If we compare the commercial real estate market in Europe in the last three months of 2008 with the first three months of 2009, we can see that the trade value dropped from 22,6 billion € to only 11,5 billion, which is a drop of almost 9 billion, or 44%. Leading analysts believe this is a result of the Lehman Brothers bank collapse that happened 6 months ago and caused several German real estate funds to close, whic in the end led to the entire European market collapsing.
Still, not everything is so gray. The month of March brought us first positive news in some markets in Europe, which even showed rising activity and first signs of recovery. United Kingdom, for example, showed a fall of 22%, half the percentage of Europe total 44%, and it could be a good sign if you take into account that UK was the first European country hit by the crisis, so it could also be the firs to recover completely. Biggest drops in other European countries were the huge 72% in France and 56% in Germany.
Central and eastern Europe, including the real estate market in Croatia, showed a drop of 57%, from 616 million € to 268 million €.
This information may be tricky, but it could be an indication that the market has finally begun to recover. This also means that there will probably not be any more large price drops.

Croatia’s tourism is one of country’s top branches of economy and many politicians are concerned that the crisis will not have a good effect on the tourist income this season.
That is why officials have started discussing some measures that could boost the season and bring in new guests. These measures include scrapping some fees on hoteliers imposed by local communities, but they also include one interesting proposal which could make many Russian and Ukrainian tourists and other foreign investors very happy.
Tourist officials noticed the statistical data that showed an increasing number of travelers visiting Croatia from these two former Soviet countries during the past couple of years, despite the fact that the visa requirements were quite rigid. Everybody knows that guests from Russia and Ukraine are good spenders and that the price isn’t a real problem for them, even during the crisis. This of course does not yet mean the real estate market in Croatia is opened for buyers from the east as it is for European buyers, but the number of Russians dealing with property investment in Croatia has also been growing for the past couple of years, so this information about the new Croatian visa regime can only benefit future business for eastern real estate investors in Croatia, not to mention the benefits for Croatian tourism.
If we take into account that the current situation on the real estate market in Croatia is not so bright, it is not hard to realize that some fresh money could do wonders, especially when we are talking about rich eastern businessmen who mostly buy expensive villas and other exclusive properties in Croatia.

Many Croatian politicians have claimed that Croatia’s entry to NATO is going to boost foreign investment interest and generally contribute to a positive picture about Croatia in the economic world.
Croatia and Albania are two nations that entered into the alliance during the last meeting in Strasbourg, which could eventually pave the way for European Union membership.
Will this also bring a bright future for the economy and the real estate market in Croatia? Can being a member of NATO be beneficial for a country’s economy? Yes it can, but in the end it all depends on many different factors.
NATO membership can be fundamental in inspiring confidence for foreign investors regarding the country’s institutions and political leadership, which is important for economic development. This has been clearly displayed in the case of Romania. Security is also a big issue, and this does not only mean military security guaranteed by the alliance. Big investors like to invest in countries which have satisfied some basic democratic and economic standards, and instead of having to check this themselves, they simply take NATO membership into account. It is therefore likely there could be some increases in foreign investments after the crisis is gone. And there is also tourism, Croatia’s biggest branch of economy. Tourists love to see that the country they visit has sort of an image. NATO and EU membership contribute to this to.
It is safe to say that NATO membership can’t hurt a country or it’s economy, but it also does not guarantee any kind of prosperity or economic benefit, unless if you’re in the arms business. What it does bring is stability, guaranteed stability to be precise, and anyone who has ever dealt with property knows that stability is beneficial for the real estate market in any country. This also applies for Croatia too and it has already made some analysts predict that the Croatian real estate market will recover as soon as this summer.

On the assigned day of completion, the buyer and seller will be presented at the office of the Notary to sign the title deed.
The Croatian Notary does not check any terms when buying property in Croatia, but certifies that both parties have agreed to the terms stated. At that stage your agent will prepare a copy of your contract and all other necessary documents to be sent to the Ministry of Foreign Affairs of Croatia.
When acquiring a property in Croatia, foreign citizens need to obtain the approval of the Ministry of Foreign Affairs of the Republic of Croatia. This is a formality that requires 12 to 18 months to complete. Applications are not refused unless the individual has an adverse history with relation to Croatia.
In Croatia the ultimate proof of ownership is entry of the owners name in the local Land Registry. The local courts will not allow a foreign citizen to be entered in the Land Registry without the approval stated above. Here is a list of the documents which have to be supplied to the Ministry when requesting an approval to purchase property in Croatia:

The sales contract;

An excerpt from the land registry for the particular property. This document is usually obtained in each municipality at the local municipal court; it’s land registry division;

A document from the local municipality, from the following department: “Ured za prostorno planiranje”. The document is called “Uvjerenje o namjeni”, for the particular property;

Proof of citizenship for both buyer and seller; any photocopies have to be reviewed by a Croatian Notary Public

When buying property in Croatia, a clause in the contract safeguards your finances, protects your rights and allows you to take advantage of your property with immediate effect while you wait for the paperwork. Once the approval arrives from the Ministry of Foreign Affairs of Croatia your agent will fax it to the local Land Registry and confirm you as a new owner. The final step of the process is to pay the tax for your new Croatian property.

The geographical position of Rijeka is crucial for its tourist image. This is where a visitor in transit meets the sea for the first time. The access to Rijeka is extremely attractive and the access from the sea offers the most charming view on the city. The natural and cultural features, the Mediterranean climate, surroundings of the mountainous landscape add to the value of the city. The area around Rijeka represents the most developed tourist region in Croatia, with a tradition dating back to the 19th century and the times of Habsburg nobility. By being the third largest city in Croatia and an important business centre, Rijeka has developed into a strong centre of business tourism and it hosts important business events, so congress tourism increasingly gains on importance. Trsat, the centre of Marianism in this part of Croatia, makes Rijeka the centre of religious tourism as well. The town is almost grown into one with Opatija - the oldest and the most renowned tourist centre in Croatia.
Apart from quality accommodation, shops, theaters and entertainment, visitors can attend important cultural events.

Here is some more facts about Rijeka. It is a city and port on the northern coast of the Kvarner Gulf, cutting deep into the mainland. Population of the town itself is 167,964 and the metropolitan area numbers almost 300,000 inhabitants. An average temperature in January reaches 5 °C, and in July 22.8 °C. The annual rainfall is 1,600 mm with 2,120 hours of sunshine a year.

Good connections with the hinterland, modern port facilities and strong naval and commercial tradition helped Rijeka to develop into Croatia’s biggest port. It also represents an important European transit port. Rijeka is also a cultural and artistic centre, with a number of cultural and educational institutions and schools. In Rijeka and its surroundings, manufacturing industries, traffic and various services are concentrated, while tourism, farming, forestry and fishing represent chief occupations in its wider area. It is the main crossroad of the Adriatic tourist traffic, which flows from central Europe to the central and southern Adriatic. It is also an important traffic intersection, with roads connecting the city with the hinterland through Gorski Kotar and an important railway junction. The airport “Rijeka” is located near Omisalj on the nearby island of Krk.

These are all strong reasons for investing in property in Rijeka. The real estate market in Rijeka is stable and the city economy is strong, which can ensure the market will remain strong in the future as well. Tourist image of the region and its potential for future development also makes a strong reason for investing in real estate in Rijeka.