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.
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.
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.
Why to struggle? Pay by phone parking is now available making everyone’s life easier. Most tourists come to Croatia by car not plane. When arriving to Croatia, they want to enjoy their holidays by seeing the most beautiful sceneries and trying the most delicious Croatian food, and this applies to everyone.
If you are not a local or during the high season, it can be quite challenging to find an available and free parking spot. To be completely free to enjoy your time in Croatia you might want to go through a small process before relaxing completely.
When you think of fishing you might have the image of old fishermen boats that go to the deep sea to catch tons of fish to make a living. There is nothing wrong about that by the way, thanks to the hard work of these men we are able to eat delicious, refined and fresh seafood, such as Tuna fish, Swordfish, Greater amberjack, Little tunny, Dusky grouper, Mahi mahi, Albacore, Blue shark, Common dentex, Red porgy and Atlantic bonito,
However, fishing can be an expensive hobby, involving yachts, different types of fishing gear, a fishing license, and the costs you have also depends on the level you are at: beginner fishing or advanced
The Boat…or Yacht
The adriatic sea is a rich source for the sports lovers that are looking for some big catches. But to enjoy the sport and fish with style you will need some preparation and capital. The prices for a fishing yacht can go from: €850,000 to €30,628,000
To build the best villas in Croatia you need to use the best materials available on the market. At Candy Brick, we are very aware of this and in this article we will explain and show you the quality required for the construction of a Candy Brick villa.
First, to build the best villas in Croatia you need experts that know how to use the materials given in the right way. The project manager has a really important role, responsible for selecting the right suppliers that will provide high quality materials for the construction.
At Candy Brick, we have Dušan Ivković an organised and committed project manager with 16 year experience in projecting and building houses. Being a local Istrian, he has a wide network and knows who are the best suppliers for each material.
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Second, you need workers that will handle the high quality materials with care, giving them the right treatment and using the correct techniques when installing them.
Zdravko Đokić and his team have built over 300 houses and understand every step is important to achieve an excellent result.
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Know where the materials come from
In the Candy Brick villas, all the materials have been attested, meaning that for every material used on the construction there is clear evidence of its origin. This is important as it is often a Guarantee of the materials durability and performance. You can see if the materials follow this standard by checking the label that should comply with the Construction Products Regulation (CPR).
“The Construction Products Regulation (CPR) lays down harmonised rules for the marketing of construction products in the EU. The Regulation provides a common technical language to assess the performance of construction products. It ensures that reliable information is available to professionals, public authorities, and consumers, so they can compare the performance of products from different manufacturers in different countries.”
What materials are necessary to build the best villas in Croatia?
Cement is essential as it form two important construction materials. If mixed with water, it forms mortar and if mixed with sand, gravel, and water it makes concrete. These combined with the bricks make the fundamentals of your building. Here’s a video of Zdravko Đokić laying the concrete of Candy Brick villa 3 in Matelici.
Concrete mixtures do not set below minus seven degrees, and the lower the temperature the longer it takes for the concrete to set. In addition, concrete has to be wetted in order for it to achieve its requirements and conditions to settle and harden properly.
For the structure you will need resistant and solid bricks. Hollow bricks or blocks have greater benefits than solid bricks. The advantages of using these types of bricks are:
Thermal Insulation – Hollow bricks have strong insulation properties reducing the need to use heating and cooling devices.
Strength – They can support heavy wall hangings, such as shelves, furniture, souvenirs. They make it easier to pass the electrical and plumbing fixtures through compared to solid bricks.
Low maintenance – Hollow bricks have low maintenance costs due to little or no efflorescence on their surfaces.
Less cost – As they are larger in size they require less mortar joints filling.
Steel reinforces the building structure. Concrete is a composite material that works well in compression, but not in tension. The reinforcing steel bars form a net and a frame for the concrete to be poured in. Together they create reinforced concrete, where the concrete is the matrix while steel bars or wires provide reinforcement.
