Investing in Luxury Real Estate in Croatia
Find out is investing in luxury real estate in Croatia worth it!
The pandemic has definitely changed things, worldwide. In every industry, every business, every investment game. So, what is different in the field of investing in luxury real estate, is it still worth it?
The London Post ranked Croatia number one on the list of the best countries to invest in 2020.
Saying that its “stable economy, coupled with her entrepreneurial and innovative population, has made foreign investors very optimistic about her progressive business environment” put Croatia even before UK and Italy.
Croatia is a star on the rise when it comes to investment, but what should you invest in? Real estate is always a smart and safe choice so let’s see if investing in luxury real estate in Croatia is a good idea!
What is luxury real estate?
First things first – we need to define what luxury real estate is all about.
According to Investopedia, it is a real estate that must be “unique, exclusive and perceived as superior.” Also, it must be on a good location, close to the luxury activities such as shopping, dining and the arts. It is important that the property is in close proximity to other luxury homes or that it has a lake, mountain or sea view.
People who buy luxury homes want to be impressed by the beauty, design, custom architecture. They want, as Investopedia writes, top amenities – a chef’s kitchen, luxury pool, outdoor living space, home automation.
It is very important to think about “the aspects of the property that can’t be changed,” such as the weather or geographical position.
The prices of luxury real estate depend on the market. If the property you want to buy is in the country where prices are generally low, the price of the luxury property you set your eyes to will also be lower.
What are the ways to invest in luxury real estate?
Investopedia suggests several ways of investing in luxury real estate.
You can remodel an existing luxury property, invest internationally or buy a luxury condo, which is always a good idea because of the amenities and transportation options nearby. Also, you can build a custom home that “offers the highest profit margins but has a longer time frame.” There is always a high – end vacation rental property, that you can rent, sell and/or enjoy yourself.
Generally speaking, real estate is perceived as a safer investment than stocks, gold or currency.
As Sherry L. Owen from Owen & Co Real Estate says, with investing in luxury real estate “you get the best and most desirable features of home living.” And really, one of the things that define luxury the most is precisely its desirability. Secondly, luxury homes promise the best return in the long term.Thirdly, as mentioned above, there are many options on the Croatian property market. You can choose the way you want to invest in luxury property.
According to the Investopedia, in 2017. the market for second homes has increased. With the epidemic of Covid-19, and a lot of people making their second home their primary one, the growth of that market will only continue.
“Demand for exclusive residential properties will continue well into 2021. even as the vaccine for the coronavirus is widely available to large segments of the United States and global population,” claims Mickey Alam Khan, president of Luxury Portfolio International for Forbes Magazine.
Continuation of working from home will only underline that decision. People will look for homes that have a lot of amenities and space, especially the outdoor space.
And if you can work remotely, where better to look for home than in a beautiful and naturally diverse country such as Croatia?
So, is investing in luxury real estate in Croatia worth it?
Croatia has land, mountains, rivers, lakes and valleys, crystal clear Adriatic Sea and clean air. The Dalmatian coast, for example, makes a perfect choice for buying a second home.
We already said that the London Post proclaimed Croatia the best country to invest in and Investopedia also mentions Croatia as “a great rising star in buying a second home.”
In Global Property , it is mentioned that about 70, 000 foreigners own a property on the Adriatic Coast. It is not just because of the beauty; the price has something to do with it as well.
Even though “Croatian house prices continue to rise, mainly fueled by strong demand”, the prices are still not as high as in some other locations with similar features like Italy or Spain.
Finally, it is safe to say that Croatia, with more than 1200 islands, a pristine sea, with rich historical and cultural heritage and plenty natural beauty is a fair competitor to these countries. Especially if we consider a wide variety of local and seasonal food that it also has to offer. Staying healthy was never more important and being in the fresh air, eating quality, organic food helps boost our immunity.
Croatia is a country on the rise, when it comes to real estate, even in the “new normal” conditions caused by the pandemic
In conclusion, we can agree on the following.
Even though the pandemic “changed the game” on the global level, investing in luxury real estate will continue to be a good idea. The best type of investment ,according to the Forbes, will be spacious second home properties, with the emphasis on those properties that have a lot of outdoor space. As a country situated on the Adriatic Sea and the mountains, Croatia has a lot to offer.
But it is not just its geographical position and the view that takes your breath away that make you want to live there. People are investing, they are building high quality, superiorly designed properties that can satisfy even the pickiest buyers.
The prices here are going up but they are not nearly as high as the prices of real estate in some other countries.
So, to answer the question from the title – is investing in luxury real estate in Croatia worth it? Yes, it is. The great thing about buying a second home is that you can make it your primary now, if needed, and later you could rent it and earn income or sell it, if it won’t interest you anymore.
Whatever you choose, buying a property in Croatia will be worth your while.
Looking for a high – end second home, in close vicinity to the sea and one of the most beautiful sunsets in the world? Check out our high – end, superior design luxury villas on the Adriatic Coast!