Recommendation of the German press: Buy properties on the Croatian coast

01.02.2017

The German newspaper "Welt am Sonntag" published a detailed article about the property prices on the Croatian coast in its 8th of January issue. An entrepreneur Dennis Bandack from Switzerland, who bought a small hotel on the island of Korcula for € 2,700,000 and is planning to buy additional nine hotels is mentioned as example. The author of the article points out that he could invest in any other destination in the Mediterranean but: "... Bandrack considers Croatia to be a country that offers the best balance between cost and profit, and he is not the only one. Croatia is attracting more and more hoteliers. " In the article, this trend is justified by the fact that the purchase of real estate on the Adriatic coast is a good move for private investors: "For the well-known destinations in the western Mediterranean, prices have risen (...) The analysts report, "This may be a slight decline in prices this winter." At the same time, investors are warned that they should keep their eyes open at the time of purchase, in respect to the property conditions and the validity of building permits.

According to DW, the author Matthew Montagu-Pollock, editor of the International Real Estate Information Service for Global Property Properity Guide, claims that the most expensive real estate in the tourism sector are in Dalmatia. This is justified by a long tradition of this region, as well as by the recording of the well-known series of Game of Thrones in Dubrovnik, which attracts many fans. But there is a warning that with the end of the series the interest for Dubrovnik will be reduced: "This can lead to the price of the apartments and apartments around Dubrovnik soon fall, but in the long run investors are likely to make profit from the real estates in this region "The Pearl of the Adriatic will always attract tourists," says Thomas Beyerle of Catella Real Estate Agency. "

Istria, on the other hand, is described as a region in which an increase in real estate values is to be expected, mainly due to the proximity to the south of Germany and Austria, as well as the presence of numerous international stars such as Gwyneth Paltrow, Tom Cruise and Bernie Ecclestone which were very enthusiastic about this peninsula.

According to the author, the figures given by Matthew Montagu-Pollock, which show that the rental of holiday homes and apartments in Croatia can be expected to generate an average profit of 6.2 percent. Finally, foreign investors interested in real estate rental are advised to set up a company in Croatia, because in this way some tax can be saved.

Source poslovni.hr , Welt am Sonntag