More tourist arrivals, but 3-star apartment booking in decline

More tourist arrivals, but 3-star apartment booking in decline

A number of beds in private households, used for legal short-term letting has increased significanty over the past few years. As recently reported by many Croatian newspaper, the number of visitors in the first half of 2018 has risen compared to the year before. However, it seems that a certain number of apartments remained unbooked or with poor occupancy even throughout July and August.

It doesn't take much time to find the culprit – newly categorized apartments are exceeding the percentage of the growth, causing a small oversupply on the letting market.

In 2018, over 20 thousand new beds cam out on the market in 4 Dalmatian counties. Nowadays in Croatia, 90 thousand families are offering short-term letting in nearly 630 beds across the country. Many apartments are categorized with 3 stars and make the most competitive category on the market. Many property owners, encouraged by excellent results in 2016 and 2017, have decided to increase overnight rates by 20-30 percent, causing themselves lousy high-season bookings.

In conclusion, if you are looking for a buy-to-let property in Croatia, keep in mind that high-end apartments and villas are performing really well in booking terms. Monotonous 3-star apartments are the most competitive price-wise and you will either need to upgrade them, or keep the reasonable booking rates.

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ivo

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