Foreign buyers attracted to Corfu and some Balkan property markets, says new report.

Corfu’s position as a high end recreation destination means that its property market has proved resilient when set against the markets of mainland Greece, according to a new analysis from real estate firm Savills. Prices are down by around 30% from their former highs in the desirable north eastern coast of the Greek island, but this is much less that falls in excess of 50% in mainland cities.
The analysis suggests that the market seems to have bottomed out so good deals are on offer. However, it points out that demand is selective and turnkey properties are favored, while the market for building plots has all but disappeared.
British, German and French buyers account form most of the purchases and most sellers are Greeks. The recent introduction of a golden visa program is anticipated to generate interest from Chinese and Russian buyers in particular.
In the nearby Balkans property markets are also attracting foreign buyers. A sovereign state since 2006, Montenegro has enjoyed strong economic growth and inward investment in recent years, the report says. It offers a favorable tax climate and pro-business environment.
Real estate investment has been focused on the Bay of Kotor around the old Mediterranean port and when complete, it will include Europe’s first ‘One & Only’ resort. Porto Montenegro is already established as the Mediterranean’s largest super yacht marina.
Russians are the biggest non domestic buyer group, while Montenegro’s open investment environment has attracted institutional investment from the Middle East.
Like the economies in many Mediterranean states, Montenegro’s rapid growth came to a halt with the global financial crisis. Its emerging real estate investment suffered as a consequence, with volumes today down 40% from their former highs.
Croatia was another country hit by the Eurozone debt crisis. Residential property prices fell significantly in the global downturn, but have stabilized in the last year. Apartments on the coast have now risen slightly in value, by 1% in the year to January 2014.
Croatia is a country of 4.3 million people with a coastline of some 6,268 kilometers in total, the 20th longest in the world, so it offers a wealth of options for those seeking seaside properties.
Buyers here are diverse. At a national level, Slovenians account for the largest proportion of international buyers, some 43% of all foreign purchasers between 2010 and 2012, for example.

Germans, Italians and Austrians account for 35% of buyers, concentrated in the north of the country. Buyers in the south include Swedes, Slovakians and the British. The latter are particularly attracted to Dubrovnik, a UNESCO world heritage site. This is among Croatia’s most resilient residential markets and seems to attract buyers with a preference for exceptional and historic buildings, in the same way as the Venice market. Historic apartments inside the city walls still offer rental yields exceeding 6%.