BACK FROM RECESSION
Recession-struck Croatia and Montenegro have seen years of shrinking economies in the years after the global economical crisis hit in 2008. The real hit came a little later then in the rest of Europe; especially in the period 2011 -2013 housing prices dropped dramatically. Both countries, however slowly growing again, still have sluggish economies with high unemployment rates and a severe lack of innovation. Foreign investment in Croatia is still a difficult route while Montenegro is more business-friendly. Bad new for the locals, but good news for second home buyers. Prices are now at 2005 levels after price decreases of 30 to as much as 50%. As a result, it is an excellent time to buy property along the Adriatic coast. Even though good properties may still be hard to find, prices are reasonable and you’ll have time to weigh your options. But a new boom, like these countries have witnessed in the 2006-2009 years might be on the surge. Announced investments in infrastructure, tourism and the expansion of every main airport will attract a bigger and more diverse crowd to Croatia and Montenegro. Big golf and resort project have been put on hold during the last difficult years but will very likely be resumed in 2017. From the Nikki Beach Resort on Hvar, to the proposed golf resort on Srdj Hill over Dubrovnik and the Peljesac bridge; they are all expected to be realized in the next two to three years. On top of that, Montenegro is investing in its ski resort, just an hour drive away from the coast. We think it is safe to say that property prices will be rising the next years as Croatia and Montenegro will develop further and become full-grown, year-round tourist destinations.