The luxury real estate market is experiencing a real boom in Croatia as one of the emerging sectors during the ongoing global pandemics. Even after we win the fight against Covid, the real estate market will probably not look the same. For over a year now, circumstances have been unfavorable for mass tourism. Consequently, the demand for carefully selected dream villas has increased and set new travel trends and investment opportunities.
Josip Krnić Photography
High-end photos of villas and surroundings – a necessity or a luxury?
Looking at the current situation from a photographic and marketing point of view, nowadays, more than ever before, the overall quality presentation of luxury real estate on websites and social media comes to the fore. When people generally travel far less, more and more buyers and travelers want to find out everything they need to know about the property in one place – whether they are looking to purchase or rent. Therefore, investing in high-end premium photography today is becoming a necessity, not a luxury, as many property owners are prone to think.
Photographs of the real estate are often the first and fundamental way for the client to get acquainted with your offer. Research has shown that clients spend more than 60% of their time reviewing photos of the property they consider interesting and only subsequently studying the accompanying content.
Josip Krnić Photography
Furthermore, the fact that objects must be accompanied by equally high-quality landscape photographs of cities, sights, and natural beauties of the region where the property is located is often understated. When purchasing photographic licenses for the use of landscape photographs, it is important to request that potential copyright elements be removed from the photograph.
Josip Krnić Photography
Aerial, i.e., drone photography, is a great way to show your object and landscape from a different and unusual perspective. In this comprehensive way, you can be sure that your property will be presented to the clients in a modern way which represents a standard in the world of luxury real estate.
Josip Krnić Photography
Professional real estate photos – advantages and current trends
One cannot stress enough the importance of original and exclusive photographs whereby the techniques of photo post-processing and basic marketing knowledge come to the fore and easily set you apart from the competition.
Some of the important benefits of high-end photography, to name just a few, include the following: leaving an impression of professionalism and savoir-faire on prospective clients and depicting the property in a luxurious light, luxury real-estate agencies can market your property more successfully and reach out to clients more efficiently, you are favored by algorithms of social networks and web browsers, boosting your visibility and allowing you to sell the property significantly faster and within higher price range.
Josip Krnić Photography
Photographing real estate only in classic photographic landscape formats is a thing of the past, and it should be adapted to the requirements of modern platforms like Instagram that favor the vertical format of photography.
You cannot afford yourself the luxury of having subpar quality photos of your luxury real estate, least of all in today’s world, which is changing at an incredible pace towards increasing digitalization.
Josip Krnić Photography
@dreamer4787
The year behind us was marked by a global pandemic of unprecedented proportions and consequently with an almost complete halt in all economic activities that ceased abruptly due to restrictive measures, which led to the total collapse of nearly all sectors.
And it is precisely in 2020, an unprecedented year in many ways, that the real estate market experts faced significant challenges. The key to success was in their rapid response and adapting to market conditions and trends that were changing at a relentless pace.
Despite negative statistics and economic indicators that were by no means promising, Sotheby’s International Realty is very proud to announce that our brokers and sales representatives have achieved a record sales result of $150 billion at the global level, marking a continued increase in sales growth year over year.
“Thanks to innovations we pioneered nearly a decade ago, our affiliated companies and agents made the impossible possible. Their adaptability to serve clients safely further extended our position as a leader in luxury real estate,” said Philip White, president and CEO of Sotheby’s International Realty.
Modern Technologies and Trends in Property Viewings
As the luxury real estate sector leader, Sotheby’s International Realty guarantees global marketing reach and high advertising standards for both sellers and end buyers looking for their new home or dream vacation villa and constantly offers innovative tools for its loyal customers. At the peak of the pandemic, clients were unable to travel and view real estate in person, and agents were faced with the daunting task of finding new solutions that could replace traditional ways of real estate viewings.
Facing unenviable circumstances, sales representatives invested much energy to fully exploit all available brand tools to present real estate to prospective buyers in the best possible way through virtual platforms. New technologies and innovative marketing solutions that Sotheby’s International Realty is continuously improving have certainly contributed to these record results. The numbers are supported by more than 43 million views on the brand’s official YouTube channel and more than 6,000 properties on the global website that have video materials or provide the possibility of a virtual tour.
