Demand for the new ‘côtes’ of Europe is increasing even faster. Developers are reacting to the new demand and are rapidly building up the last pieces of unspoilt coastline. Despite the fact that Croatian tourism increase is amongst the most spectacular in Europe, there has not been a lot of new construction development going on in this sector. New, strict, ecological laws are preserving Croatia’s biggest treasure. The launch of the first resorts, that respect these new environmental laws, is exploding Croatia back to the list of top destinations in the world for second home real estate.
Among all the projected developments, there are a lot of unvaluable plans. But there are also a few potential success designs that are catching our eye. Middelland is, through its central position in Dalmatia, daily being offered new projects to sell to the European market. We have prepared a selection for you. Scroll down in this newsletter to see our offer.
What is off-plan?
Buying off-plan means: buying from the drawing. Project developers often try to minimize their financial risk exposure by starting the sales before the construction starts. As there is no ready-to-show product in this phase, there is mostly a price benefit to the purchaser. Also, when buying off-plan, you are paying the prices of today for something that is finished next year. In a fast rising market like Croatia you will this way make your first yield on delivery of the building.
Advantages of purchasing off-plan
- Less purchase costs: in most cases you only pay the real estate transfer tax (5%) only on the land part of the property. Most of the times you also don’t pay the agent fee (this fee is usually included in the sales price).
- More choice within a project: you can find the property of your choice with different budget in the same resort. This gives you more possibilities to weigh your choice.
- Mixed use: this concept is gaining more popularity world wide. For buyers, as well as holiday goers, there is a growing demand for leasure, wellness, restaurants and bars within reach or as part of the domain. The combination of hotels, apartments, villa’s and dining and wining offers better letting possibilities.
- New buildings are designed to cater to the needs/demands of ‘new’ buyers: larger terraces, swimming pools (this often hard to find in Croatian real estate).
- It is often possible, in accordance with the developer, to alter the layout of your property before it is built.
- Easy maintenance and cost saving thru the larger number of equal apartments and cost effective property management.
- Shared cost for swimming pools etcetera make a relatively cheap apartment interesting for letting.
- New apartments are better for letting as they comply with all demands, i.e. no leaking roofs or taps. This is important for people who demand perfection on their only holiday per year.
- New property usually offers guarantees for the different constructive elements
Payment by instalments until the date of delivery
You are doing business with a company/developer; this itself has some advantages:
- straightforward handling of contracts. All is organised transparently
- when the developer is a VAT-active company, you can, when buying through the company route (see how to buy in Croatia) reclaim the VAT that is already included in the asking price. This is 22% on the building part and 0% on the land. In average this is 15% that can be reclaimed.