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Overview of Dalmatia and the region’s real estate market

Interest in Croatian real estate continues to remain high over the past years and even decades – the country is the owner of an area of ​​over 33,000 square kilometers and an impressive number of islands with more than 1000 items. The Dalmatia region and housing on its territory is considered one of the most attractive in the country.
As far back as the 4th century, the Roman emperor Diocletian, solemnly giving up power, secluded himself from society precisely in Dalmatia, which at that time was called Illyria. To the numerous calls of his comrades-in-arms to return to the reign of the empire, he answered: “If you saw how I managed to grow cabbage, you would not make me such suggestions.” The emperors in these parts have already caught a trace, but cabbage and other rich flora continue their rapid growth, attracting the next powerful people to this world who decided to live surrounded by the sea, islands, numerous oyster and fish farms and houses for every taste and color.

Croatian pearl
Dalmatia, that is, in the northwestern coastal part of Croatia, washed by the waters of the Adriatic Sea, has a Mediterranean climate with hot and dry summers. Winter is mild and rainy, and the average temperature in January does not fall below 5-6 degrees Celsius. A moderately hot and humid climate with hot summers covers most of Dalmatia in the direction from the sea to the interior of the continent. In terms of the amount of sunlight in Croatia, Dalmatia is the leader, where the average indicator is about 2700 hours per year.

Dalmatia is divided into the northern part with the main centers in the cities of Zadar and Sibenik, the middle with the center in Split and the south, where the main city is Dubrovnik. Each of these parts of the region is characterized by the presence of numerous bays, sandy and pebble beaches, fishing, yachting and other water sports are actively developed here. It is not surprising that such excellent indicators, coupled with the local language, which is quite understandable for Russian-speaking tourists, contribute to an active growth in demand for local real estate.

Dalmatia – Croatia’s leader in housing prices
According to Eurostat, Croatia is one of the three leading countries where housing prices are growing the fastest: for example, the difference between the second and third quarter of 2018 was 2.8%, losing only the Netherlands and Malta in the increase in the price of residential real estate. Such an increase in the cost of housing in Croatia is associated with an increase in demand – due to low interest rates on savings deposits, residents of the country, disappointed with this type of income, began to invest in local real estate.

It is in Split, the center of central Dalmatia, the city that is the second largest after the capital Zagreb, real estate prices are now growing most actively. For example, you can already find offers for apartments located on the ground floor, where the cost per square meter exceeds 2000 euros. As for the national average, the most expensive housing is in Dubrovnik, Split and Zagreb – 3811, 2744, 1917 euros per square meter, respectively.

Thus, Dalmatian real estate is a clear leader in Croatia in terms of prices, their growth and volume of demand. For example, in Split prices over the past year increased by 11%, while in Croatia as a whole this figure was about 8.5%. Experts believe that the current pricing policy on the local real estate market approached the historical figures of the highest prices a decade ago, when one square meter in a Croatian apartment on the secondary market was estimated at 2,000 euros.

Across the country – especially on the Dalmatian coast – active residential and commercial development and reconstruction of the coastal part continues, new marinas open. The European Union is actively involved in construction and legislative issues around the country: this year, under pressure from the European Commission, the Ministry of Construction and Territorial Construction of Croatia issued a decree on mass appraisal of real estate, which will subsequently be transformed into the introduction of a property tax, but due to numerous unresolved issues of ownership across the country, the implementation of its launch is still in question.

Prices
The most expensive real estate in Dalmatia and Croatia is in Dubrovnik, world famous for its old fortified city, which survived the Venetian, French and Austro-Hungarian dominance, thanks to which the city remained rich in diverse architecture. Now on the local real estate market of Dubrovnik and its suburbs you can find offers of houses and villas for sale, located on the first line of the sea with a cost of 2-3 million euros. Among the offers you can even find a medieval palazzo, which after reconstruction and repair can be adapted to a villa-castle or an exclusive hotel.

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