An overview of the Dubrovnik real estate market.
Dubrovnik real estate market is always active. Regardless of the general state of the residential property market, Dubrovnik is always current, fashionable and desirable. First of all, Dubrovnik offers all the benefits of great climate, as well as clean sea, cultural and entertainment activities, transport connections to the world. It is, simply said, the quality of living at the highest level. And last but not the least, investment in high-quality properties in Dubrovnik has been proven to be a safe long-term investment, reports Jutarnji List on August 26, 2015.
Igor Koprivica, owner of the Dubrovnik real estate agency Progen, knows Dubrovnik real estate market very well. “Properties in Dubrovnik can always find buyers, and prices obviously correspond to the state of supply and demand. The demand is always there, but buyers are much more cautious than earlier and there is a clear upper limit for the prices they are willing to pay for a property. In general, properties with realistic market prices can always find a buyer, while those whose owners have overestimated their value remain on the market for years”, says Koprivica.
There are many sellers who cannot or will not realistically consider all the market-relevant characteristics of their real estate and are demanding prices which are impossible to get. “High prices for some apartments in Dubrovnik do not mean that all the apartments on the market are really worth that much. The price of 3,000 euros per square metre can be achieved by apartments that meet all the important conditions, and these are a great location, quality of construction, open views, a practical interior layout, high ceilings, private parking space, decent environment, nice access roads and clean legal documents. If an apartment does not meet at least one of these conditions, the fair market value declines. This difference in prices, based on the quality of the apartments, is becoming all the more apparent and we think that the trend will continue”, says Koprivica.
In the summer, there are more queries from foreigners and Croats who live in the diaspora. When they return to homeland on summer holidays, they try to find a property where they will spend their retirement years. “These buyers prefer new buildings or homes which do not need a lot of renovations. In Dubrovnik, there are some new buildings, but the apartments are priced at the upper limit of affordability”, says Koprivica, adding that some buy luxury properties which are highly immune to price fluctuations in the real estate market and therefore, in the long term, such investments carry a low level of risk of loss of value.
“Luxury buyers are coming from all over the world. Right now, we have a customer who wants to buy a high-end property, but with the charm of old Dubrovnik. We have offered him a number of original summer houses from the 15th and 16th century, with spacious gardens built by the wealthy town noblemen. Some have been restored, some require a complete reconstruction, but each is the palace for itself and a work of art that is hard to find anywhere else on the Adriatic. We also have an old stone villa by the sea near Dubrovnik from the 1930s in art deco style. The price is one million euros”, added Koprivica.
As far as the real estate for rentals is concerned, the most popular part of the city is still the old town and the area around it, especially if the properties have a sea view. “However, it should be noted that the apartments are being rented throughout the year to tourists in other parts of the city as well. For example, Gruž has experienced a boom of tourists, which has surprised even many of the inhabitants. It is near the bus station and the port, it is oriented towards the south and sunny, with a beautiful view of the bay, the sea and islands. Dubrovnik will soon start a new investment cycle through the development of a marina in Gruž. The local shoreline will be connected in a unique tourist zone, with promenades, biking paths, restaurants, etc. That will be the tourist centre of the city. We already have investors who are buying properties in the area as a good investment for the future”, says Koprivica.