The thought of contacting a real estate agency and buying a new property may cause feelings of stress and chaos, but the real estate industry isn’t all doom and gloom. There’s also a lot of excitement! Understanding the principles of investing in real estate could help you make better investment decisions and have a brighter financial future. Today we want to talk about what it means to look at real estate through an investor’s lens, specifically real estate on the beautiful Croatian Coast.
Due to its crystal-clear turquoise waters, picturesque towns, and rich cultural heritage, Croatia is becoming a sought-after destination for real estate experts. If you want to turn into one, grab a cup of coffee and come with us on an exciting real estate journey. Here you can explore why financing a property on the Croatian Coast is a wise decision, both for your personal enjoyment and monetary gain!
What is real estate investment?
But first, let’s start the alphabet from the a. Even though real estate agencies are happy to help beginners make their first investment decisions, it doesn’t hurt to come prepared. So – what is real estate investment? It involves acquiring properties such as residential homes, apartments, commercial buildings, land, or even vacation rentals with the expectation of earning a return on the investment. On its own, real estate offers cash flow, tax breaks, equity building, competitive risk-adjusted returns, and a hedge against inflation. Real estate can also enhance a portfolio by lowering volatility through diversification.
For example, if you buy an apartment in Zadar today, there’s the potential to appreciate in value over time. Property prices tend to rise as demand for properties increases, particularly in desirable locations such as Split, Zadar or Dubrovnik. This can result in capital appreciation and provide a substantial return on investment. Rental income from investment properties can generate a steady cash flow, providing a reliable source of income. Positive cash flow occurs when rental income exceeds expenses such as mortgage payments, property maintenance, and management fees.
Different ways of investing in real estate property
Real estate investments can take various forms, depending on your budget, interest and time. Some of them include:
- Rental properties
Investors purchase properties, usually with help from the real estate agency, intending to rent them out to tenants. Rental income from tenants can provide a steady cash flow and potential profit over time. For this purpose, investors commonly use residential properties, such as apartments or single-family homes. Croatia is an excellent location for this type of real estate because of its vast tourism potential and low cost of living.
- Commercial properties
Compared with rental, commercial real estate can offer higher rental yields and long-term leases, which makes it an attractive option for investors. Investing in commercial properties means buying office buildings, retail spaces, industrial warehouses, or hotels.
- Flipping properties
If you want to test your flipping property skills, purchase undervalued property, renovate or improve it, and sell it quickly at a higher price. The time between the purchase and the sale often ranges from a couple months to a year. Successful property flipping requires a keen eye for potential value and an understanding of the local real estate market.
- Real estate development
Real estate development is one of the most complicated types of real estate investments and is not recommended for complete beginners. This type of real estate business involves acquiring land, obtaining necessary permits, and constructing buildings or developments. Real estate developers aim to create value by transforming raw land into profitable properties.
Booming real estate business
So why are then we, as a real estate agency, focused specifically on Croatian coast? Why should you consider investing in real estate in precisely this part of Mediterranean?
There are numerous reasons for that, but let’s start with the obvious.
Croatia is becoming a very popular touristic destination worldwide. Tourism develops, and with it, the demand for property rental, especially those more luxurious. However, property in Croatia is still more affordable than property in other Mediterranean countries. Seaside property, especially property near the sea and with the sea view gives great value for reasonable amount of money.
Furthermore, there is a lot of options for real estate investment on Croatian coast. Luxurious real estate, on exclusive location has a sustainable value and defy inflation. Luxury property is always a great investment which is why there is an increase in creation of such properties
Finally, Croatia has just entered Schengen zone and also transferred its currency to euro (as of 2023). All that makes the country more accessible, business and transactions simpler, even for foreigners.
Residential real estate and tourism potential
When it comes to tourism in Croatia – it is flourishing. Especially during the summer months and in the regions such as Istria, Dalmatia and Croatia’s capitol, Zagreb.
As a destination, Croatia has a potential for all year-round tourism. The numbers from this (2023) year’s pre-season show quite an increase in overnight stays compared to the year before. More and more people are discovering the benefits of coming to Croatia off-season.
Transition from seasonal to all year-round tourist destination is not better only for economy and environment but also for you as an investor in property on Croatian coast. Let us not forget all the sailors that like to visit our coast during spring or autumn months. Especially those that prefer to combine their stay on the boat with a stay in a fine property on the coast.
When it comes to summer season, Croatian coast is showing consistent appreciation over time. There is a great demand for property rental because of which the prices are constantly rising. All that helps make tourism market in Croatia stabile, as well as your investment.
Final advice from real estate agency
To conclude, Croatia is more and more interesting destination for real estate investment. There are several ways you can invest in a property – depending on your knowledge, possibilities, desires and long-term plans. Before any investment we advise you to conduct a thorough research and carefully evaluate the potential risks and rewards before making any investment decisions.
And of course, to seek professional advice. As a real estate agency and experts in the field of real estate, we would be happy to answer your questions. Real estate is our passion and we are devoted to be the best we can be in this field of business.
If you have already decided that you want to buy a property on Croatian coast as an investment, take a look at our offer and let us know if you find anything that suits your needs. For any additional questions and guidelines feel free to contact us, we are here for you!
Photos: Pixabay, Unsplash, Pexels, private archive.