Global Trends in the Local Market
As the leading luxury real estate agency in Croatia and a representative of the brand synonymous with a professional approach and commitment to each client, our team of professionals is constantly working to improve their skills and replicate global trends in the Croatian market. Therefore, it comes as no surprise that clients remained loyal to our brand even in extraordinary circumstances, keeping their expectations high as always. Our real estate experts readily accepted the challenge and provided unconditional support to clients by organizing their arrival in Croatia despite restrictive measures and carrying out virtual tours of properties.
Despite the unfavorable global situation and strict measures that were eagerly implemented in almost all countries, our Croatian office followed the global trend of Sotheby’s International Realty and achieved a record sales result. Comparing global trends with the local market situation, we can conclude that clients worldwide increasingly value privacy and isolation and prefer secluded real estate surrounded by large plots, which allows them to enjoy a peaceful stay far away from the hustle and bustle of the city.
Regardless of skeptical forecasts, the corona crisis leads us again to the conclusion that foreign investors gladly invest in exclusive real estate in unique locations. Given the limited number of properties in premium locations, our offer of such properties very often does not satisfy the clients’ demands. One can easily deduce that this type of real estate arguably does not undergo large oscillations in the asking price, regardless of the current market challenges.
Global Expansion and Strategic Brand Growth
In 2020 Sotheby’s International Realty continues its constant growth in the global market by opening more than 50 new offices worldwide, further enhancing the brand’s global network currently present in more than 75 countries in nearly 1,000 offices with approximately 24,000 sales associates. In addition to opening new offices in existing markets, the brand has expanded to key international markets, establishing offices in seven new territories.
“I am very proud of our brand and the whole team in Croatia. It is a great success that we followed the world trends in the local market and achieved a record sales result in these difficult times”, concluded Marko Pažanin, managing director of Croatia Sotheby’s International Realty and a global partner.
The changes caused by the current pandemic of the new coronavirus have not only affected our daily lives. The effects have been felt by numerous markets and economies, including the real estate market in Croatia and the world.
Croatia Sotheby’s International Realty Director Marko Pažanin takes a look at the current state of the luxury real estate market in Croatia, as well as expectations of real estate sales in the near future.
These days I have had some really interesting conversations with my colleagues about selling luxury villas by the sea. For a large number of investors, the main motive for the construction of such facilities was the tourist rental, and only then the sale.
The popularity of the Croatian coast, both among foreign and domestic guests, has enabled a real boom in tourism in Croatia, which records year after year records in the number of visitors, and thus the amount of revenue generated. The rise in average prices of tourist rent on the Adriatic and the development of cultural, entertainment and sports offerings have brought excellent income to owners of luxury properties during the season and even beyond!
We could also feel the impact of tourist growth on the purchase and sale of luxury real estate.
So far, we have frequently encountered a price formed by sellers that could not be accepted by potential buyers as being realistic. Therefore, the sale of these properties often failed to take place. The owners, more than satisfied with the income they earned through the tourist lease, were not ready to lower the sale price of their villas and apartments.
Luxury real estate in unique locations is a safe investment for foreign investors
This year, we expect much lower tourist rental revenue in the season than in previous years, which will have an effect on adjusting the sales prices set by property owners.
I may be wrong and that may not be the case, but it is certainly the most likely scenario given the logic of business, supply, and demand.
In this uncertain situation, there is another scenario involving the most important rule when investing in real estate, which is “Location, location, location!”. This scenario benefits all owners of properties in unique and exclusive locations.
If you have high-end real estate in a unique location it will not be compromised in a market context.
The drop in prices will be felt the least in the top locations, of course, if the starting price was based on the estimation of a specialist who had the experience to sell this type of real estate.
Foreign buyers are still interested in ultra-luxury real estate
In contact with the clients for whom I seek so-called “trophy real estate”, almost everyone has confirmed their interest in them, even in these conditions. This is a great indicator that investments in luxury real estate will not stop, and that exceptional real estate will always have its buyers, which will not hinder global change.
World-class luxury exists in Croatia, but in limited quantities. Personally, I can hardly wait to have real estate on offer again, such as the famous Villa Castello, as buyers of such properties are ready to make a purchase regardless of the new situation, in which unfortunately the fall in prices for most properties is unavoidable.