in the Croatia have become very popular with foreign property buyers in recent months, and the high level of demand has led to house prices in the most sought-after locations going skywards.

”This means that investors who have entered the market early could potentially collect good returns should they come to sell up at a later date. You can also no longer consider Croatia an emerging market in price terms alone. Although many buyers want a coastal property for investment purposes, lots of these people are also keeping it for their own personal use.

“Despite the rise in the cost of real estate, the cost of living in Croatia remains affordable – what’s more, the quality of life in Croatia is so fabulous. The pace of life is slower, the climate is more attractive than the British climate for example, and the people are welcoming."

Top of the Props – April 2008

Jaimie Kanwar — 09/05/2008 00:00:00

Interest in the United Arab Emirates from visitors to TheMoveChannel.com has soared over the last month, with the progressive Federation breaking into the top ten of our ‘Top of the Props’ chart for the first time…

Never content to rest on its laurels, the UAE’s defining characteristic seems to be its unshakeable quest for continuous improvement – something that has underpinned the success of States like Dubai and Abu Dhabi. And with major infrastructure investment occurring across the Emirates, it’s an exciting time for prospective investors.

Elsewhere, the titanic struggle at the top of chart between Europe’s heavyweights continued, with Italy, France and Spain shuffling places once again, and a new number 1 taking over. Far flung destinations continued their march up the chart, with two exciting emerging markets consolidating their positions in the top 10.

To view the complete chart, along with analysis and expert comment, please visit: http://www.themovechannel.com/articles/viewpoints/108-5-1.asp

You can also view the very latest global investment opportunities on our Property Investment Portal

And the next country to suffer is…?

Jaimie Kanwar — 29/04/2008 00:00:00

An expert predicts which part of the world is next in line for a property downturn…

According to Barbara Knoflach, chief executive of German fund house SEB Asset Management and manager of the €7 billion SEB ImmoInvest fund, Scandinavia and Eastern Europe are the next most likely contenders to follow the UK into a property downturn.

Ms Knoflach explained: “The Nordic region will see a very sharp outward move in yields and the Eastern Europe markets will follow. Yields dramatically going upwards will level off the number of new developments.

“Both regions have experienced unsustainable yield compression in recent years. Indeed, several mature Central and Eastern European markets such as Poland and the Czech Republic have already seen yields move out by up to 2% in some areas.

“Germany, France and Italy, heavily regulated and at a different stage in the cycle, will not suffer so badly but will not be able to escape a wider economic slowdown. Spain is also at the sharp end of the property correction but a series of structural issues and in particular contagion from a residential property correction set it apart.

Istria: ‘Pearl of the Adriatic’

Jaimie Kanwar — 21/04/2008 00:00:00

Istria is one of Croatia’s hottest new property markets, according to one company…

The beauteous and historically wealthy peninsula of Istria is commonly considered to belong exclusively to Croatia, and yet tiny portions of this charming and bewitching sea caressed landmass, which was, belong to Slovenia and Italy with the whole of the region having once been under Italian control.

The World Travel and Tourism Council predict that personal travel and tourism annual activity growth in Croatia will average between 7.9% and 5.5% between now and 2016, and already travel and tourism accounts for around 22% of Croatia's GDP with Istria being one of the main regions of the nation to attract international visitors.

As a result of this fact Istria - christened 'the Pearl of the Adriatic' by George Bernard Shaw - is now one of the regions of Croatia most in receipt of public and private investment. It is also the most accessible part of the nation as well, with visitors able to fly in to Pula Airport with low cost carriers such as Ryanair and Flyglobespan, or access the region by car having arrived at nearby Zagreb or Rijecka airports, Airport FVG Ronchi dei Legionari in Trst, Airport Marco Polo in Venice or Ljubljana Airport.

Rental yields rising

With talk of prices having risen by 20% in Croatia in recent years in The Guardian newspaper and some local property consultants boasting of potential 100 - 150% returns in the medium term, Knight Frank casts some further light on the situation by advising that Croatian property prices rose by 30.7 % between 2002 and 2006 and that rental yields of between 5 and 7% are possible in the most popular areas – of which Istria is very much one.

Caroline Hollingworth, Managing Director of Hollingworth & Associates, commented: “The Istrian Peninsula has become one of Croatia’s hottest property markets as it is extremely well-connected to the rest of Europe. There are superb new roads and motorways, five airports to choose from, which include low cost flight operators, and a number of new marinas and golf courses under way.

