What has the year 2018 brought to the luxury real estate market?

The sun, the sea, beautiful weather and mediterranean lifestyle, combined with great properties on great locations are the recepie for a successful bussines year when it comes to Croatia’s luxury real estate market. The numbers have gone up and are…

The sun, the sea, beautiful weather and mediterranean lifestyle, combined with great properties on great locations are the recepie for a successful bussines year when it comes to Croatia’s luxury real estate market. The numbers have gone up and are expected to continue growing throughout the following year.

 

Retrospective of the luxury real estate market in 2018

 

2018 has generally been kind to croatia’s luxury real estate market, since demands for this sort of properties were up by 25 percent compared to 2017. At the same time, the prices of luxury real estate in Croatia rose by 10-15 percent. The averege price for a villa ranges between 5000 to 6000 euros for a square meter.

Clients opting for these properties are mostly foreigners, coming primarly from Germany, Austria, the Czech Republic, Slovakia, England and Scandinavian countries. Also, some inquiries came from Russia and China. The averege age of property buyers varies between 45 and 60. Russians and Chinese want the property they buy to match the highest standards, while Europeans are more open to redecorating and reconstructing the property themselves.

Clients have their preferences when it comes to location, choosing mostly properties at the coastline between Primosten and Trogir (especially in Split) and around the town of Dubrovnik. Besides to their beauty, these areas owe their popularity to the proximity of airports, motorways and marinas. When it comes to islands, the most popular ones in 2018 were Brac and Hvar.

Despite great results, the market has its issues. The most prominent ones are the somewhat closed banks towards supporting investors and the lack of offer suited for clients aiming at luxury properties.

 

Predictions for the luxury real estate market in 2019

 

Still, positive market trends are expected to continue in 2019, with an expected price growth of up to 10 percent, followed by an even greater growth in demand for luxury real estate in Croatia. The start of construction of several tourist resorts with 5 star hotels is expected in 2019, along with entrance of some world class hotel brands to the croatian market, such as 4seasons and Marriott.