Interview with CEO Ivan Kovačić for Glas Istre

The coronavirus pandemic has shaken the foundations of the global economy and there are very few activities that will emerge from this year untouched by the consequences of market closures and stringent epidemiological measures. The real estate market also felt weaker capital flows, with the exception of one segment, the luxury real estate market, which was was not significantly affected by the pandemic in terms of supply and demand in 2020. Well-to-do people from the world of business, entertainment, sports and all other spheres of life are often looking for some new part of their "paradise on earth", and many of them have found it in the past years in Istria. It is known that houses in Istria have former Formula 1 star Ralf Schumacher, son of pudding king Richard Oetker, then Andreas von Bismarck, one of the heirs of the first Chancellor of the United Germany Otto von Bismarck, Scottish Lord Alexander McEwen, and many other foreigners and wealthy Croats.

Istria, therefore, is definitely no longer unknown in the world of the famous and rich, and will soon be even more represented and visible in the global luxury real estate market, as our region is one of those in the focus of the world's leading luxury real estate agent Christie's International Real Estate, which has recently been present in Croatia.

Istria has been recording a steady increase in the quality of real estate for a long time. Currently, medium-value real estate is being predominantly developed, which is being built with the aim of vacation rental and which then ends up on the market for sale. What can be noticed is that lately there are more and more very high quality and luxury real estate products that meet international criteria in terms of design, quality of materials and content. The challenge and limitations in increasing the volume of realized transactions of such real estate are often high price expectations that are not in line with the development phase in which Istria, as a destination, is currently. Istria has significant potential to continue raising the quality and value of real estate, and in order to realize this potential, it will be necessary to continue to develop Istria as a luxury destination in terms of tourism, gastronomy, entertainment and trade, and create real estate that is internationally competitive.

When we talk about prominent real estate, currently the dominant demand is for houses located directly by the sea or houses located outside, or above the city centers that provide intimacy and panoramic sea views. With these categories, the demand for apartments is always present, although with the current situation the focus is more on detached houses and villas that provide owners with greater intimacy and security. When it comes to interior design and architecture, tastes vary quite a bit depending on the emitting countries from which potential buyers come. The trend of market demand is increasingly directed towards modern buildings with full-height window openings that allow unobstructed views of nature and the sea and allow light to enter. Contemporary interpretation of traditional architectural and design elements can also be very interesting, especially in rural destinations where customers are looking for a touch with traditional, but at the same time appreciate the functionality and benefits of modern design solutions.

Christie’s is a name that has long been synonymous with exclusivity, expertise, trust and discretion in the luxury real estate business. Founded by the world-famous auction house Christie's, Christie's International Real Estate has historically focused on the luxury market segment, and today luxury, as a price determinant, is increasingly being replaced by luxury and personalized service provided in the middle price range. When it comes to the domestic real estate market, Mr. Kovačić says that it is still in its early stages of development.

You can read the full interview at the following link: Glas Istre