Oil could boost Croatia's economy

A deal that allows Iran to supply gas to Europe via Croatia could help make this former part of Yugoslavia an investment goldmine, it is claimed.

The mere mention of the word 'Iran' might put off a lot of potential investors, but such is the clamour for these kinds of resources that the idea is being discussed. It would make Croatia a hub for the supply of a valuable natural resource and very wealthy indeed.

'Most potential investors know that Croatia pretty much guaranteed EU entry in 2010. but what they don't realise is that is lies in a very strategic location that could see the supply of natural resources reaching Europe from the Middle East,' said Jack O'Sullivan, global analyst with the Croatian Bank.

'It would not surprise me if there are talks about oil and other natural resources throughout the Middle East coming direct to Europe through former Eastern European countries like Croatia,' he added.

Whatever happens with gas, or even oil for that matter, pre-EU entry buyers are going to be able to bag property related bargains because it is post entry that the real economic transformation of the nation's fortunes is predicted to occur.

Post entry Croatia will be able to trade more competitively and directly with the rest of Europe making it a more attractive nation to enter for international businesses looking for a hub in the region for example. What's more, those businesses already in operation in Croatia will be able to expand possibly, and there are predications that there will be a much more affluent economy across the country as a whole.

Other indicators that Croatia's fortunes are rising and that its citizens are benefiting is the fact that leading shopping centre developer Sonae Sierra sees potential in Croatia for the creation of new malls. This indicates that the citizens of the nation are getting richer and when this happens it creates a platform for both expanding real estate prices and greater affordability so that locals can afford to buy stock.

Also positively in Croatia's property market's favour is the fact that tourism in the nation is developing rapidly. The European Bank for Reconstruction and Development is giving Croatia's tourism industry a direct boost in the form of an equity investment worth €24 million.

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