In Candy Brick villas, there are three types of insulation:
Hydro Insulation – This stops the humidity and steam penetrating the surface and letting the humidity and vapour out at the same time, allowing the surfaces to breathe and dry out.
Thermal Insulation – External thermal insulation allows heating and cooling systems to have a better performance and lower energy consumption. If the thermal insulation is external, when cold the indoor heating also heats the bricks on the walls, keeping the warmth indoors for longer.
Noise Insulation – Stirodur is a special kind of plastic and the stirodur slabs have no connection to the walls. This helps avoid the propagation of noise through the walls helping to make the villas silent.
The progress of construction always requires the introduction of new materials and techniques. We are always on the lookout to make sure that all the materials used during the start till the end of the project are reliable, stable and high quality. This is how we help ensure that Candy Brick villas are the best villas in Croatia.
Planning and building an investment property in Croatia, or any other kind of project, requires good management and processes. At Candy Brick we researched and planned the project meticulously, developed solid processes, and selected very well our team. In this article we are going to present these key elements to you.
Planning and Execution
Think of a building, there are foundations and structures underneath the superficial layers of paint. Even if you can’t see them, for example the bricks, they are extremely important during the construction and ensuring the building remains stable.
Within a project team, it works the same way. Even though you might not be able to see or hear some team members, they are still fundamental to the successful project execution. It is therefore important that all team members are competent and synchronised.
What is the status of the current industry and market? This is an aspect you should definitely consider. You don’t want to make the mistake of starting in an industry that is already over-saturated. And if you do, then make sure you innovate in this industry.
We started our investment research based on the growth of real estate market in Croatia. Here we noticed increasing rents mixed with affordable property prices, and low taxes and costs compared to other countries. Which made the idea of purchasing an existent investment property in Croatia and reselling it, an appealing investment.
Know the Place
Do extensive research of the area your project is based, and adapt your research to the project needs. If your project is an investment property in Croatia, then location is key for an excellent return on investment.
If the region has abundant natural resources, take advantage of it, innovate and implement it in your project. Croatia’s 300 sunny days a year gave us the opportunity to innovate our villas by putting solar panels on them. This makes them self sufficient and increases the value of your investment property in Croatia.
Deni Tomisic, our geodesist at Candy Brick, gave us plenty of local advice that was crucial at the early stage of the project. His expertise and knowledge was able to point out fundamental aspects missing from some sites. Such as, no electricity or water and no possibility for connecting them, no usage permits, chemicals in the ground, low quality materials, and even a pending mortgage on a house.
After more in depth research on the local searching tool, http://www.katastar.hr/, more legal problems were found in relation to the sites. Purchasing terrains with issues can be a nightmare in many ways, making you spend more to fix them. If this step is missed then the whole project can fall apart.
The selection starts with defining characteristics that every member of the team must have. It is important all team members share the same fundamental characteristics in order for the group to be synchronised.
When your in a foreign country it can be hard at first to identify your desired characteristics in people. But a local references and advice can help you hugely.
At Candy Brick we choose people who are honest, loyal, driven to make the project go forward, and have a will to evolve.
From the Geodesist, responsible for selecting good and suitable terrain, and taking the right measurements to be used for later stages of the project.
To the architect that has to understand the intention of the client’s project, translating the needs into a drawing. And then has to clearly specify the materials to be used, the precise measurements, and the instructions about their drawing.
To the engineering supervisor, responsible for checking all the stages of the construction, disapproving any step that is not correct, and having the initiative to correct any mistakes.
And the Project manager responsible for controlling the project quality, budget and timing. He does this by checking everyday the construction progress, negotiating with suppliers in order to get better materials for better prices, and working on behalf of the company and not himself.
The choice of a good team of builders is also essential. Many mistakes can be done when constructing if the builders are not experienced and competent. And the fixing of these mistakes can be costly and can slow down the project if the wrong person is chosen. In Croatia there is a scarcity of workers and it can be quite difficult to find honest and qualified workers without the help of local advice.
