Croatia
Since the Croatian War of Independence ended in 1995, Croatia has been rapidly establishing itself as a top holiday and second-home property investment destination thanks to its unspoilt Adriatic coastline and string of island resorts. According to the Croatian Statistical Office, the country attracted around ten million tourists last year and with realistic hopes of joining NATO and the European Union before the end of the decade, it's definitely one for Adriatic property investors to watch.

"Between 2003 and 2013 Croatia's income from travel and tourism is expected to grow from approximately £4 billion to in excess of £10.2 billion, a staggering 155 per cent growth," says Sonny Gowans, Chief Executive Officer of Global Spaces: "It's for this reason that investing in property in Croatia offers excellent rental yield potential."

Accession to the EU will make the property buying process easier for foreigners who, up until now, have had to seek approval from the Ministry of Justice to gain the right to rent out their private property, and property prices are expected to rise to reflect this milestone in the run-up to EU membership. Areas likely to suffer overdevelopment are Medulin, Premantura, Umag and Zadar, but development is limited in Dubrovnik and Split, making these good potential property investment destinations with affordable property prices. The Dalmatian Islands in the Adriatic are also popular with holidaymakers, particularly Braç, the largest of the islands, which is a short ferry journey from the mainland.

Slovenia
There is similar demand for luxury property in Slovenia, especially around the scenic areas of Bohinj, Kranjska Gora, Bled and Primorska. House prices here are generally rising by between 10 and 20 per cent a year. "The interest in more exclusive houses has been extended to Primorska, along the Soca Valley and up to Bovec as previously popular cheap cottages are in short supply," says Frances Sargent from  Slovenian Properties. "As a result people have looked to Notranjska for cheaper properties." There has also been considerable property investment activity in the area around Maribor because of the new flight into the skiing area courtesy of Ryanair.
Slovenia awaits impact

Bosnia and Herzegovina
Currently in a process of redevelopment since the Balkans war in the 1990s, the Bosnia and Herzegovian property market will be opened up by the Corridor Vc, a four-lane motorway from Budapest to the Croatian coast due to be completed by the end of 2010.

Areas of Adriatic property developments include the Bosnian city of Visoko, where three pyramids are currently being excavated, and the long stretch of coastline at Neum. Land with a view of the pyramids is selling at £2–£5 per square metre and the coastline at Neum for half the price of neighbouring Croatian coastline.

Serbia
Millions of dollars has also gone into redeveloping a 'New Belgrade' in Serbia, where infrastructure and commercial and residential developments are being built to the
highest of Western standards. 
 
As there is currently a lack of quality housing in the city, many overseas roperty investors are set to capitalise on rising rental prices due to huge demand for superior Serbian property. The most popular areas for property investment are currently the Belgrade districts of Senjak and Dedinje, as well as areas of Vracar, Banovo, Brdo, Vozdovac, Zvesdara, Beaanijska, Kosa and Zemun.
Is the Serbian property market a winner?

Albania
"The ease of getting finance, no purchase tax, no capital gains tax, uncomplicated and quick buying process and high capital growth," are all reasons Richard Bannister of Albania Estate believes Albania will also be popular overseas investment location. The capital, Tirana, is a good choice for cheap property with the prospects of high rentability and the miles of beached coastline running from the Adriatic to the Ionian seas are also a good investment option as there is a shortage of beach properties.
"Somewhere decent will cost you between 50,000 and 80,000 euros (£33,000–£53,000)," says Bannister.
Albanian property market to emerge?

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Article published on 2 July 2007