Dubrovnik Real Estate Market
The owner of Dream Estates Croatia, Mr Kieren Kelleher in an interview for the New York Times states that in the last year the property prices in Dubrovnik increased between 7 and 10 percent. This marks the 4th year of property price increases with an annual growth of 3-4 percent.
Mr Kelleher explains the positive trend through the lack of the supply which is supported by the high rental yields and caused by the increasing tourist demand. Dubrovnik Old Town ‘’easily’’ reaches 200 nights occupancy and results in average net yields, Kelleher estimates, of more than 5 percent.
Tourism in Dubrovnik is booming at an annual growth of 10 percent per year and many attribute this increase to numerous Dubrovnik features in the movie and TV series industry (Game of Thrones, Robin Hood, Star Wars). ‘’The majority of properties are used as investments’’ says Kelleher, but the real problem is availability “There just isn’t the land, and permits are cumbersome.”
While the boom in tourism has been the most significant factor in the growth of the local housing market, Dubrovnik is approaching something of a crossroads, Kelleher says. “The tourist strategy is completely confused at the moment,” he says. “Every day we have 15,000 [tourists] coming off a cruise ship, and they don’t mix well. The city needs to be going after the high-end tourism market, and focus on that.”
Source:Financial Times
