There are many different ways of investing or saving for the future, and buying a property for rental in Croatia has traditionally been a synonym for a long-term profitable investment. This is also noticed today by foreigners who increasingly buy real estate as an investment in Croatia.

In Croatia, owning a real estate is extremely popular. Except for the fact that Croatians like to invest excess funds in real estate, they also very often inherit a property. As many as 89.9% of Croatians own properties, which makes them one of the European record holders.

And how are all these properties used? In addition to housing, in coastal cities and increasingly in the interior it is especially popular to rent a property for tourist purposes. As tourism oriented country, Croatia is one of the countries with the highest GDP from tourism in Europe, and private homes and apartments make up for a large share of the total accommodation capacity of Croatia. Knowing this fact, buying a property for tourism purpose seems like a good idea. Is that really the case and are there any risks?

Important factors in buying real estate for rent

When buying a rental property, several factors should be taken into account that greatly affect whether you will ensure adequate income.

Location, location, location! A familiar phrase that indicates the importance of location when buying a property. A good micro-location of the property raises its value, and thus the rental price. Apartments and houses with stunning sea views, just a few minutes from the beach are more expensive than properties that are further away from the sea.

It is a great feeling to have your own house on the sea where you can enjoy your vacation, and it can also bring you profit. With this type of real estate, its value grows mostly over the years because the number of good locations is declining more and more. It is therefore a good choice for those who are thinking long term, especially because the investment in such a location, as a rule, is much higher.

However, the proximity of the sea and the beach is not always a decisive factor. The property should be considered as an independent whole. Sometimes it happens that a great option is something that does not seem like a good location at first, but the property itself is extremely attractive and self-sufficient. A property that has its own story will attract specific customer segments regardless of its location. Such a property can bring excellent income and even better return on investment than a perfect real estate property at a prime location. So, this option is for those who are willing to invest a little less money, but more imagination.

Good preparation is half the work

When buying a real estate for rent in Croatia, in addition to the income, it is important to consider the costs. The property bears certain costs, such as utilities, insurance, facility and garden maintenance, possibly swimming pool. When renting, you should also take into account the cost of cleaning, the cost of commissions to travel agencies and booking portals, etc. Depending on your own engagement, the costs can represent 10-35% of the amount of income. So, the profit is proportionate to the owner's engagement.

The fact is that nowadays those who do not like to keep money in the bank can choose among different types of investments. Some of them require specific knowledge or a slightly greater personal commitment. On the other hand, most people traditionally tend to invest in real estate as something we are all more or less familiar with. For most people, buying a real estate is still less stressful than, for example, investing in stocks, cryptocurrencies or funds.

Is it worth it?

Is it worth buying a rental property in Croatia? We will let you to answer that question yourself. Why? Because it depends on your expectations and desires.

If you want to use the property yourself and stay in it for a part of the year, and rent it for the rest of the year, the money you earn by renting will certainly cover part of the costs, and it is possible that you will make money.

If, on the other hand, if you are buying an investment property and expect a certain return on investment, the formula is somewhat more complex. The possible income, expenses and time you will spend on it should be taken into account.

On this link you can see real estate that have a well-established business as well as those which would be a great choice for buy-to-let purchase.

We are here to help you find answers to your questions and give you advice, so do not hesitate to contact us at:

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