Finding a Villa on Croatia's Adriatic Coast

Savvy Europeans have discovered Istria, the heart-shaped Balkan peninsula that's a bit like Tuscany—at a fraction of the cost.

By Anna Brandt

Calling an emerging destination the next Tuscany has become something of a travel cliché; can any place measure up to that fabled region? But the Istrian Peninsula, a heart-shaped piece of land jutting into the northern Adriatic Sea, really does share some of Tuscany's best traits. Though the war in the early 1990s pockmarked much of Croatia, within whose borders most of the peninsula lies, Istria's lush valleys remain blanketed with olive groves and vineyards. Its coastal cities, full of sunny piazzas and Roman ruins, can feel more Mediterranean than Slavic. In the medieval hill towns, you're never more than a forty-five-minute drive from the sea. And there is still an absence of crowds, a huge draw for second-home buyers.

"Istria is relatively untapped," says Kathleen Peddicord, head of International Living, which researches global real estate investment properties. "There are no busloads of tourists here." Though the area's property market has mushroomed in recent years, prices haven't caught up with those in neighboring Italy. Which means that $50,000 buys a 300-year-old fixer-upper and $1 million gets you a sumptuous seaside abode that will only increase in value as this region is discovered.

Lay of the Land

Most towns and villages along the meandering coastline are overdeveloped; those in package-holiday havens, like Porecç, are tacky. Fortunately, you can still find quiet coastal enclaves, such as the pine-tree-shaded fishing village of Savudrija in the north. A few miles inland, the active beach scene melts into the Tuscanesque landscape, particularly the Mirna Valley, full of wheat fields and vineyards and overseen by medieval mountain fortresses set like dollhouses among the craggy peaks.

Who You'll Meet

Laid-back British celebrities, like Jeremy Irons and Sting, along with old-money Italians and new-money Russians, have paid top dollar for homes "first row to the sea," as Croatia Property Services' Peter Ellis puts it. Heading inland, you'll find western Europeans buying up old stone farmhouses as second residences where they live alongside Croatian and Serbian villagers who've called these hills home for generations. Americans, who tend to still associate Croatia with the war, have been slow to heed Istria's siren song.

Where to Stay

Hotel San Rocco The twelve-room hotel, composed of several stone buildings surrounding an azure pool, provides a taste of Istrian villa living--without your having to buy the villa. Some of the wood-beamed rooms command views of the sea and the village of Brtonigla and are decorated with antiques. Rooms from $173; 011-385-52-725-000; san-rocco.hr.

Valsabbion Hotel This contemporary sanctuary is set above the marina about three miles south of the busy beach town of Pula. The ten clean-lined guest rooms, four with balconies facing the sea, have leather sofas and simple glass and wood objects. Valsabbion's restaurant, serving Istrian cuisine with an emphasis on seafood, consistently ranks as one of the region's, and Croatia's, best. Rooms from $187; 011-385-52-218-033; valsabbion.hr.

Villa Terra When the jet set come to Istria, they skip the local hotels, opting instead to rent renovated villas. Several real estate agencies in Croatia offer rentals, but HomesAway has the cream of the crop: a four-bedroom restored stone estate twenty-five minutes from Pula with an outdoor pool, a fully equipped fitness center and a beamed, stone-tiled chef's kitchen (with a private cook). From $12,500 a week; 800-374-6637; homesaway.com.

Where to Eat

Monte Restaurant Locally smoked ham is perfectly matched with spicy figs and Istrian olive oil, and entrées include grilled sea bream with squid-ink sauce, a dish that's made Monte a regional favorite. The wine menu shows off the best of local vintages, including the light white Malvazija and the full-bodied red Teran. 75 Montalbano, Rovinj; 011-385-52-830-203.

Restaurant Zigante In the hill town of Livade, chef Damir Modrusan's four- or five-course menu may kick off with a beef carpaccio topped with white truffles, move on to pasta with octopus and truffles and tuber-infused rillettes of lamb and finish with vanilla ice cream--with truffles. 7 Livade-Levade; 011-385-52-664-302.

What to Do

Limski Kanal Midway down the western coast, you'll find the Limski Kanal, a turquoise tree- and Stone-Age-cave-lined inlet called a ria. A road runs along it, but the best way to see this stunning area is by boat. Mussels and oysters are cultivated in these waters, and you can try both at Morgan and Lim Fjord, the restaurants at the end of the ria. While you're there, visit winemaker Ivica Matoševič (matosevic.com) and sample some Malvazija.

Veli Brijun After World War II, Yugoslav leader Marshal Tito made this wooded island off the coast near Pula his private getaway, filling it with exotic animals (zebras, elephants, llamas), planting indigenous flora and entertaining everyone from Ho Chi Minh to Sophia Loren there. Tito is long gone, but some animals remain in this peaceful Communist relic. 011-385-52-525-883; brijuni.hr.

If you prefer sitting back and enjoying the scenery to worrying about directions, hire the dependable Zvjezdana Rudelic, who will chauffeur you anywhere in Istria in a BMW 7 Series luxury sedan. 011-385-995-185-541; vox_zvec@yahoo.com.

Before You Buy

The Croatian property market, while brimming with fantastic offerings, is not very well regulated and still suffers from some arthritic Communist-era bureaucracy. Keep these tips in mind:

Check the Title Ask to see an up-to-date title. Be sure that the seller is the owner listed on part B of the title and that there are no liens or debts against the property in part C.

Check the Fine Print Croatia does not permit foreigners to carry mortgages. If you can't pay cash for the property, you'll have to set up a company to get a mortgage.

Be Patient The entire process can easily take up to six months, longer if you plan to use your property as an investment.

Be Agent-Picky The following are the best. Iva Zaja, a native Croat, is the Istria specialist for Croatian Sun, a residential and commercial property firm. Zaja attended college in the United States and has advised many prominent investors (including John Alm, the former CEO of Coca-Cola) on acquiring Croatian property. croatiansun.com; iva@croatiansun.com; 011-385-1-489-8010. At Croatia Property Services, the English-born Peter Ellis and his wife, Ksenija, a Croatian lawyer, help expatriate buyers find upscale properties and navigate the market. croatiapropertyservices.com; 011-385-99-693-8856.