Croatia does seem to be a property hotspot. However, i think it's not a popular as it should be.

I bought a 2 bed apartment in Vodice, (north of Split). Its increased in value significantly in the past 12months. There is lots of building work going on all along the coast, but the Government are putting limits on heights and density of the buildings as to not spoil the wonderful views.

As its not in the EU (yet) you cannot take out a mortgage in the UK. There are ways round this such as setting up a company in Croatia (not too difficult). I think it is this that is holding people back from buying. Once they are in the EU (2009 hopefully) the property prices will certainly increase further. It is therefore best to get in now!!

Ivana