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Investors encouraged to consider Slovenia

Investors encouraged to consider Slovenia

Wednesday, 1 March 2006 12:00 AM

Overseas property investors looking for their next investment destination could do worse than consider Slovenia.

The country, formerly part of Yugoslavia, has prospered since independence, and of the new countries to join the EU in 2004, it had the highest GDP.

The advent of EU membership has made it far easier for overseas investors to buy property in Slovenia, while budget airline connections to the capital Ljubljana have made it far more accessible.

The country was recently rated as eighth in a list of the top 20 places to make money from property over the next decade.

The survey, by Channel 4's A Place in the Sun, predicted returns of 278 per cent.

Previously, Brits were able to buy property in Slovenia under a reciprocal agreement, but the process was slow and cumbersome.

Since EU membership any EU resident can buy a property in Slovenia, all going well, in a matter of weeks.

Tourism has been the fastest growing industry in Slovenia for the past five years running, meaning there is plenty of demand for holiday homes.

The country, which is nestled between Italy, Austria, Croatia and Hungary, attracts tourists with its mix of Alpine mountains, small but beautiful coastline, ancient walled towns and the cosmopolitan city of Ljubljana.

Although foreign visitors increased by only two per cent in 2005, there was a significant increase in tourists from the UK, as well as Italy and France, according to figures from the Slovenia Chamber of Commerce.

Jure Pozar of the Homebuyer Show, where the Chamber of Commerce will be exhibiting, said: "The Slovenian property market has been advancing well and we are expecting strong growth in the near future with trends showing an increase in sales of properties, especially to UK residents.

"Slovenia is already very popular with holiday home buyers and is getting more popular with property investors who are just discovering the country."

British property buyers tend to favour older properties in Slovenia, such as stone houses, which can be purchased for about ?35,000.

However, new developments near the capital Ljubljana, where modern houses and apartments can be purchased for ?150,000 to ?300,000, are becoming more popular.