Interview with CEO Ivan Kovačić for Poduzetnik.hr

You are bringing to Croatia one of the leading global luxury brands that operate in all major luxury centers and markets in the world. How do you see the Croatian real estate market? Where is it currently in relation to the competitive market in the Mediterranean or beyond?

The Croatian real estate market is still in its early stages of development. What makes us happy is that we are noticing more and more signs of market transformation and that we are entering in a new phase in which the market will turn to the construction of real estate of higher quality and value. This should lead to the professionalization of the market, which will have even more positive aspects. One of them is certainly the increase in sales volume in the segment of more valuable and luxurious real estate.

What is the X factor in real estate, what leads to an increase in their value?

The right concept, along with a good location, is the cornerstone of value creation. Furthermore, architecture and interior design are extremely important elements that can significantly increase the value of the property. These are elements that have significant room for optimization on the Croatian market and which can thus affect a significant increase in the sales value of real estate. It is important to look at what the competition is doing in the Mediterranean, what quality of real estate products they offer and at what price.

Is there already interest in Croatia among wealthier buyers? How can our market attract buyers with higher purchasing power and how can we make this turnaround from the demand for medium and low value real estate?

That twist is very easy to make. Croatia is a country of exceptional natural beauty in the heart of the old continent with one of the most beautiful and indented coasts in Europe. The interest of wealthy buyers is unquestionable. The only question is whether the market is ready to offer real estate products and facilities in tourist destinations that will meet the needs and requirements of the wealthier clientele. For a more serious turn towards the luxury market segment in Croatia, it will be necessary to take into account the strategies of competing countries in the Mediterranean, their real estate tax treatment, immigrant incentive policies for wealthy individuals and other initiatives that try to attract qualified and wealthy buyers.

Is our market ripe for master projects and how do they fit into your market strategy?

The market is unquestionably ready for serious master projects. These projects should be facilitators of the evolution of the destination from the zimmer frei market to the modern market of high value real estate and tourism products. This new market would, through various multiplier effects, create significant cultural, economic and environmental benefits for all participants including the State, local governments, people and the private sector.

In your opinion, what should be the development strategy of the Croatian real estate industry? What should be our goals and what benefits would it bring?

Sustainable development should certainly be one of the priorities. Maintaining the indigenous way of life and the spirit of space and urbanism that maximizes the values of space and natural beauty are of significant long-term importance for Croatian society, the tourism and real estate industry and should certainly be the cornerstone of the development strategy.

...

You can read the full interview at the following link: Poduzetnik.hr