Great blend of Practical and CGI Sets
Some of the haters would have you believe that everything in this movie is CGI
They would tell you that everything was shot in a studio with no real world locations negating the fact that they went to this non CGI river
http://i.imgur.com/P1gHO3E.jpg
Some might tell you that there weren't any real movie sets either negating the fact that Peter Jackson spent million enlisted the help of some of Cinema's finest craftsmen to bring you his own recreation of laketown made of very real stone, wood, and water
http://www-images.theonering.org/torwp/wp-content/uploads/2013/10/HobbitEmbed_Laketown4_crop.jpg
PS I liked how in the movie everythin about laketown felt real and making Laketown feel like a once great place now falling apart thanks to the corruption of men
Oh and here's my favorite practical effects set used
http://www.itsartmag.com/features/itsart/wp-content/uploads/2013/12/behind-the-scenes-the-hobbit-vfx.jpg
Now I'm going to pretend that all CGI and Special Effects in this movie is perfect, there are certainly bad cgi moments, certainly during the barrel chase sequence you can tell that they were saving up their budget for smaug. But honestly in terms special effects I thought most of them were decent enough by todays standards. And to tell you the truth the Lord of the Rings Movies also had some bad CGI moments do I even need to mention the ghost army.