“This tourist-friendly infrastructure is ensuring that the area’s stunning coastline and beautiful countryside is now starting to truly capitalise on its potential. Ever increasing visitor numbers and Istria’s ongoing recognition as an ideal holiday destination is making it an extremely popular property hotspot. Plus the increasing tourist numbers offer immediate opportunity for rental income.”

Croatia: The time is now!

Jaimie Kanwar — 27/03/2008 00:00:00

House prices in Croatia could be set rocket in the next few years, according to experts…

Independent analysts including Amberland have tipped the country to become a member of the European Union in 2010 – something that will transform its economy, making it more competitive and desirable to foreign businesses.

A spokesperson for Amberland remarked: “Economic growth will result in Croatian citizens becoming more affluent, a development which should push up demand for property across the country. Overseas property investors consider purchasing a residence in the country, as it could generate strong returns. Getting in now ahead of EU entry could offer an investor the chance to buy in ahead of price gains and rental yield expansion."

Figures from Knight Frank recently revealed that house prices in Croatia rose by 11.6 per cent last year.

Croatia ‘cheaper than Portugal’

Jaimie Kanwar — 20/03/2008 00:00:00

Croatia house prices are better value than those in Portugal and Turkey, it has been claimed...

Global Property Guide estimates that the average price in the country is €2,215 per square metre, making it cheaper than Turkey or Portugal. However, the site does show that popular areas are considerably more expensive. For example, houses in Dubrovnik can cost between €300,000 and €1.4 million.

On the popular islands, which include Hvar, Korcula and Brac, homes can cost similar amounts. Despite this, it is possible to still find some bargains. For example, smaller apartments on Korcula and Brac still change hands for less than €100,000.

House prices on the rise

In further good news, figures from the latest Knight Frank Global House Price Index reveal that Croatia has seen strong growth over the last year.

The annual rate of 11.6% growth to Q4 2007 was marginally lower than that to the previous quarter at 12.1% to Q3 2007, though this still appears to resemble something of a return to form for Croatia, after rates of house price inflation dipped to below 6% towards the end of 2005.

The highest values per square metre for residential property are found in apartments in the capital Zagreb. The value of property on the Croatian coast is around 90% of that in the capital.

Croatia ‘exceeding expectations’

Jaimie Kanwar — 07/03/2008 00:00:00

Record tourism in Croatia is great news for investors who own property in the country…

Data cited by IOL Travel showed that the number of foreign arrivals for 2007 was six per cent higher than 2006. Figures also showed that the 9.2 million people who visited spent a total of 53.4 nights in rented accommodation.

This will make positive reading for owners of rental property in Croatia, especially since the figure is five per cent higher than the previous year

Croatia's tourism minister Bozidar Kalmeta enthused: "The past four years were a record but 2007 is above all expectations."

Meanwhile, a report by the European Union has stated that Croatia could become a full member within five year. The body stated that it expected to make "substantial progress" in forthcoming negotiations regarding the country's bid.

Euro property markets ‘under threat’?

Jaimie Kanwar — 04/03/2008 00:00:00

The European property market is facing increased competition from some emerging property hotspots in other parts of the world...

The International Herald Tribune recently reported that countries in Africa and South America are attracting higher levels of interest from foreign property investors.

It says their ability to offer the sought after combination of sun, sea and sand as well as easy access to major cities is helping them to rival their European counterparts.

Morocco in particular is proving a popular destination and is fast catching up to the likes of Spain and Portugal as a top choice for foreign property investment.

Comparatively low prices are a big attraction to buyers and an increase in the number of tourists visiting the country is fuelling demand for rented accommodation, which means opportunities for buy to let investors are plentiful.

Tourism is the country is expected to be given a further boost thanks to the Moroccan government's Vision 2010 tourism strategy which aims to increase visitor levels five fold compared with 2002 levels.

Istria: ‘Pearl of the Adriatic’

Jaimie Kanwar — 19/02/2008 00:00:00

Istria is one of Croatia’s hottest new property markets, according to Hollingworth & Associates…

The beauteous and historically wealthy peninsula of Istria is commonly considered to belong exclusively to Croatia, and yet tiny portions of this charming and bewitching sea caressed landmass, which was christened 'the Pearl of the Adriatic' by George Bernard Shaw, belong to Slovenia and Italy with the whole of the region having once been under Italian control.

