Interesting to read about your Croatian trip. I have been buying Tower Property (TWR) at R8, they have just bought substantial amount of property there, so was pleased to read you are positive on the country. The CEO of Tower says that property never recovered after the 2007 crash and was still good value. Have you looked at TWR?
Hi, sorry only saw the response now. I havent looked at TWR, my focus has drifted quite a lot from individual shares. I only tend to focus on countries and indexes.
The manager is right in that Croatia hasnt recovered yet, however except for your major cities. It seems very selective the areas that do well, if they have been buying those areas they will have done well. The areas being the main areas like Split (with the universities), Zagreb (the capital) and Dubrovnik This is probably because since 2010 there hasnt been any growth globally. (despite what the markets say)
My gut feeling on it though was Croatia suffers a bit from the same syndrome as our coastal towns. When times are good money hurries in very fast, but when times are tough that money dries up just as fast. Eventually there will be a cycle again when Europeans hurry there (they already love it as a holiday destination) and when they have excess cash they will buy there again, just like we buy in Margate and Plett.