Importantly, None of this can happen if your not legally allowed to. It is important therefore to have full legal understanding on your team, and a person who is familiar with law, contracts, rules. And not just for one country, but internationally, as laws can change from country to country.
Finally, we working internationally, communication becomes vital. It is crucial to have perfect translators in the team to avoid any error through miscommunication.
Talking about communication, marketing is extremely important for any company and team. Having a really good team and product is essential, but without really good marketing people will never get to hear about them or their achievements.
The sales person also has to understand fully the product and the companies values, and has to be able to transfer those values to the client. It is fundamental having a person who creates a connection with the client.
The administration is key to keep the internal engines of the company running smoothly, initiative and communication skills are necessary for a good administrator.
The accountant’s role may consist of primarily financial data collection, entry and report generation. The accounting structure of a company is an essential component to business operations. It is therefore essential to have an accountant that is honest and does not misrepresent the firm.
The External Team
Beyond your core team, there is also the external team to consider and the same selection process should apply for them. These are your partners and collaborators. Let’s compare them to other external factors in a construction project, such as the weather.
You have everything needed to start your construction project, like materials and constructors, but then it rains and you can’t start building. This is external factor interference.
With your partners and collaborators, it is the same and they can equally influence the progress of your project. The only difference is you can actually choose your partners and collaborators. You can’t choose the weather.
A legal partnership is a contractual relationship involving close cooperation between parties having specified and joint rights and responsibilities. Each party has an equal share of the risk as well as the reward.
A collaboration involves cooperation, parties are not necessarily bound by a contract. This is a relationship, but it is usually less formal than a legal partnership. A good collaboration can only exist when several people pool their common interests, assets and professional skills for a joint project. Importantly, organisations don’t collaborate – people collaborate.
It is better to chose partners and collaborators that are aligned with the project and will respect your goals.
For building investment property in Croatia, we chose partners and collaborators that are available, precise and responsive.
Good planning is fundamental to strategise and reach your goal
We hope that the tips given on this article help your planning and researching process, either if you are starting or already have an on going project.
It is attractive to invest on real estate in Croatia at the moment, and tourists come to enjoy the wonders of the country.
Real estate in Croatia is currently on the spotlight.
- The country offers beauties, unspoiled natural paradises, activities, and rich heritage.
- Private, government, and European Commission investments are taking place in Croatia, improving infrastructure, services and accessibility.
The combination of both factors attracted Candy Bricks attention to develop luscious investment properties in Croatia.
The location of the villas are crucial for stress free financial return.
For that reason, Candy Brick is currently building two projects in Marcana, central Istria area.
The Municipality of Marcana has an area of 131 km2. According to the Ministry of the Interior at the end of 2014, in its area of residence there are 4,566 citizens.
The area has an indented coast with a total of 36 km of coastline starting from the Raska bay in the north to the Budava bay in the south.
With the data collected by the Istria Tourist Board and analysis made by Candy Brick, it is possible to note and compare the monthly increase of tourists and show you why Marcana is an advantageous location for your investment property.
Last month, June 2018, the region of Marcana shows an increase of arrivals of 43% in comparison to June 2017, generating 4000 more overnight stays.
Out of 32 regions, Marcana was where the number of tourists increased the most in June 2018 in the whole Istria, meaning that tourists prefer staying in further regions than overcrowded central areas and making it the perfect region for investing in real estate in Croatia.
That is due to the profile of high spending tourists, who prefer distant and private locations to relax alone or with their family and enjoy the things Croatia has to offer.
Another interesting data from Istria Tourist Board is a half yearly analyses of arrivals to Istria, divided by regions, in which Marcana had an increase of 100% arrivals and around 50% increase of overnight stays.
Germany is still the responsible for the greatest amount of tourists coming to Croatia, a total 140 thousand arrivals generating the incredible number of 1.1 million overnight stays.
You can also compare the statistics of May 2018 on the link below
Candy Brick is progressing with the construction of its luscious investment properties in Croatia, and soon will be ready to receive the guests at your villa in Marcana.