The Istrian property market
The Istrian Property Market is more stable than the rest of Croatia
due to the fact that foreigners have been buying property there
for many years. There are many Italian, German and Austrian property
owners. Until recently this has meant that Istrian prices were
higher than the rest of Croatia, but now with the recent property
boom in Dalmatia, prices have equalised.
When to look
Autumn, winter and spring are the best times to look for property,
as they are not as busy as during the peak of the tourist season.
At all costs avoid property hunting in July and August. It is a good
idea to have your finances in place before you go. Once you find
a property you need to be ready to make a deposit. Any delay and
it could be snapped up by another buyer.
Locating a property
Coastal tourist areas - Istrian West coast
This area is very busy in the summer, so it offers a good return on lettings.
Out of season most of these towns are quite quiet, and most tourism-related
facilities are closed. However, each year the 'tourist' season is getting longer.
Inland - hilltop towns Some of the most beautiful locations in Istria, the medieval hilltop towns have an even more pronounced difference between peak and low seasons. The twisty drive to the top is worth it for the spectacular views. They are very active in summer, and very quiet in winter. Yet in these seemingly remote spots you are still never more than 30km from the sea.
Inland from the coastal towns Properties outside the main tourist areas are considerably cheaper, though often they are only 5km or so from the sea. Here you can often find Istrian stone houses with much character, sometimes with enough garden space for a swimming pool.
East coast The east coast is generally less developed, though there is no doubt that it will develop in the next 5 to 10 years. (The exception is the town of Rabac which draws thousands of tourists.) The steep forested slopes fall down to a rocky coastline and provide sweeping panoramas over the sea and the islands. In this area it is possible to buy a house with a terrace within a few hundred meters of the coast for not much more that €100,000.
Southern Istria The convoluted coastline and many coves and inlets make this region ideal for those interested in watersports. New projects to improve the infrastructure for housing mean that this area will also develop quickly.
Estate Agents
There are many agents (Nekretnine in Croatian)
in Istria- some are well established and have had experience selling to
foreigners. Others may be selling their friend's apartment. As anyone may
sell property, it is advisable to deal with a recommended agent. Even those
we recommend may not be able to provide the level of service you might expect
in the UK. This is because agencies may only have 1 or 2 staff.
You will be expected to sign an agreement that you will not buy the properties you are shown from another agent. (Rememebr that exclusive agency is rare in Istria). Agents in Istria, unlike in Dalmatia, do not charge, (as yet) to show properties. The agents fees are derived from the fees charged to a buyer and the seller (3-3.5% of the property price from each).
Making an offer
Because properties are rarely exclusive with
one agent, when you make an offer, it is
possible that another agent may also be negotiating
with another customer at the same time. This
can prompt the owner to a simple remedy -
raise the price. Owners sometimes increase
their price by as much as 20% at the last
minute anyway. Be prepared for this, but
if the property has been on the market for
several months do not be afraid to negotiate
from the lower price.
Once you have decided that the price is reasonable, ask to see a copy of the
title deeds. When the contract has been drawn up ask for a certified English
translation, (a small additional cost) and arrange for your 10% deposit to
be paid to a solicitor. You may either use the solicitor recommended by the
agent or choose one yourself. Alternatively you may prefer to use the services
of a UK based solicitor specialising in overseas property purchases such as John Howell & Co It
is important to note that if you withdraw from the sale you will lose the 10%
deposit. If however the owner withdraw then he/she is obliged to pay you a
further 10% plus your original 10% deposit.
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