COVID-19 AND SALE OF REAL ESTATE ON THE ADRIATIC
Is there interest in buying real estate in Croatia? What are the prices of real estate on the sea, in which parts of the Adriatic coast are real estate most sought after, and what is the general situation on the real estate market in Croatia?
The coronavirus pandemic has completely changed our private and business life. While we are slowly getting used to living with masks, working from home has become a normal phenomenon for us, the world economy is facing new challenges, including the sale of real estate in Croatia. While some wonder if they should sell the property, others wonder if it is the right time to buy real estate. The current trends in the real estate market at sea reviewed the manager of the agency Euro Immobilien – Mateja Bogdanić.
DO PEOPLE BUY REAL ESTATE IN CROATIA?
- Regardless of the uncertainty, the interest in buying real estate existed in 2020. People called, sent inquiries, communicated daily even though they were several hundred kilometers away from Croatia. - says Mateja Bogdanić and adds that she felt a certain restraint and caution in communication with clients, but also a great desire to afford something beautiful, to achieve long-desired wishes, realize some of their goals - including buying a property on the sea.
- With the easing of measures and the arrival of summer, we have witnessed the exceptional interest of clients, both domestic and foreign. Despite the uncertainty, the people were determined to buy real estate. Even clients with whom we have been in contact for a long time and who have been looking for a property for a long time have somehow decided that now is the time to buy. - adds Mateja.
People seem to have realized that some things are passing and that one should enjoy the present moment rather than calculating and planning too much. Keeping money in the bank is no longer so important as in this global change and the “new normal” we have been encouraged to set priorities and change attitudes. - The greatest interest was for houses, mostly detached and those that offer privacy and peace, as well as building land near the sea. As for the apartments, they were bought in good locations - as a safe investment and as your luxury - enjoying what money can afford you in these uncertain times - she notes. Through Mateja's analysis, we concluded that the new situation has further inspired a large number of people to invest, i.e. buy real estate, and to enjoy life more.
PROPERTY FOR RENT IS A MATTER OF PAST?
- The difference compared to some previous years was noticed in the fact that there was slightly less interest in real estate for rent - in terms of buying with the intention of tourist rental. This is not surprising because the announcements and predictions about the damage that tourism will experience with this pandemic were quite negative. This demotivated a certain group of buyers who had a motive to buy for renting. But they “returned” again in the fall when it became clear that tourist villa rentals were very profitable even at the time of the pandemic. Tourists felt good in these types of real estate due to little contact with others, peace, and privacy, so this tourist segment was one of the tourist "winners" in 2020 in Croatia - explains Mateja.
ARE REAL ESTATE PRICES DROPPING?
Commenting on the expected decline in real estate prices, Mateja explains that real estate prices have risen in good locations, close to the sea, by the beach, or those with a sea view.
- And as for real estate in lower-quality locations - they have become more realistic.
Real estate with lower quality of construction, poorer equipment, and in poorer locations has dropped in price, although not drastically. Although, such real estate is usually harder to sell, so the fall in prices did not significantly affect the sale - reveals Mateja.
LOCATION IS ALWAYS VERY IMPORTANT
- In the pandemic, the greatest interest was for the northern Adriatic - perhaps mostly due to the availability and proximity of Slovenia, Austria, and the German province of Bavaria. The most attractive locations are Istra, the island of Krk, and the area of Crikvenica. The Zadar area was also very interesting to customers, due to its excellent transport infrastructure, as well as the international airport. The real estate turnover in the southern Adriatic was, unfortunately, a bit worse, but this year we already have great interest and good predictions - concludes Mateja.
The autumn months brought us renewed uncertainty and concern, however, interest still existed. Customers kept coming for sightseeing. Those who had a good motive and desire to buy real estate found a way to come and buy. The winter months are marked by great interest, although somewhat less realization due to the difficult possibility of arrival.
However, we are pleased with the many announcements of visitors, especially customers from Germany, Austria, and Slovenia. They are still looking for modern villas on the sea, building land by the sea or with a sea view, apartments in new construction.
You can see the offer of real estate on the Adriatic coast at: