Escapes|The Tuscany Life, in Croatia
The Tuscany Life, in Croatia
By BRETT CORBIN MAY 25, 2007
FOR vacation-home buyers who want the feel of Tuscany but at lower prices, the peninsula of Istria in northern Croatia is proving to be a popular choice.
For years most of the foreign interest in Croatia's real estate centered on its southern coast. But over the last five years, as prices along that 3,100-mile strip climbed and the supply of vacation homes dwindled, Istria emerged as a region where prices were still affordable and foreign buyers were welcomed.
Martin Westby, managing director of Croatia Holiday and Home, an English company that advises prospective buyers on the Croatian real estate market, said that the success of sales in the region was partly because Istria was the first area in Croatia to be served by Western European budget airlines and because it was easier to complete a transaction there than in some other parts of the country.
By 2005, the region led the country in foreign ownership, with 34 percent of its properties in the hands of non-Croatian owners; the rate in the popular tourist city of Dubrovnik was less than 10 percent, according to the Croatia Chamber of Economy.
Upper-end homes in the interior of Istria are priced at about 1,500 euros a square meter, or about $192 a square foot at $1.38 to the euro. On the Istrian coast, prices rise to around 2,300 euros a square meter.
For comparison, property farther south near the beach in Split, a city of 200,000 in the middle of the country's Adriatic coast, sells for 3,000 euros a square meter and properties inland are 2,250 euros a square meter.
And in Dubrovnik, it is very hard to find anything for less than 3,000 euros a square meter, agents said.
While most of the peninsula, which covers almost 1,100 square miles, is within Croatia, there are small slices along the northern edges that belong to Italy and Slovenia.
The divisions — and the fact that town names appear in Croatian and Italian on the signs along the winding country roads — are just a few of the reminders of the area's history.
THE VIEW The medieval hilltop village of Motovun. As prices have risen in the south of Croatia, the northern area of Istria has become popular. Credit Brett Corbin/International Herald Tribune
During the 19th century, Austria ruled Istria, primarily using it as a base for naval operations and wine production. Italy controlled the region from the end of World War I until 1947, when it became part of Yugoslavia until that country split apart in the early 1990s.
Today, the region's past and proximity to European centers is reflected in its real estate market. Germans are frequent buyers — Munich is only a five-hour drive away — as are Hungarians and Austrians. "It's like an Austrian empire" in parts of Istria, said Brian Gallagher, the editor of the online newsletter Croatia Business Report.
American buyers, however, are rare, partly because there are no direct flights from the United States to anywhere in Croatia.
There are some hurdles to buying real estate in Croatia, primarily the complexity of land titles. For instance, it is not unusual for a father to bequeath a few acres of the family land to one child and the olive trees growing on that land to another.
Peter Ellis, director of Croatia Property Services in Istria, recommends that potential buyers hire a Croatian lawyer who understands the market and can ensure that titles are in good order. He also stresses that it is important to visit a potential purchase. "I've been amazed by the people who buy property without visiting," he said.
Right now, agents say, many foreigners are buying with the expectation that Croatia will join the European Union in 2009 and property values will skyrocket, as happened with Bulgaria's entry this year and the Czech Republic's in 2004.
Traditionally, Istrian houses are built of stone, with small windows and thick walls. While some new houses fit that description, many others imitate the white stucco and sprawling style of Mediterranean villas. Also, the work of Robert Dallas, the self-taught British architect who uses reclaimed materials to construct homes in Provence, is having an influence on the area's style, real estate agents said.
Provence also is mentioned when Istrian officials talk about development goals. Denis Ivosevic, the region's tourism minister, said the government would like the region to resemble a mix of Tuscany and Provence. "Provence because it's gentle and Tuscany because it has developed a diverse type of tourism," Mr. Ivosevic said.
But amid concerns of overly rapid development, the Croatian government has been tightening regulations to slow construction and to exert more control over new buildings.
Mr. Ivosevic said the government's goal was to end up with quality properties that were sensitive to the environment. "We've just made certain criteria that we would want any developer to respect," he said.
A version of this article appears in print on , on Page F7 of the New York edition with the headline: The Tuscany Life, in Croatia. Order Reprints| Today's Paper|Subscribe
Map of Croatia MAY 2, 2011