Tourism is a major component of economic prosperity in Corfu and the Balkans, attracting visitors from across Europe, and has been tipped to lead the economic recovery in the region.

Corfu, located on Greece’s northwestern frontier is a high end recreation destination, and has proved resilient when set against the markets of mainland Greece. Prices are down by around 30% from their former highs in the desirable north-eastern coast of the island. This compares to price falls in excess of 50% in the mainland cities. The market seems to have bottomed out so good deals are on offer. Demand is selective: turnkey properties are favoured, while the market for building plots has all but disappeared.

Brits, Germans and French are the main buyers while, perhaps unsurprisingly, most of the vendors are Greeks. The recent introduction of a golden visa programme is anticipated to generate interest from Chinese and Russian buyers 
in particular.

A sovereign state since 2006, Montenegro has enjoyed strong economic growth and inward investment in recent years. It offers a favourable tax climate and pro-business environment. Real estate investment has been focused on the Bay of Kotor around the old Mediterranean port; when complete,


it will include Europe’s first ‘One&Only’ resort. Porto Montenegro is already established as the Mediterranean’s largest super yacht marina.

Russians are the biggest non-domestic buyer group, while Montenegro’s open investment environment has attracted institutional investment from the Middle East.

Like the economies in many Mediterranean states, Montenegro’s rapid growth came to a halt with the global financial crisis. Its emerging real estate investment suffered as a consequence, with volumes today down 40% from their former highs.

Croatia was another country hit by the Eurozone debt crisis. Residential property prices fell significantly in the global downturn, but have stabilised in the last year. Apartments on the coast have now risen slightly in value, by 1% in the year to January 2014.

Croatia is a country of 4.3 million people – with a coastline some 6,268 km in total, the 20th longest in the world – so it offers a wealth of options for those seeking seaside properties.

Buyers here are diverse. At a national level, Slovenians account for the largest proportion of international buyers, some 43% of all foreign purchasers between 2010 and 2012, for example. Germans, Italians and Austrians account for 35% of buyers, concentrated in the north of the country. Buyers in the south include Swedes, Slovakians and the British. The latter are particularly attracted to Dubrovnik, a UNESCO world heritage site. This is among Croatia’s most resilient residential markets and seems to attract buyers with a preference for exceptional and historic buildings, in the same way as the Venice market. Historic apartments inside the city walls still offer rental yields exceeding 6%.

Taken from
Spotlight: Prime Residential Retreats 2014