September 26, 2018 – Split is a tourist city undergoing enormous change. An overview of the current property market with leading local real estate agency, Trgostan.
1. You are the oldest real estate company in Split and were here in the boom years of 2004-5. How do you see the market today?
The market stabilized in the last three years and it is easier to evaluate properties and to predict its movements now. However, Split is something different – property prices went up approximately 10-12 % in the last three years, and we expect further increases in 2019.
2. Tourism has obviously exploded in Split and there are now many more rental properties than before. Where are the best areas to buy for someone getting into the rental market in Split?
Tourists love to be in the historical core and the area nearby, as well as close to the beach. So, the number one spot is Diocletian’s palace, the surrounding area under UNESCO protection and the old fishermen neighborhoods of Varos and Radunica. Bačvice area and Meje are also very interesting, with several beaches, as well as the newer parts of Split by the sea, particularly Znjan.
3. What is a realistic rental season these days in Split? How many weeks can people expect to rent their apartments for in a good location close to the centre?
Central locations have the longest season and property owners in those areas can expect at least 4-5 months, if not more. It definitely depends on the accommodation quality and marketing activities. The season length in Split is strongly related to the low-cost flights, so it starts around April and ends in November.
The low season is also undergoing change, and we expect the season to last even longer in the following years following the growth of the city.
4. How do you see the market developing in the next couple of years?
It will be interesting to see what will happen in Split. Prices are going up and locals can hardly follow these changes, so young families are moving from central locations to cheaper neighborhoods. Also, a huge number of new tourist units opened this summer, with more planned in 2019. Therefore we expect low growth of the prices in the sought-after areas and stabilizing in all other areas. Some prices in the least attractive areas will probably decrease.
5. You also cover several of the islands near Split. What are the most popular places, and what are people looking for in general?
The most popular islands are definitely Brac, Hvar and Vis. While the Hvar market was very quiet during 2016 and 2017, it became busier this summer. Vis island is constantly getting more attractive, primarily because of the fact that it can be reached as fast as Hvar, but it still remained untouched and quiet. Brac is one of the biggest Croatian islands, very close and well connected to Split, with a number of little settlements, so it’s very often the first choice to foreigners that haven’t travelled a lot around the coast.
Buyers are mostly looking for traditional stone houses with an outdoor area in the old centers, sea views are preferred, as well as seafront locations or even inland ones for those who can’t afford the prime ones.
6. Give us a flavour of what you have on your books. Five of your best deals, and what makes them so special?
September is the busiest month – most of the new listings come to our books, as well as most buyers complete their purchases then.
