According to the listing of the best international real estate countries to look to, Croatia is on the top as shown the renowned magazine Forbes.
As the Brexit approaches, there is a predictable impact on the international real estate demand. Companies that are currently based in the United Kingdom might start migrating their offices and headquarters to other countries in Europe.
Also, there might be an impact on the local real estate prices, and investors are already predicting and aware of the consequences of this change.
Some Valuable Data Confirms The Prediction
Whilst London, Geneva, Paris and Monaco continue to command Europe’s highest property prices, other cities are emerging as increasingly popular with international real estate buyers, offering excellent investor returns. Our increasing popularity in emerging European markets is testament to the growing importance of international investors in these cities.Chris Dietz, Executive Vice President of LeadingRE
LeadingRE is a consortium of almost 600 international real estate brokerages in 70 different countries. They provided this data exclusively to Forbes magazine.
What is more impressive is that Croatia, in particular Zagreb, is ranked at the top of the list, showing an increase of 20% on prices. Also, a 30% increase of adverts on the main rental portals, such as Airbnb. And the estimative of 20% of the purchases being made by international real estate buyers.
Know Where To Invest
Real estate price in Croatia is constantly rising, the number put Croatia on the third place of the property price risers of the European Union. In the third quarter of 2018, Croatia came after Netherlands and Malta, with 2.8%.
The avarage of price rise in the European territory was of 1.5%, with some of the most famous holiday destination countries dropping by 0.8% in Italy and and 0.7% in Romania.
However, investors from all the globe are focusing more and more on purchasing or investing in a real estate in Croatia, due to the benefits the country now presents and keeps proving in numbers the potential it has and will have in the future.
Due to this fact, the The World Bank, which is formed by five institutions working for sustainable solutions to reduce poverty and build shared prosperity in developing countries, has positive perspectives about Croatia’s economic growth this year.
The prediction of this year is, an increase of 2,8% Croatia’s economic growth, according to what The World Bank has revealed this Tuesday.
“The World Bank projects that Croatia’s economic growth in 2018 was 2.7%, revising upwards the projection from last June by 0.1 percentage points, while upholding the growth projection for 2020 at 2.8%. The projection shows that in 2021, the growth is to slow down to 2.6%.”
Real estate investing varies from country to country. Investors looking for the best return on investment, but also to invest on a property that they can take advantage of this investment, in a country that they can enjoy it.
The luxury real estate is taking over the industry in Croatia, starting from the hospitality industry, that saw the potential of the luxury stays, throughout the stunning Croatian coast line combined with an extremely rich culture and gastronomy.
Together with it, a wave of investments developing the infrastructure, is making the country even more attractive not only for hospitality but for luxury real estate investing.
Sotheby’s International Realty
According to the director of Sotheby’s International Realty Croatia, director Marko Pazanin, there is an increase of 25% in Luxury listings “Clients are mostly German, Austrian, Czech and Slovakian nationals, followed by clients from Scandinavian countries and England,”.
This increase, has a lot to do with the country itself, and also the advantages and high return on investment that Croatia presents to investors worldwide.
Schengen is, in fact, named after a village situated in Luxembourg, a small country surrounded entirely by Belgium, France and Germany. In 1985, the cooperation of governments directed to the signing of an agreement, in this agreement it was fixed a gradual abolition on checks and control on the border, easing the free movement of the european working population, that needs entering and exiting those borders.
In 1990, there was the implementation of this agreement, it started with 7 EU States in 1995 and now, is implemented as part of the body of rules governing the European Union.
A huge loan designated to real estate Croatia is ahead, and coming from The World Bank Group.
For the ones who don’t know The World Bank Group, it is nothing more nothing less than the world’s largest sources of funding and knowledge for developing countries.
Their intention and commitment is to reduce poverty, increase shared prosperity, and promote sustainable development. And the Country now on their table is Croatia.
19.7 million euros on its way to Croatia
An incredible amount of 19.7 million euros to develop, ease and improve the Administration System Project.
The advance is clearly on the days of waiting at Land Registry Offices that decreased by 75% from 46 to 12 days, for mortgages and property transactions, and also on the Cadasters Offices, decreasing by around 33% from 30 to only 8 days.
But it has been coming this way since 2016
Long ago in November 2016, a system called Joint Information System was implemented, it is easy, completely accesible and modern, so people can register online with their personal details, instead of the going through the painful experience of having to go to a public office.
You will find that plenty of the real estate Croatia opportunities are located in the overcrowded cities. And, if you have done some initial research on real estate investment opportunities, you will most definitely have heard of Njuškalo, the main and most known portal in Croatia.
This month, Njuškalo held a conference in Zagreb which the subjects approached were tourism, being the main industry in the country, combined with real estate investing. Together they have created a market with huge potential and definitely worthy of investing in.
During the conference, Robert Pakrovac, from Estre, one of the top banks in Croatia, said “ We’re an open book on which other sectors such as tourism, and ultimately the retirement of people in Croatia, lean on”
It is common to find real estate prices in overcrowded areas higher than in other locations. Due to the simple fact that there is more demand for these real estates. This is because many of these areas are popular destinations for both tourists and first time buyers who are less knowledgeable on Croatia and the real estate market.
