Croatia PM: Slovenia Border Row 95% Resolved, EU Entry a Step closer

There is new hope that Croatia's accession into the European Union can get back on track after the Croatian PM Jadranka Kosor said that 95% of issues in the border dispute with Slovenia have been resolved in talks backed by the Swedish EU presidency.

Croatia's property market went through one of the most rapid growth periods of any Eastern European country after the conflict in the region was resolved and global tourists discovered the inherent beauty of the country, along with its amazing beaches and secluded bays.

Tourism turned into a massive holiday home market, and investors also flocked into the country. Its emergence as a hot investment destination was boosted massively by the growth in accessibility provided by the advent of the budget airlines, and also by its entry into the EU being on the horizon.

In fact Croatian property doubled in value between 2000 and 2007. However, towards the end of that time Croatia property began to suffer as new markets began to emerge offering similar qualities and lower property prices; places like Estonia and Montenegro. Croatia's path to EU accession becoming severely stalled was somewhat of a final nail in the coffin.

The government has made several efforts to revive foreign property investment, including giving EU residents the same rights as Croatian's when buying property. These efforts have not had the desired effect.

If Croatia can indeed gain entry into the EU it will provide a massive boost to the economy and the property market: relaxed border controls would boost the economy by increasing tourism and allowing Croatian's to work abroad bringing in worker remittances. The increasing tourism would then boost the property market by increasing rental yields.