1. With our partners in Croatia we are constantly monitoring the possibilities of investing in real estate. The most interesting are real estates that have a residential purpose. In this direction, we are implementing a project for the construction of a residential property of medium quality on the island of Krk. Also, we are in the process of obtaining a permit for the construction of 6 apartment buildings on the island of Krk in the first row to the sea.
The first project was very grateful at the early stage of design. We have completed the preparatory work and are awaiting the validity of the building permit, and we have already entered into the reservation agreements for 5 out of 6 apartments. In the pre-sale price we have reached is the price of 1900-2500 EUR per m2.
In addition to two residential projects, we also work with our partners in Croatia on two projects on land located in a tourist area.
One land is located in Kaštela. It is a project of building 6 luxury villas and 2 luxury buildings in the first row to the sea. It is a project with a great perspective, and our idea is to get a concession on a maritime affair, with the aim of getting guests from the future resort of the luxury villa to reach the beautiful Split waterfront and enjoy the magic of Split in 15 minutes of theyr time.
The second plot is located on the island of Krk. It is a zone that allows us to build catering facilities without the possibility of building accommodation capacities. Land is considered to be one of the most attractive land on the island of Krk and we hope that, in agreement with the local authorities, we will succeed in changing the purpose. Our goal is to to build a glamping resort. The Glamping resort will enable the development of land without destroying nature and the environment, and will allow guests to enjoy nature, clean sea and beautiful promenades that go below our land and by the sea. This land and this project we consider to be an outstanding potential for development. Under construction is a project to build a luxurious beach bar just by the sea.
From all of the above it is clear that we are dealing with different types of real estate. From real estate for accommodation and enjoyment to real estate for increasing and improving the tourist offer in Croatia. We also deal with concessions with our partners in Croatia. The purpose of the concession is the economic use of the maritime property owned by the Republic of Croatia, which maritime property is under the real estate in our ownership.
So, we are currently focusing on the area around Split and the area of island of Krk.
2. Development on the territory of the Republic of Croatia, especially the island of Krk, is very visible. The island of Krk is called the Golden Island! Golden Island because it was the first in the Republic of Croatia to introduce sorting of waste in 2005. Today, waste disposal on the island of Krk is on the highest possible level.
Also, last year, the authorities of the island of Krk and the local companies owned by the municipalities of the island of Krk, from EU funds withdrew funds for the reconstruction of the complete infrastructure on the island of Krk. This has provided funding for the construction of a new water supply, sewage and optic cable for internet by the summer of 2020. Of course, new pipes imply digging roads, which imply road reconstruction. For example, the road beneath our land where we will build 6 objects is currently being reconstructed. The road will be expanded by 3 meters, a promenade will be arranged and a new water supply, sewage and optic cable for internet will pass through the road. How this will affect the value of our property. The answer is clear.
3. The island of Krk is very different.
The first place is Omišalj, which has an industry. This quality construction land can be purchased for an amount of 100 EUR per m2. However, Omišalj enables the construction of 6 residential units per site. Thanks to this, the profit can be realized at prices of 2000 EUR per m2.
Apartment first row to the sea - price 2300 - 3000 EUR / m2
Ideal for middle class from the European Union.
Njivice - Quality construction land can hardly be purchased at a price lower than 250 EUR / m2.
Apartment first row to the sea - price 3200 - 4000 EUR / m2
Malinska, Krk and Baska
Land - 250 - 400 EUR / m2
Disadvantage - Malinska's spatial plan allows construction of only two units per plot. This means that apartments of 150 - 250m2 have to be buildt in order to pay out the investment. The result is apartments are sold for prices of 500,000.00 EUR.
Apartment first row to the sea - 3200 - 4000 EUR / m2
Šilo, Dobrinj and Vrbnik
land - 150 - 250 EUR / m2
First row to the sea - 3000 - 3500 EUR / m2
Villas in the inner part of the island of Krk can be bought for a price of 300-800 thousand EUR.
4.I recomend our new project in Omišalj on the island of Krk. We are now in the process of obtaining the necessary permits, and with construction we will set off in the winter of 2020. Customers who would appear at this point would certainly get significant discounts and could participate in the entire project implementation process. Together with our lawyers from the Republic of Croatia and our people in the field on the island of Krk, we will provide them with complete protection, security and satisfaction in the work of the project.
Our project envisages the construction of 6 residential buildings. First we will realize the construction of 2 buildings for 4 apartments, ie a total of 8 apartments in the first row to the sea. From the yard you will literally be able to enter the sea.
Why Omišalj ? It is 5 minutes from International airport of Rijeka and the first place on the island of Krk, a place that invests in infrastructure and quality, a place that is peaceful and a place that lives 12 months a year. It is the first place on the island of Krk and real estate prices are such that the value can only grow and never fall. We and our partners currently concider Omišalj the most attractive location for apartment purchase. For the price of one apartment in Malinska in Omišalj you can buy almost 3 apartments.
Croatia is close to Slovenia, Austria and Germany. It is also a land of great natural beauty and people close to us, Germans and Slovenians. Particularly impressive was the northern part of Croatia. The northern part was under the Austrian part of the monarchy at the tima of the Austro-Hungarian monarchy and there is still a sense of the closeness of the local population with the Austrians.
Therefore, because of the abovementioned, with the emphasis on the likeness of the people of the northern part of the Croatian coast with our people and the proximity of the northern part of the Adriatic to Austria, Germany and Slovenia, I am of the opinion that the value of real estate in the Republic of Croatia, especially in the northern part of the Adriatic will grow. This is supported by the fact of good local government activityes when we talk about using EU funds to improve infrastructure as one of the basic prerequisites for real estate growth.
Statement of our partner and project manager Bojan Kreso mag. Iur., a partner in a well known law firma.