Istria: ‘pearl of the adriatic’

Istria is one of Croatia’s hottest new property markets, according to  Hollingworth & Associates…

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 christened 'the Pearl of the Adriatic' by George Bernard Shaw, belong to Slovenia and Italy with the whole of the region having once been under Italian control. 

Today the Istria that is rising in fame, popularity, allure and attraction is the Croatian part of the famously heart shaped peninsula – but because of Istria's inextricable ties to Italy, one cannot help but compare it to the likes of Tuscany for example. 

And in just the same way as Tuscany's fames and fortunes have risen to lofty heights in recent years as the world has grown more aware of its inimitable and seductive charms, so Croatia's region of Istria is fast becoming one of the most talked about, particularly in terms of its tourism and property appeal.

Huge capital growth

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 is now also one of the regions of Croatia most in receipt of public and private investment so that now it is 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.

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. 

Stunning natural beauty

Caroline Hollingworth, Managing Director of international property consultancy, Hollingworth & Associates, is specially tuned into Croatia, having lived and worked there for the past fourteen years: “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.” 

Hollingworth added further: “It isn’t just the new tourist infrastructure that makes Istria appealing. Its stunning natural beauty, warm sunny climate, and historic towns are driving ever-increasing numbers of tourists to seek out the charms of the area.

“Pula for example boasts one of the best preserved Roman amphitheatres in the world. Venice is just a short drive away. And the rugged, multi-island coastline has become a sailor’s paradise. Istria really does offer something for everyone.”