Today the Istria that is rising in fame, popularity, allure and attraction is the Croatian part of the famously heart shaped peninsula – but because of Istria's inextricable ties to Italy, one cannot help but compare it to the likes of Tuscany for example.

And in just the same way as Tuscany's fames and fortunes have risen to lofty heights in recent years as the world has grown more aware of its inimitable and seductive charms, so Croatia's region of Istria is fast becoming one of the most talked about, particularly in terms of its tourism and property appeal.

Huge capital growth

As a result of this fact Istria is now also one of the regions of Croatia most in receipt of public and private investment so that now it is the most accessible part of the nation as well, with visitors able to fly in to Pula Airport with low cost carriers such as Ryanair and Flyglobespan, or access the region by car having arrived at nearby Zagreb or Rijecka airports, Airport FVG Ronchi dei Legionari in Trst, Airport Marco Polo in Venice or Ljubljana Airport.

With talk of prices having risen by 20% in Croatia in recent years in The Guardian newspaper and some local property consultants boasting of potential 100 - 150% returns in the medium term, Knight Frank casts some further light on the situation by advising that Croatian property prices rose by 30.7 % between 2002 and 2006 and that rental yields of between 5 and 7% are possible in the most popular areas – of which Istria is very much one.

Stunning natural beauty

Caroline Hollingworth, Managing Director of international property consultancy, Hollingworth & Associates, is specially tuned into Croatia, having lived and worked there for the past fourteen years: “The Istrian Peninsula has become one of Croatia’s hottest property markets as it is extremely well-connected to the rest of Europe. There are superb new roads and motorways, five airports to choose from, which include low cost flight operators, and a number of new marinas and golf courses under way.

Hollingworth added further: “It isn’t just the new tourist infrastructure that makes Istria appealing. Its stunning natural beauty, warm sunny climate, and historic towns are driving ever-increasing numbers of tourists to seek out the charms of the area.

“Pula for example boasts one of the best preserved Roman amphitheatres in the world. Venice is just a short drive away. And the rugged, multi-island coastline has become a sailor’s paradise. Istria really does offer something for everyone.”

Buying Property in Eastern Europe

Jaimie Kanwar — 11/02/2008 00:00:00

The essential guide to purchasing property everywhere from the Baltic to the Balkans…

Hosted by Webooks.co.uk, “Buying Property in Eastern Europe”, is written with the serious investor, second-home buyer and permanent relocator in mind, and covers 13 countries, including: Turkey, Croatia, Bulgaria, Poland and the Czech Republic. This title offers advice on everything from property legislation and taxation issues, to where and what to buy and how to adjust to the culture shock of living out east.

Visitors can read the whole book for free online, or download a PDF from the online shop for future reference.

Author Leaonne Hall is an expert on the overseas property market and has written extensively for a number of newsstand titles. She previously produced three editions of the Red Guide to Buying Property in Eastern Europe, and has been writing in detail on the individual markets since 2003.

On the Webooks website, users can also read the author’s blog and find useful websites in the directory.

With over 200 Webooks set to go online during the remainder of 2008, visitors can also sign up to the newsletter to receive alerts when new titles are added to the online library.

You can read the book on the WeBooks website below:
http://www.buyingpropertyineasterneurope.info/

Webooks
http://www.webooks.co.uk

IMF: World economy in 'turmoil'

Jaimie Kanwar — 04/02/2008 00:00:00

The International Monetary Fund (IMF) has warned of impending ‘global economic slowdown’…

But the revised predictions are still well short of being a global recession. The IMF's chief economist calls it a significant global slowdown. For the major developed economies, the IMF predicts continued, but much weaker, growth this year.

The new forecast for global economic growth this year is 4.1%, after nearly 5% last year. There is a very sluggish period ahead for the main rich countries. By the final quarter of this year, annual growth in the US will be below 1%, according to the IMF.

Developing economies are predicted to grow more slowly than last year, though still quite robustly in many cases. The report also warns of risks from financial market turmoil, which could mean 2008 turns out worse than its main forecast.

Those problems could affect spending in the rich countries and make for more significant spillovers to developing countries. In any event, the IMF's economists said that talk of de-coupling - the idea that the world is independent of what happens in the US - was "greatly exaggerated".

