Within an hour's ferry ride from Split, the cobalt-blue waters of the Adriatic lap a white rocky shoreline rising up to vivid green pines. This is Brac, the first in a trio of islands of profuse natural beauty and booming tourism.
In the summer months holiday-makers flock to the rocky ledges and shingle shorelines (and increasingly upmarket bars and restaurants) surrounding the picturesque harbours of Brac, Hvar and Vis. By contrast, the interior plateaux of olive groves and vineyards, interspersed with enchanting villages and surrounded by craggy, pine-clad ridges on Croatia's islands, are a haven for walkers, artists or those seeking solitude.
For the handful of foreigners interested in relocating here and the much larger group snapping up holiday homes (often to rent out when they are not there themselves), smart apartments are an easy option, while, for those willing to renovate, the islands' older properties offer more charm .
There are hurdles, however. Transport costs for building work can go be as much as 30 per cent higher on the islands as on the mainland. And entire towns such as Stari Grad and Hvar town on Hvar, Nerezisca and Skrip on Brac and the ancient town of Vis are protected by the ministry of culture, as are some individual properties.
"Buyers must first understand the reconstruction possibilities before they take on an old property, otherwise their development plans for a good investment may well come undone," warns Paul Keppler of Croatiansun. "Guidelines must be approved by the local conservation office before location and construction permits can be obtained [and] protected properties may only be renovated under the guidance of architects and construction companies with authorised permits."
That said, government regulation is also intended to help newcomers, protecting against overdevelopment, trying to maintain the unspoilt essence of island life and head off any looming property market bubble.
Brac
Brac is the largest of the central Dalmatian islands and the third largest in the Adriatic. But, despite having an airport with direct flights from Zagreb, it contains just two bustling resort towns. Bol and Supetar are also the main entry points by ferry from Split, with quieter villages around these hot spots also reaping the benefits of the busy tourist season.
Bol has one of the most famous beaches in Croatia and a pine tree promenade connecting the bustling town centre to the main hotel area. With fast boat connections to Hvar town - the high-flying party destination on the island opposite - regular and direct ferries to Split and Brac airport just 14km away, Bol is a top spot for foreign investment. An old stone property in need of renovation can be purchased for about €130,000, with prices for higher-quality, new-build apartments approximately €2,000 per sq metre.
Quieter holiday retreats can be found 4km west of Supetar, in the pleasant coastal town of Splitska, where children frolic around the harboured fishing boats and bougainvillea brightens up the streets behind. The easy access and soothing atmosphere is ideal for families and there are many suitable properties. A large house split over two floors, each containing two bedrooms, a bathroom, kitchen and living room with an upper terrace offering views over the bay, accompanied by a garden spacious enough to build a pool, carries a purchase price of €300,000. A more affordable option 10km east of Supetar, a five-minute walk to the coastal town of Sutivan and 150m to the nearest beach, is a complex of 18 apartments with sale prices ranging from €138,000 to €159,500.
If a new-build with an older style appeals, the charming old town of Dracevica in the east inland south of Supetar may provide the answer. A detached, three-bedroom house with wine cellar and pool is priced at €160,000, reflecting the somewhat isolated location. Secluded areas might not provide the highest rental value now but buyers have begun to look for areas where tourist amenities are planned. For instance, the quiet port town of Sumartin on the east coast, where the only mainland ferry connection is to Makarska, may soon get a marina with four golf courses on the hills behind.
Hvar
Best known for its lavender and wine, Hvar has the most sunshine of the Croatian islands, the most bubbling nightlife and the most lavish boats docked in its harbour. It is two hours by ferry and 45 minutes by catamaran from Split, so relatively easy to get to, and with a new airport planned in five years, demand for properties is rising.
In Hvar town, impressive steep-sloping, 13th-century ramparts overlook pedestrianised marble streets lined with boutique jewellery, clothes and art shops, as well as cafés and nightspots. But potential buyers are facing limited availability because the town has now reached its infrastructure and development limits. One of the last remaining new-build opportunities within walking distance of the city centre is the Adriatica apartments. Facing south-west and just 150 metres from the beach, its 12 one-bedroom apartments are priced from €95,800 to €144,500.
Opportunities to purchase old properties with character around town are very rare. However, British and Irish buyers last year found success in Zaraca, a small south-facing village nearby, when two owners of the 15 or so mostly derelict properties that make up the village decided to sell. A similar, but smaller-scale proposition is currently on offer in the southern village of Gornja Jagodna; two 39 sq metre houses in need of renovation but with 180° sea views can be had for €45,000.