However, recently more and more tourist and first time buyers are looking away from these popular areas and are in search for authenticity, privacy and unique experiences. These can be found in the lesser known regions of Croatia.
One of the best investments one could do is property investing, but it can also be very difficult decision requiring research on the area the property is located and on the property itself, apart from a lot of budgeting or financing for most people. For that reason, It can be really a decision for life if that is the case as if you decide to finance you will have a couple of year of mortgage awaiting for you.
How then to make the most of your money and depending on the area even an income?
To make an income it is important to decide on a property that is located in a very attractive area or country. This way you guarantee there will be away interest from tourists to stay in your house if you decide to rent it. That is the core of buying an investment property as well as in an area. Buying an investment property has to both ways, for the investor and for the guests.
To make this comparison simpler we selected a few countries and the prices for a house in comparison to Croatia. So, here is a brief list of properties in Europe. There are requirements you can stick to when looking for an investment property abroad, on the list below the requirements were either price or number of rooms.
If you plan to buy a property for sale in Croatia, you might be wondering about the numbers, how much capital you have to invest, what are going to be the costs and the maintenance and finally, your return of investment.
Surely those numbers are really important, but you should also consider a property for sale in Croatia as a home you could live in. During the building stage of your home, you look for high quality materials, best performance and the effect they will have on your pocket.
Croatia is know as a sunny and warm country, but what many people don’t know is that, during the winter the temperatures can go as low as -5 degrees on January, and as high as 38 degrees on the peak of summer in July.
The temperature variation is a very important factor that you have to consider when buying a property for sale in Croatia.
That is why it is fundamental to check if the property has good appliances but mostly importantly, good thermal insulation that is be able to maintain the heat and the cooling in the house. Like this, you will have to turn those appliances on less often, reducing the bills and increasing the life expectancy of those equipments.
Imagine you invest and become an owner of a luxury villa holidays in Croatia, which doesn’t have the Candy Brick Full Management Guarantee.
The villa is in an attractive location in the south of Istria. In fact, the region is attracting many tourists every year and offers plenty of reasons for people to come over and visit, such as short distance from Pula and Rovinj, the sea, astonishing nature, healthy outdoor lifestyle and active lifestyle and last but definitely not least, the gastronomy.
But between so many accommodation options, how do you make your villa attractive for tourists and make them chose your villa amongst the others?
The answer to this question is not only having high-quality holiday villa, but also providing excellent and efficient service for the guests and no stress for the owner of this property.
So, what options are left when it comes to managing your holiday home?
1.) Option 1: do-it-yourself:
Advertising your house online, this step can be simple, with research on where to advertise the property it is possible to know how and where to place your advertisement.
However, making the villa available online is a whole different step. It means you would have to organise and manage the booking requests, making sure there is no double booking or overlapping days and as a busy person, you would want to avoid that.
Nowadays people, in general, are extremely busy, the last thing anyone needs is one more chore to fit in their schedule, especially if this task is another full-time job.
The goal of a smart investor is to automatise the profit, keeping his time to do what is a priority and make the capital work for itself.
2.) Option II: giving this responsibility to an agency
This solution sounds great at first, but considering it more carefully, tourist agencies may not be able to represent and show the assets of your holiday villa in the correct way. Because of their extended list of properties to manage, they might not give your property the attention it requires and deserves.
For example, if your property is worth 1.5 mln euros, it is very likely it has plenty of refined rooms, a beautiful garden, a gym, a lot of gadgets, infinity pool and to top it up, a really polished design that tourists would be willing to pay more for.
Those are the selling points to rent your property out. But unfortunately, if the agency is managing hundreds of other properties, they might not be aware of and take all the features mentioned above for granted.
As a result, they can end up following the standard procedure of taking a couple of photographs of the most common rooms. Misrepresentation can lead to a shortage of bookings, as the villa won’t be appealing for the tourists amongst the other rental properties and the rental income can decrease if the features are not displayed and justified on the rental price.
Commissions can be quite high in those agencies, amounts around 30%-40% of your income for the service. This service usually does not include cleaning, welcoming guests, an available hotline for unexpected issues, gardening and etc. You would more than likely have to pay another company to look after those tasks.
The options above are not ideal for a busy investor that wishes to maximise their financial return and doesn’t have time to dedicate on property management, it also might be the case it is not in their interest to dedicate time for this task anyway
Candy Brick Full Management Service
The Candy Brick Full Management Guarantee is amongst the other guarantees offered to investors, protecting their interest and maximising their financial return.
With the Candy Brick, Full Management Guarantee you have trusted and professional staff taking care of your holiday villa and of your guests. The services the Full Management Guarantee includes are:
- Marketing your villa holidays
- Managing bookings
- Welcoming the guests
- Cleaning the villa and doing the laundry
- Gardening and pool cleaning
- Hosting the guests
- Also, a hotline always available for the guests to call any time to solve any problem
And what is even better is that the charge is only 20% of your income, which is much less compared to other agencies, and all the services in relation to rental management are included in the price.
As a result of this service, you get the best return on your investment without the need to worry about anything or having to deal with different companies.
A professional and reliable management service is key for your investment, so the staff maintaining the villa is local and well qualified. With this guarantee, all you have to do is sit back and enjoy your €30,000 rental income every year.