Is seafront property a good investment?

Is seafront property a good investment?

Local agents agree that nearly every other enquiry coming from overseas buyers is related to the seafront property. Sometimes we can't wonder enough how eager people are to find a property steps away from the sea. The bad news is – sellers know it too and they are reluctant to negotiate when it comes to beachfront properties.

We should probably mention that as of 2007, urban planning has strictly limited new residential zones to be backed up at least 70 meters from the sea. Because of this, the number of seafront locations became limited to existing zones, which reflected in surged prices.

Ever since, the prices of the waterfront properties in Croatia have been on increase, currently breaking all records from the past years. Still, they are the best selling property category on the market and every day there are less of such properties available for sale. In fact, many buyers looking for a waterfront property are now forced to buy an existing house just because of the location, often resulting with the existing object being knocked down and rebuilt from the scratch. Naturally, this increases the total investment, proving that supply and demand are playing the crucial role in this market segment and that some buyers are consciously willing to pay a lot more just to have a property in unique location.

If you do have limited budget, we would sincerely recommend you to widen your horizons as there are beautiful opportunities away from the first line to the sea, where you can get much more value for the money. In small coastal villages, seafront or egde of the settlement often means a 10 minute walk distance – not much if you have 50% lower price in mind.

If you consider buying a waterfront property, please keep one very important fact in mind. Even if the plot is privately owned all the way to the sea/beach, an area of 6 meters from the tide wave is a public (maritime) good and, by the law, it can be accessed by anyone. In reality, people in Croatia respect privacy in small places and it is less likely that a stranger would sunbath in front of secluded seafront villa.

In conclusion – if you are less stressed about your finances and able to afford a seafront property in Croatia, whether for personal enjoyment, development or re-sale, there are still some good opportunities on the market to consider. In that case, seafront property will be a sound investment that you could cash well in the future.