For vacation home buyers who want the feel of Tuscany but at lower prices, the arrowhead-shaped peninsula of Istria in northern Croatia is proving to be a popular choice.
For years most of the foreign interest in Croatia's real estate centered on its southern coast. But over the last five years, as prices along that 5,000-kilometer, or more than 3,100-mile, strip climbed steadily and the supply of vacation homes dwindled, Istria emerged as a region where prices were still relatively affordable and foreign buyers were welcomed.
Martin Westby, the author of a book on buying property in Croatia, said the sales success was partly because Istria was the first area to be served by Western European budget airlines and it is relatively easy to complete a sale here in comparison to some other parts of the country.
By 2005, the region led the country in foreign ownership, with 34 percent of its properties in the hands of non-Croatian owners; the rate in the popular tourist city of Dubrovnik was less than 10 percent, according to the Croatia Chamber of Economy....

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