German newspaper: ‘Croatia as a country with the best ratio between price and profit’
The latest edition of the German newspaper ”Welt am Sonntag” brings an article on real estate prices along Croatia’s coastline. The paper mentions the Swiss entrepreneur Dennis Bandack who bought a small hotel on the island of Korcula for 2.7 million Euros and plans to invest in to nine more.
The author of the article emphasizes that Bandack has investment options in other Mediterranean destinations but, ”Bandack sees Croatia as a country with the best ratio between price and profit and he is not alone in this. Croatia attracts more and more hoteliers”. The main reason behind this trend is the extensive development of Croatian tourism. Purchasing a property along the Croatian coast is a good move for private investors as ‘in popular destinations in the western Mediterranean real estate prices have risen. On the other hand, it seems that Croatia provides favorable opportunities. According to analysts this winter brought a slight decrease of real estate prices’.
The article advises investors to be very careful when purchasing real estate and to double check ownership relations and the validity of the construction permit.
The author cites Matthew Montagu Pollock the publisher of the international information service for real estate rentals Global Property Guide, who says that the most expensive tourist properties are in Dalmatia. The main reason for such high prices is the long tourist tradition of the region and the filming of the HBO series Game of Thrones in Dubrovnik which attracts fans from all over the world. He also warns that once the series finishes filming in Dubrovnik the interest for Dubrovnik will decrease. ‘Probably the prices of weekend houses and apartments around Dubrovnik will decline very soon. But, in the long term, investors will probably benefit from real estate in the region’. M. M. Pollock’s figures show an average profit of 6.2 % on renting in Croatia and he also advises investors to open a company in Croatia in order to save on taxes.
Thomas Beyerle from the real estate company Catella states: ‘The pearl of the Adriatic will always attract tourists’.
Welt am Sonntag also touches upon Istria as a region in which real estate values are expected to rise due its vicinity to Germany and Austira and international stars such as Gwyneth Paltrow, Tom Cruise and Bernie Ecclestone who were thrilled with the Istrian peninsula.
If you have already decided to buy real estate, you are certainly interested in the purchase process. We will soon publish a guide for you in which we explain all the important steps in detail.