One exception to the pattern of slowing growth in the forecast is Africa. IMF economists say that reflects high prices for many of the commodities exported by African countries, improved economic polices and the fact that the continent is less exposed than Asia, for example, to problems in international financial markets.

Croatia ‘hotting up’

Jaimie Kanwar — 04/02/2008 00:00:00

Property in Croatia is ‘exceptionally good value’ for investors, argues Property Abroad…

Les Calvert, director of Property Abroad, recently commented: “The Croatian market is beginning to develop at pace - with the possibility of EU membership on the horizon – making now a good time to make a purchase. It's not as developed a property market as those other countries such as Greece and Italy, but it's certainly one to look out for, for the investor who likes to get ahead of everybody else.

According to the Croatian tourist board almost 11 million tourists visited Croatia between January and November 2007, a rise of eight per cent from the same period in 2006.

Mr Calvert continued: "Croatia is exceptionally good value for money. We've seen a large increase in online searches for property in Croatia in the last 12 months, so obviously people are starting to take more interest. People are looking at cities and inland properties that they can pick up relatively cheaply. But also people are looking at new developments on the beaches”.

Buyers bemoan flights rip-off

Jaimie Kanwar — 09/01/2008 00:00:00

Brits investing in property investors are being faced with increasingly expensive flights…

Firms are charging extra fees for items such as luggage check-in adding as much as £28 to ticket prices, Which? found. Ryanair said charges were discretionary and largely avoidable, while Easyjet said the consumer group misunderstood the business model of budget airlines.

Ryanair reported passenger numbers up 18% in December on a year ago, while rival Easyjet saw numbers climb 9.9%. However, shares in Easyjet were trading 12% lower in late morning trade at 471p after its load factor - which denotes the number of seats sold as a proportion of total seats available - fell to 78.9% in December, down from 81.2% a year earlier.

Ryanair shares dropped 6.4% to 3.81 euros. Its latest update, released on Friday, had shown its load factor dropping to 79% in December from 81% the year before.

Misleading practices

Which? Argued that Budget airlines have been increasingly charging for services that in the past have been included in the price of a ticket. According to Office of Fair Trading (OFT) rules, airlines must include taxes and other compulsory charges in their headline prices.

"If these costs are genuinely optional then we would not generally object to them being displayed separately, provided they are clear to consumers," said the OFT.

But the watchdog said if any of these charges were not optional and airlines advertised flights as "free" (or used a similar statement) or implied that consumers did not have to pay any extra charges then "this is likely to be misleading".

Ryanair was seen to charge the highest extra costs, by adding a £4 fee for checking in at the desk instead of online, and £20 for checking a bag into the hold. Priority boarding cost an extra £2 per flight - it was only free for passengers who checked in online and had no bags for the hold.

Ryanair said it wanted to encourage passengers to travel with hand luggage only and to check in online. The survey said overall total extra costs, including credit card charges, could be as much as £32 in Ryanair's case, just under £30 for Easyjet and just under £25 for BMIbaby.

Unfair charges

Monarch Airlines, which in November was the latest firm to start charging for checking in baggage by setting a £3.99 fee per item, was seen to charge as much as £23.50 on top, while Flybe's total extras totalled were around £23.

A Which? Spokesperson said: ‘We have spoken to the Air Users Transport Council, and they have said that nothing stops airlines from adding extra costs, but it would look into the issue. We think Ryanair's charge to use its check-in desk is unfair. You can only avoid it if you don't check luggage into the hold".

Eastern Europe and the 'Palin effect'

Jaimie Kanwar — 02/01/2008 00:00:00

Eastern European tourism has surged as a result of a BBC TV series…

Former Monty Python star Michael Palin recently launched a new series depicting his travels across countries behind the old Iron Curtain, including Bosnia, Slovakia and Albania.

This prompted Daniel Pawlyn of adventure holiday website Intrepid to predict that this will heighten interest in these countries among Britons.

He commented: "The great thing about the way Michael Palin travels is that he really gets under the skin of a country; travelling on local transport, staying in traditional accommodation and generally doing what the locals do."

Mr Pawlyn cited the broadcaster's previous expedition to the Himalayas, which contributed to a surge in the number of people visiting the Asian mountain range.

Many of the destinations covered by the TV programme include areas that have already become emerging hotspots for overseas investors, including Romania, Poland and the Czech Republic.