Croatian luxury resort Dubrovnik Sun Gardens has seen a surge in agent interest since adding freehold ownership and ready-made mortgage packages to its offering ... the 5-star resort has seen 12 brokers sign up in the last three weeks.
The mortgage product is done in conjunction with Vienna-based Erste bank. It’s fully furnished and offers a 15-year term mortgage, with 60% LTV and a fixed interest rate of 6.6%.
Julian Houchin, commercial director for iO Adria, the owners of Dubrovnik Sun Gardens, told OPP: “Since we’ve got the free hold and mortgage package, interest from agents has gone through the roof, and we’ve signed 12 brokers in the last three weeks.”
“The managing director of Engel & Volkers even came here himself from Germany to sign the product.”
Houchin added that free hold is proving a major selling-point for Dubrovnik, given that the usual practice in the country is for long-term leaseholds. “It’s a unique-selling point,” he told OPP.
“Freehold is hard to get in a Croatian resort context, it is particularly key with the UK market.”
“Post-fees, we are confident we can generate yields of 4%,” added Houchin.
Owners can use their property for five weeks during peak season and on an unlimited basis in the off season.
Dubrovnik Sun Gardens is a 22-hectare resort based on the Adriatic Coast. Facilities include a spa, sports centre, restaurants, bars and shopping markets.
Croatian Times
The historical "yes" Croatians gave to European Union membership at this month’s referendum could mean good things for the country’s tourism, sector experts believe.
That even better (tourism) days are on the horizon for EU-bound Croatia think many hotel owners and tour operators. The director of German ID Riva tours Selimir Ognjenovic, for example, thinks that the referendum outcome sent a good signal to German visitors.
"The German public, ordinary people, appreciate Croatia’s "yes" at a moment when the EU is not in its best shape. That’s interpreted as an outstretched hand of a partner, and not an attempt for Croatia to add weight to other’s shoulders," Ognjenovic says. The budding amiability toward Croatia could make a German or two that hasn’t vacationed there consider spending the summer by the Adriatic.
The head of Kompas travel Ivan Puskar is equally optimistic.
"All countries that joined the EU experienced an improvement in tourism, I believe so will Croatia," says Puskar. Once Croatia enters the Schengen area, things will get even better with less hassle on the borders. Some also say that the referendum "yes" also meant commitment to hospitality standards EU citizens expect.
The owner of Hotel Baska on Krk island, Mario Jantol, has some reservations, however.
"EU is not good news for our tourism on its own. The success primarily depends on us, how we prepare ourselves for the season."
Croatia had a spectacular season last year, thanks to many factors including a long-lasting summer. Few are confident that this season can top the excellent numbers.
Many of the sector’s businessmen are cautious about premature optimism.
"This year will be complicated for the tourism sector," says Kristijan Sustar from the hotel owners' association. "Regardless of the "spectacular" media predictions, it is too early to celebrate because we have to be focused and responsible to achieve last year's results," says Sustar.