There is also up-and-coming Jelsa, which now has designer bars, cafés and clubs to complement its historical beauty. An annual wine fiesta and plans for a marina have raised the town's profile, it has a direct catamaran to Split and it offers greater development potential than Hvar town, including a planned 35-apartment complex with pool, sauna and restaurant.
Meanwhile, the small village of Pitve near Jelsa is full of mature, picturesque charm and has a gallery famous across the island. An old stone property with renovation potential is currently on sale for €220,000 but since the basement was a nightclub five years ago it is more likely to be converted into a boutique hotel than an individual residence.
Vis
For holiday-home buyers who want to get off the beaten track, Vis is ideal. Its mountains are so secluded they served as a hiding place for Tito during the second world war, and its long-term residents are resolutely rural, with fishing as their principal livelihood.
The island has retained its traditional character in part because it served as an army base until 1989, before finally being opened to tourists. Officials have also mandated that it be preserved in its natural condition wherever possible, so there are significantly fewer properties for sale than on Hvar and Brac. Transport is also a problem. While two-hour, direct ferries link Vis town to Split (with bus connections on to the charming old fishing town of Komiza) the service is not nearly as regular as those to Brac and Hvar. However, Vis offers an unparalleled tranquil escape and lower list prices as a result
Purchasing land is one option for those willing to liaise with the locals, although buyers must be especially clear on building and reconstruction laws. For example, if there is an older house on the land, renovating it in a traditional style would be permitted but if there is only a pile of stones, it may be difficult to determine what new structure can be erected.
Prices for old stone houses in need of work range from €120,000 to €180,000. For new-build locations, Rucavac on the south-east coast is popular. Eight kilometres from Vis town and 16km from Komiza, the town sits on an expansive hillside amid numerous hiking trails that offer panoramic views of nearby islands such as Palagruza, Hvar and Lastovo. A modern, two-bedroom house in this location is available for €150,000, while a property divided into separate two- and three-bedroom apartments, complete with cellar and garage, is offered at €140,000.
SETTING UP SHOP IN BRAC
Island life in Croatia teems with activity in the peak summer months, but in the off season it is a much quieter place, populated by locals with mainly rural livelihoods, who live in secluded, tight-knit communities. Indeed, many of the younger generation have left to seek more dynamic lifestyles elsewhere.
Still, there is a growing appeal to living in the Dalmatian islands year-round. Some emigrants are returning, trying to capitalise on the booming tourism and property business. And increasing numbers of foreigners are settling there too, among them Martin and Angie Hill from Devon, who relocated to Brac in 2003.
Angie explains: “We were completely dissatisfied with our lifestyle in England. The most obvious solution was a complete change, meaning location as well as our careers in IT and contract roofing. We investigated relocation to Australia, America, France and Spain but each destination fell short when we assessed what was most important to us. We wanted to be situated only a few hours’ flight from the UK, so as not to be too far from family, we certainly didn’t want to end up in a British community, and we also needed to find real opportunities for setting up our own business, as we didn’t have the capital to purchase an existing one. After watching a TV programme on Croatia, we felt we had found the right place.
”In October 2002 we flew to the Dalmatian coast, where we stumbled across Brac. The bustling summers of Bol contrasted with sleepy winters, providing a set-up we were eager to experience. In May 2003 we returned to Croatia in search of a reliable estate agent, which proved far more difficult than anticipated. Having eventually found someone via a waiter in a local restaurant (whose father knew a man who did some part-time property negotiating), we were shown an unfinished house. It was surrounded by olive groves on the outskirts of town and at €80,000 was too good to pass up.
”In December we arrived on a catamaran with just two suitcases. We moved into an apartment and prepared to build our home, which was to cost us a further €35,000. We didn’t know the language, and in fact are still learning it, but from our previous two trips we knew there were enough people who could speak English for us to get by. We had an enormous amount of help from the previous owner of our property; it was almost as if he felt some responsibility towards us, and we have been good friends ever since.
”It was during the building of our house that a Croat estate agent suggested he provide properties for us to sell to western Europeans, as we would understand their expectations better. After considerable hard work in learning how to start a business here, negotiating the long and winding roads of the administration jungle, we opened the first real estate agency office for the area on the seafront in Bol.
”Our intention has always been to blend in with and contribute to our local community. Above all we wanted to experience a completely different way of life and this is exactly what we have found. Croats are very honest and their direct approach, though refreshing, did take some getting used to. The initial reaction from locals was cautious, as they couldn’t understand why we wanted to move here permanently. Our enthusiasm for hard work soon gained us great respect, and although there are always challenges to overcome, the rewards are immense and we now feel that this is not only the fresh start that we hungered for, but also a lifestyle to learn from and enjoy.”
