17.10.2019

Is it worth investing in real estate?

With every investment, you must be prepared for the risk of losing your stake. There are few kinds of investments, a risky one such as stocks or bonds, or safer like investments in real estate. From beginning of mankind land is considered wealth, and we agree with a statement by Mark Twain: "Buy land, they aren’t making it anymore."
Investing in real estate is the best and safest investment with which you can never lose all your investment and which can always bring you passive income through renting or a roof over your head.
Below we bring you more information about the benefits of investing in real estate in Dubrovnik and other tourist destinations throughout Croatia.

The growth rate of real estate in Dubrovnik

Investing in real estate is profitable due to several things, and the first on the list is certainly the growth of real estate prices in Dubrovnik. Dubrovnik, like many other places on the Adriatic coast, from year to year records a stable and continuous growth in the price per square meter. Unlike other investments such as investing in stocks or bonds, investing in land or real estate is considered much safer. Investing in real estate in Dubrovnik over the years has proven to be an excellent step, as in addition to increasing the price of the property itself, during the tourist season brings passive income. This is one of the main advantages of this investment, which guarantees the investor the possibility of additional earnings through the ownership of real estate, and return on investment through the sale of real estate.

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Real estate investment stability

Unlike other investments, real estate investment is considered the most stable. Apart from the fact that real estate prices are rising in good locations, this type of property, unlike shares, is controlled. It cannot disappear overnight due to some economic developments. Real estate will always be a physical asset that can generate rental income or in which you can live in. In case you, as the owner, invest in the improvement of the property, its renovation and furnishing, then its price will increase even more. Therefore, investing in real estate allows you additional control over the investment and you can shape your own destiny, while when investing in stocks, you depend on the company in which you invested.


Using real estate for your own purposes and savings

We have already written through the text that real estate can be used for your own purposes, which is another advantage of this type of investment. By buying a property in Dubrovnik, you can use the property for yourself for a certain number of days during your vacation and thus save by paying for apartments, and during other days of the tourist season you can rent the property and thus generate additional income. In recent times, due to declining interest rates on term savings, more and more people are opting for savings and achieving growth in deposits through real estate investments. Real estate in Dubrovnik and the rest of the Croatian coast has proven to be a great way to earn through investment and unlike low interest time savings, through owning real estate and increasing its price, and additional earnings through renting - this way of saving is much more profitable than time savings in banks.

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Real estate rental and passive income
The main reason why many decide to invest in real estate in Dubrovnik is passive earnings through renting during the tourist season. Due to the extremely expensive price of accommodation on the Adriatic coast, good earnings can be made through daily renting during the summer. On the coast, real estate is rented on a daily basis, and in continental Croatia and larger cities on a monthly basis. Through daily rent, much higher earnings can be made, but you have to try to fill all the dates during the summer season. There are more and more tourists in Croatia from year to year and predictions are that this graph will grow continuously and stably, which therefore increases the rental price and the price of the property itself due to higher demand.

Finding a property in Dubrovnik
Dubrovnik stands out as the city with the most expensive price per square meter in Croatia. Precisely because Dubrovnik has been the most popular tourist destination in Croatia for years, it is the safest location for investing in real estate. An attractive location is crucial to the return on investment, but you must also keep in mind - the more attractive the location, the higher the price. In addition to the location itself, the price of real estate also depends on the type, condition and size. Depending on your budget, you can choose between an apartment, a house or a luxury villa, and in the offer of our agency you can find various real estate in Dubrovnik for sale.
Keep in mind that every investment is risky, and although investing in real estate in Dubrovnik is one of the safest forms of investment, it does not necessarily mean that there is no risk. Before investing, you should definitely think about it well and then decide.

Real estate investment costs
You must also keep in mind that real estate is a physical asset and that it requires maintenance, payment of running costs and occasional renovations. This means that in addition to the initial investment, you also have a fixed monthly cost of owning the property. Running and maintenance costs are not high, but you will have to spend a little more money to restore the furniture over time. The positive thing is that with renting a property you can earn and these costs will then be negligible.