December 15, 2017 - A look at the luxury property market with Sotheby's Croatia International Realty CEO, Marko Pažanin.
- Croatia had a real estate boom in 2004-5, which was followed by the global crisis, and the foreign interest in buying here has never quite recovered. How would you assess the state of the property market today?
- In the last two years the market has recovered and is currently on the rise. Croatia is still considered as a newly discovered market for investments in luxury real estate, and there is a substantial interest from foreign investors but there is still one more factor. I strongly believe that banks have to give more funds in the sector of real estate investments so the market can fully recover.
- Many foreign buyers back then experienced huge problems with paperwork. Has that situation improved at all, and what message do you have for potential buyers concerned about the legalities?
- Since Croatia became an EU member in 2013, the restrictions and obligations for the EU citizens have downsized and have become more simple but still there are some paperwork obstacles. The biggest problem can also be the lack of research investors do before indulging in some project. Investors must determine that everything is in order with the ownership and other legal papers so that the process of the purchase would go without any problems. I strongly advise hiring a local expert and a lawyer to make sure this part of the process goes without problems.
- The name Sotheby's International Realty is synonymous with luxury property, and it was a major piece of news for the Croatian property market when you announced your intention to open an office. Tell us more about why you decided the time was right now.
- Croatia is a rising destination for investments, both in the private and business sector. The lack of agencies that ensure full dedication to the process made our goal quite easy - finding the right project for the client, advising, handling legal and administrative work and concluding the sale. There is no better time than right now because we wanted to be the reliable partner for our clients and a prompt ambassador of Croatia in the world when it comes to real estate. Croatia Sotheby's International Realty provides a complete service, professional guidance and strict discretion starting from the first contact. I believe this kind of luxury service is something that we introduced for the first time to this market.
- Croatia is one of the most beautiful countries in Europe, and its stunning coastline and islands offer numerous possibilities for those wanting to buy a luxury property. How does the Croatian market compare with the rest of the Mediterranean, for example?
- For us there is no better place than Croatia in the Mediterranean. The climate, rich culture and history, natural beauties, splendid architecture often mixed with traditional construction... The additional security is the fact that Croatia is a stable member of the EU and has strong laws and stable political and economic environment. Ever increasing numbers in tourism also show that we are a stable and secure country for foreign citizens, and also a great opportunity for a guaranteed success in investments in tourism, catering and the hotel industry.
- Investing in real estate projects has brought plenty of interest, but also plenty of projects. You have some great projects in your portfolio. What guarantees can you give to potential investors?
- Exactly what I mentioned in the previous answers. All those projects are based on research and solid numbers that show the potential of a certain project. We pick our partners carefully, presenting the projects we believe in, and that corresponds with our brand's vision in our portfolio. After one look at certain project documentation, economic and statistic numbers it becomes clear to everyone that we do not sell an empty story but a project we strongly believe in and stand behind it with our brand.
- Which areas of Croatia are attracting the most interest from your clients?
- The most popular locations for both local and foreign buyers are the ones that allow them to experience luxury as the general feeling. That feeling is almost palpable in the historical city centers, where the properties overlook UNESCO world heritage sites (Dubrovnik, Split, Trogir), or in private natural escapes located on one of the Croatian islands
- And finally, get our mouths watering - show us three of your best properties and explain why they are a great buy.
