Print

Istria: ‘Pearl of the Adriatic’

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.”