If the accommodating local population and beautiful architecture weren't enough, Croatia's seven attractions of world heritage importance should seal the deal for undecided tourists and investors

As a general rule, you can often rate a country by the number of times it features on UNESCO’s World Heritage List. In Croatia’s case, an impressive seven ‘must-see’ spots, ranging from the ancient walled city of Dubrovnik to the spectacular Plitvice Lakes National Park, receive the UNESCO accolade of excellence.

Croatia’s natural beauty, style and appeal, it seems, is universal and undeniable. George Bernard Shaw once declared; “If you want to see heaven on Earth, come to Dubrovnik,” and the late great French diver Jacques Cousteau described the waters off the Croatian coast as “the cleanest and clearest in the world.”

In more recent times, Croatia has attracted praise from the likes of movie stars John Malkovich, who bought a magnificent villa there, Elizabeth Taylor, who described the Adriatic as one of her all-time favourite places, and also Prince Charles, who was once rumoured to be considering buying a hideaway on the remote island of Mljet.

In Dubrovnik, locals have recently spotted Roger Moore, Kevin Spacey, Mickey Rourke, Beyonce and Jay-Z and the much-travelled Michael Douglas and wife Catherine Zeta Jones.

It is easy to see why both famous and cost-conscious investors are calling Croatia – in particular the islands off the Dalmatian coast – idyllic yet more affordable than the Cote d’Azur. Investors certainly get a lot more property for their Kuna. It’s more than just value for money, though, much of the appeal of Croatia lies in its rich history and culture, while still being intent on keeping up with the trends and demands of modern living.

Golf ace Greg Norman is involved in a £794m sporting development on the outskirts of Dubrovnik and the world‘s first rotating luxury hotel is to be built on the island of Solta, near Split, at a cost of £70m.

Meanwhile, hot-spot Dubrovnik continues to scoop travel awards and was recently been named as the prime European destination in a list of the world‘s Top Ten destinations compiled by British Airways.

Classic style
Essentially a medieval settlement, Dubrovnik was founded in the seventh century and once rivalled Venice as the centre of maritime trade. Its remarkable Old Town has remained almost untouched by the passage of time; impressive public buildings, Baroque, Gothic and Renaissance splendours, fountains and period churches rub shoulders seamlessly with green-shuttered stone houses set in fascinating narrow alleyways and steep stone steps. Today, Dubrovnik attracts tourists from all over the world who marvel at the spectacular aerial views as they walk around the high city walls that have kept out invaders through the ages. A stroll back through time begins as visitors enter the city through a working drawbridge and portcullis, then from above the rooftops can gaze down on a dazzling display of terracotta tiles, spires and monumental domes, peering into shady courtyards decked with fluttering laundry lines, bougainvillea and pots of bright red geraniums.

Market opportunity
Just a brief boat trip away from Dubrovnik’s picturesque harbour is the peaceful, traffic-free island of Lokrum, home to a stunning monastery set in a botanical garden where the only sound is the buzzing of the bees.

For a memorable inland excursion it’s worth making the 18-mile trip to the Trsteno arboretum, the oldest in the world, dating back to 1492.

America’s Businessweek magazine recently highlighted Croatia as one of today’s ‘hot markets’ for international property, and pointed to the flurry of reasonably-priced luxury development which is now taking place in the area around Dubrovnik.

The property market has drawn benefit from Croatia’s entry into the North Atlantic Treaty Organisation (NATO) last April. Croatia, along with Albania, were welcomed as the first members of the expanded alliance to join NATO for five years. And NATO spokesman James Appathurai said they had “worked very hard to meet alliance standards with regard to democracy and the reform of their militaries.” Observers were unanimous that Croatia’s new status would bring a boom of foreign investment to the country - including an increase in the property market - but an even bigger boost lies ahead. Croatia expects to be welcomed into the European Union in 2010 or 2011 which will bring many economic and trade benefits. The republic, once part of Yugoslavia, is already classified as an emerging and developing economy by the International Monetary Fund and a high-income economy by the World Bank.

As recently as five years ago, it was feared that Croatia might make the same mistakes as the Spanish Costas, allowing a wave of concrete-box second homes to sprout up everywhere. In June, 2004, however, the government wisely called a halt to all new development within one kilometre of the coast. This lasted for two years and helped deter the worst kind of coastal blight seen anywhere in Europe.

A perennially popular destination with sun-seekers, investors and retirees alike, Croatia’s biggest trump card is its magnificent coastline, with more than 1,100 islands set in the sun-warmed Adriatic. To the north is the Istrian peninsula, whose western coast looks across to Venice. In the south is the Dalmatian Coast, whose jewel, the city of Dubrovnik, has been beautifully restored since its bombardment in the civil war of the early 1990s.

For those who now fancy a move to a sunny Croatian islands, where should they start looking?

Star-spotting
How about Brac, the largest of the southern Dalmatian islands at 153 square miles, just an hour by ferry from Split, the largest coastal city. Here, one-bedroom and two-bedroom apartments on a new development, with shared swimming pool, cost from £81,000 to £238,400.

Hvar, dubbed ‘the Ibiza of Croatia’ for its nightlife, has also acquired a reputation as a chic holiday spot thanks to visits by Princess Caroline of Monaco, Formula 1 tycoon Bernie Ecclestone and his then wife, Slavica, who is Croatian, and legendary designer Giorgio Armani. Hvar is also just an hour by hydrofoil from Split.

One British couple who have found their place in the sun without breaking the bank are Nigel and Shirley Heyward, who quit the UK to open a holistic retreat offering aromatherapy, reflexology and life coaching in the village of Diklici, near the tourist resort of Porec, Istria.

The pair bought a 200-year-old semi-detached three-storey stone house plus an outbuilding for £62,000 four years ago, then spent £135,000 on restoration work. They now live in the converted outbuilding and rent out the four bedrooms in the main house to holidaymakers. The couple grow their own grapes to make wine and Nigel says: “Making the wine has also helped us make friends with our neighbours. The Croatians are very hospitable. All the dramas we went through to make the place habitable have been forgotten and for us the house represents a real labour of love.”

For those looking for a bargain basement buy, there are discounted new one-bedroom apartments on offer at Cavtat, 12 miles from Dubrovnik, at £89,000. They are a handy four miles from the international airport and just 200 metres from the sea. At the other end of the scale, a completely renovated eight-bedroom stone house, on three floors and in the centre of Dubrovnik went on the market recently at £1.6m. However, investors don’t necessarily need millions to buy in the city. A 45 sq m one-bedroom apartment, on the first floor of a 400-year-old renovated house, just 100 m from the domed St Blasius Church, was marketed recently at £203,000. Not a bad price considering the owner will be able to enjoy the delights and sights of living right in the heart of one of Europe’s most beautiful cities.

Driving Dubrovnik onto the global golf map
Golf ace Greg Norman has designed 70 courses on six continents, now turning his attention to Dubrovnik. An investor in the new £794million scheme to build two top-class courses, an 18-hole traditional course and a six-hole course that will also serve as practice grounds, an academy at the top of Srdj hill will be named after the great man. The Dubrovnik Golf Park project will include an equestrian club along with other sports and spa and wellness facilities. All the infrastructure links with the city will be developed fully and it is hoped that an area that is currently neglected will be turned into a vibrant part of the Croatian tourist industry. It will allow Dubrovnik to stage major professional golf tournaments and improve the city’s standing in the global tourism market.