Croatia has been a favorite summertime vacation destination for European travelers for several decades now, but in recent years – particularly in the wake of the Covid-19 pandemic – it has experienced an unprecedented boom in tourism, attracting an even larger number of travelers from all over the world, year-round.
What’s its secret?
The truth is there are quite a lot of things people love about Croatia: its idyllic climate, central position in the Mediterranean, dreamy coastline, clean beaches, picturesque medieval towns, and abundance of cultural and natural sights make it a tourist paradise.
The country boasts 8 national parks and 10 Unesco World Heritage sites, is a popular cruise ship destination, and was an iconic filming location for the hit fantasy series Game of Thrones. It is no wonder that revenue from tourism makes up 20% of the country's GDP, but it is quite remarkable that Croatia’s tourism sector has managed to bounce back after the collapse brought on by the pandemic rather quickly and successfully.
2022 numbers - both in terms of the number of tourists and the number of nights spent in the country - have significantly surpassed pre-Covid levels. This, in turn, resulted in an expansion of the country’s entire economy. The busiest months of 2021 brought in 6.8 billion euros of tourism revenue – a 100% growth compared to the same period in 2020. Statistics show that it was largely due to the lack of severe travel and lifestyle restrictions during the pandemic.
In terms of accommodations, Croatia stands out with its number of private apartments rented to tourists: they make up 86% of all accommodations, while in Greece, Croatia's biggest competitor in the Mediterranean, this number is only 40%.
As you might have already guessed, this means there is an abundance of investment opportunities in the country’s real estate sector. Croatia offers relatively low-interest rates and good credit ratings thanks to joining the eurozone on January 1, 2023, so if you are considering investing in Croatian real estate, now is a great time to do so.
If you have any questions, our real estate experts will be happy to answer them and help you get started on your investment journey! The Breeza Team