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.
Last year, 2017, the data showed the impressive number of 18.5 million tourists visited Croatia with 102 million overnight stays.
According to Eurostat (Statistical office of the European Union), in comparison to 2016, it was an increase of 13% of visitors to the country. And consequently, the number of arrivals also generated a substantial increase of overnights stays in 2017.
Croatia Tourism In 2018
Croatia is among the top EU countries by tourism results growth. In 2018, Croatia featured on the second place on list of top emerging destination, amongst Japan, Portugal, Cuba and Iceland. Not surprisingly, 2018 in comparison to 2019, Croatia received an amount of 19.7 million tourists. A new record.
Istria Is A Jewel
If you think of Croatia, you instantly might think of the popular spots such as Dubrovnik, Hvar, Split and Rovinj. Although those regions are espectacular and have plenty to offer, the uniqueness and authenticity of destinations that are still not very explored and overcrowded are attracting more and more the attention of tourists. The typical spots and regions attracted a lot of visits, but the winner of all was the region of Istria.
Investments In Tourism
Having more than a billion euros of investments put into tourism last year, this year the ministry of tourism expects the same amount of investments again to be put into the industry.
Dubrovnik is a stunning destination, without any doubts, it attracts on a typical day, the average amount of eight cruise ships. Having in mind, that each ship brings around 2500 tourists, overcrowding the streets of the charming UNESCO heritage, the incredible total of 20,000 visiting this town every day.
Dubrovnik is really having it
A population density taken in 200, shows that the number of inhabitants in Dubrovnik is 43,770 people in a total area of 143,35 km². However, considering that the tourists concentrate in the urban area, which in Dubrovnik is of only 21,35 km², that is nearly 1000 tourists per km², plus the locals which adds more to this number, everyday on an average day.
There are testimonials of locals that saw around 12-14 ships arriving o Dubrovnik in a day. Bringing 30,000 tourists in a day, increasing the number of people per km² by 50%.
The trend is changing
According to Virtuoso, which releases a luxury european tour report every year, shows that high spending tourists are not attracted and don’t enjoy overcrowded areas. In other words, overcrowdedness kills, most of the times, the landscape and experience that a person will have during their holiday.
For those who are not familiar with Virtuoso, it is nothing more nothing less than a huge network of the best luxury travel agencies, with more than 17,500 advisors worldwide.
Virtuoso releases a luxury european tour report every year, in which displays what the tourists seek when looking for a perfect holiday destination. The report for this year, shows that people are looking for pristine, unique and less-known destinations to visit.
In 2018, Croatia featured on the second place on list of top emerging destination, amongst Japan, Portugal, Cuba and Iceland.
If you think of Croatia, you instantly might think of the popular spots such as Dubrovnik, Hvar, Split and Rovinj. Although those regions are spectacular and have plenty to offer, the uniqueness and authenticity of destinations that are still not very explored and overcrowded are attracting the attention of tourists.
People coming from all parts of the world get impressed by the stunning and nearly untouched beauty of Croatia. This attributes surely bring people looking for a perfect holiday destination, in which case Croatia fulfills this requirement, but also impresses and attracts entrepreneurs and investments. Recently, around the 15th of October, The Croatian Employer’s Association organised a couple of meeting with the US delegation.
The delegation included outstanding guests
This delegation brought along Jeffory Blackard, who is the founder and Chief Executive Officer of Blackard Global, Inc. A company that is the first firm in the world to advocate for the creation of modern-day villages. Before developing moder-day villages, Blackard Global, Inc developed over two billion dollars worth of real estate of varying kinds.
Jeffory Blackard is responsible for the completion of over 30 Master Planned Communities and 15,000 single family home sites. With almost 40 years experience, during various developments, he had his first experience with the country of Croatia.
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.
If you are planning on investing in Croatia, in an specific sector, for example real estate, it is important to know beforehand, what is the investment scene of the country you are aiming for.
It is not news that the main industry and sector that receives more investments currently in Croatia is tourism, showing amazing numbers that constantly increase yearly. For that reason, plenty of investments are moving towards Croatia’s tourism. However, the country is aware of other sectors that are growing interest for large amounts of investments, for example:
DAMAC was the first real estate company from the Middle East to list on the London Stock Exchange and they raised 379 million US dollar in the form of an IPO.
Valamar, a large investment group that operates in Croatia, plans to invest 2 more billion kunas by 2020 in real estate in Croatia, being 95 mln only in 2018.
Industrial and Commercial Bank of China has set up a 11 billion dollars fund to invest in Central and Eastern Europe. If you fit this money in a room it would probably reach the ceiling.
Currently the fund invests in projects in Poland, however the fund has already contacted the Croatian government with a request of presenting them some companies to invest in or projects.
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.
When arriving to Croatia, you might wonder where to go for a classy and refined experience. Istria has many of those places but one worth the visit is Opatija.
You won’t regret sightseeing this elegant city of Rijeka, 1 hour and a half driving from your Candy Brick luscious investment property, is a must go day trip to take your family or to relax on your own. The great thing about this city is that it can be delightful during the summer but also during the winter in Croatia.
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.