The Croatian embargo on the sale of land to the foreign citizens of the EU is about to end, and that can already be noticed by the interest of citizens, and the rising prices of properties.
But, even though the prices are on the rise, they are still much cheaper than in the rest of the European countries.
Croatian arable land is the cheapest in the EU
The prices of agricultural lands depend on many different factors, from national legislation, regional characteristics, to the market power of supply and demand.
Thus, for example, the average price of land in continental Croatia is 3,200€ / ha, but if you wish to purchase high-quality arable land the price might go up to 10,000€ / ha.
In neighbouring Slovenia, the price for arable land is almost six times more expensive, and in Italy that goes up to 13 times more expensive.
The Agricultural Land Trade Agency expects the price to increase by 100-200 euros per hectare in the coming years but notes that the agricultural land market is very unstable and depends on many predictable and unpredictable factors.
The embargo is about to expire
The embargo on the sale of agricultural land to foreigners is about to expire on June 23rd 2023., so many people are looking into buying agricultural land as soon as possible.
Croatia has ensured a 7-year transition period in which it has maintained restrictions on the sale of agricultural land to foreigners, with the possibility of extending this period by another three years.
The main reason to do so is to "protect the socio-economic conditions for agricultural activities after the introduction of the single market and the transition to a common agricultural policy in Croatia."
The biggest novelty of the amendments to the Law on Agricultural Land is the state right of first refusal of land.
The state or the line ministry will be obliged to inform the seller of the acceptance of the offer within 30 days of receiving the written offer. If the ministry does not respond within that period, the owner may sell the land on the open market, but not at a price lower than that offered to the state.
Will the purchase of state land become a mass phenomenon?
The Ministry of Agriculture said that the foreign citizens are most interested in areas over a thousand hectares, but there are no such vacant lands.
In addition, the latest legal changes do not give up the right of priority, so the priority in buying the land remains to previous owners and the owners of bordering lands.
Also, the rule that one buyer can buy a maximum of 50 hectares of state agricultural land in the continental area and up to five hectares in the coastal area, remains the same.
It is yet to be seen if the purchase of state land will become a mass phenomenon in the upcoming year, but we are sure that buying a property in Croatia is a great investment, as the value of properties is on a rise