Thursday, July 25, 2024
Real Estate

Dream Estates Croatia – An International Associate of Savills

Anđela Laković - Jun 27, 2024

Estates Croatia has been the exclusive associate of global real estate services group, Savills, for more than 20 years. As Savills associates in both Croatia and Montenegro, this allows us to provide a broader range of choices to our clients and an opportunity to study 2 markets under the umbrella of one company. Both markets are very different when it comes to all aspects of property choice, price points, lifestyle options and buyer’s profiles. Whereas Montenegro certainly has excelled in attracting global brands and snazzy mixeduse resorts, Croatia has advanced in terms of access and infrastructure. However, the 2 countries’ real estate markets have more in common than divides them and from a travel and investment perspective, guests are increasingly seeing one coastline as an extension of the other. Vedrana Kelleher, owner and director of Dream Estates Croatia discusses the business and the market in this feature.

Vedrana Kelleher – Dream Estates Croatia – Director President of the Real Estate Association Chamber of Commerce, Dubrovnik County

Tell us about your history, experience, and expertise in your respective market including why sellers and buyers should choose you as their preferred partner?

Dream Estates Croatia, the exclusive associate of global real estate services group, Savills, have been present in the market for more than 20 years, operating from their head office in Dubrovnik. Dream Estates / Savills Croatia operate in two key market segments – transactional sales and Development Consultancy Advisory. Over our 20 years’ experience in Croatia, we have looked after the property needs of hundreds of clients from more than 30 countries. In turn, we have been development advisors to practically all pipeline product on the Adriatic.

How do you foresee your market in 2024 and beyond? What is the probable price growth, the arrival of new projects, buyer profile and nationality changes etc).

We operate in 3 distinct regions in Croatia – Istria in the north, The Split region and Islands and of course, the Dubrovnik Riviera. Each region has its own characteristics as regards buyer profile, price points and supply. The Croatian diaspora remains very strong across all markets. Istria is dominated by the ‘drive to market’ from Western Europe with Germans, Austrians and Slovenians expected to be the predominant buyers and a good pipeline of supply, particularly of inland villas. Price growth in the region is expected to continue to deliver up to 5% per annum. The Split region has really redefined itself over recent years from a place to pass through to becoming a real destination. This is reflected in very strong price growth which is expected to continue this year. Supply is moderate and the absence of significantly sized mixed use resorts is discussed further below. The Split region is dominated by regional 2nd home buyers with a younger age profile.

Dubrovnik continues to be the shining star as regards price growth and rental yields. The lack of supply in the market driving both year on year. With price for prime properties reaching EUR10,000 / m2, demand continues to be very strong from an older age profile of Western European buyers or locals looking for rental income. Strong demand is seen from the Croatian diaspora and neighbouring countries, seeking to have a dream home in the Dubrovnik Region. The demand from the diaspora group is usually originating from the USA, Canada, Australia and Western Europe.

What are some key insights and your tips of areas or property types which potential buyers should be aware of for future potential growth?

For yields of over net 5%, and yearly capital growth, investors can rarely go wrong with property in Dubrovnik in their portfolio. We do expect changes to the planning laws this year to restrict rental properties in the Old Town of Dubrovnik, to allow, rightfully, citizens to enter the market, so this window of opportunity is narrowing within the town.

What are the primary challenges your agency faces in the current real estate landscape, and how do you address them?

The main issue we face in Croatia, which has been overcome by neighbouring Montenegro, is the delivery of large-scale mixed-use resorts. While Montenegro has delivered top-class branded hotels and resorts, the planning process and laws in Croatia are a detriment to investors.

Green sites for development tendered by the government come with typically a 99-year lease and no visibility as to what happens thereafter. In turn, the timeline to get a project through planning and to the market can take more than 5 years. In markets such as Dubrovnik, we are missing the ‘software’ such as shopping and entertainment to meet the expectations of investors paying such prices. In essence, we are missing a vision and strategy in real estate as we are in tourism goals. There is a significant pent-up demand for exclusive high-quality villas and apartments which is not being met.

We are very pleased to have been involved in development consultancy – advising developers of pipeline mixed use resorts in Dubrovnik, Split and Istria which will bring a significant new level of luxury and branded residences to the market once approved. We commonly remind stakeholders that the value brought by a project such as Porto Montenegro can be seen first-hand in Tivat, where everyone is a winner. Especially the locality, proven in Tivat, which now has one of the highest prices for real estate on The Adriatic, not factoring in Porto Montenegro.

THE MOST INTERESTING AND EXCITING PROPERTIES CURRENTLY IN  DREAM ESTATES CROATIA PORTFOLIO

Newly Built Villa Near Dubrovnik – Price on request

This newly built villa with modern furnishing is located near Dubrovnik in Plat. With 3 parking spaces, only 200 m from the sea, large terrace with a pool and a large balcony the villa is a dream come true. The property is perfectly located in the middle between the Old Town Dubrovnik and Dubrovnik airport with a 10 minute drive to either one. The villa has 5 bedrooms with king size beds and 5 bathrooms. The bedrooms are furnished, equipped and feature sea views. The large kitchen is fully equipped with modern utilities and opens up towards the living room and the large balcony. The terrace has a modern and a private pool with sunbeds, sunshades and a barbecue area.

Beautiful villa with swimming pool near Labin – Price: €1,750,000

Villa is located on a spacious plot of 1,767 sqm, and has total net living space of 273 sqm. It spreads over two levels, has a beautifully landscaped gardens, terraces, and heated swimming pool. The ground floor consists of large living room, open plan kitchen and dining area, two bedrooms, two bathrooms, hallway, and toilet. In front of the living room is spacious terrace with dining area. Indoor staircase leads to the first floor where are two bedrooms with balconies, two bathrooms and hallway. The special feature is the social room with a large bar and a table for eight people for enjoyment and socializing, including numerous board games and another TV.

Luxury stone villa – Price: €2,600,000

The Villa is located on a plot of 919 sqm, spreads on 4 levels and have around 490 sqm of living space. On the ground floor there is a large entrance hall, a living room, large open plan kitchen with dinning area, with patio doors all opening onto the poolside terrace. On the first floor there is one bedroom apartment with an access to a private terrace and garden. The apartment benefits from its own large bedroom with bathroom, and open plan kitchen and living area. Also on the first floor are two en-suite bedrooms, each with balcony and sea view, while on the top floor are a further three bedrooms, one is en-suite double bedroom, and two twin bedrooms with a shared bathroom. Each bedroom has a balcony with wonderful sea view. In addition, on the lower ground floor there is a full plant and utility room with large storage area. The Villa also has solar water heaters.

Primosten, villa for sale, price on request

Modern villa on three floors in the first row to the sea, in a fantastic location. It has a living area of 402 m2, and is located on a plot of 749 m2. The first floor consists of a living room with kitchen, two bedrooms with en suite bathrooms. The second floor consists of three bedrooms with bathrooms, while on the last floor there are two more bedrooms with bathrooms. The garden is cultivated and offers enjoyment by the pool of 71 m2. The modern design and glazing of the villa offer exceptional views of the sea and the surrounding area. An additional advantage of this villa is that it is located in a complex of villas, which offer an ideal ratio of luxury with a touch of Dalmatian atmosphere.

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