Colliers International: Tourism remains the most active investment sector

first_imgTourism is still our most active sector, and investors are most interested in investing in coastal areas, and in the two largest cities, Split and Zagreb. According to the latest research and analysis of the Croatian investment and real estate market by the consulting company Colliers International, the total volume of transactions in the commercial real estate market reached about 810 million EUR, which is twice as much as in 2017, all as a result of positive investor sentiment and attractive returns. Investors focus on the retail and HTL sectors, but the number of projects under construction in most sectors is still significantly smaller than in the pre-crisis period, which has the greatest impact on prices in the housing sector. HTL most active sector However, the analysis emphasizes that numerous factors threaten the competitiveness of Croatian tourism and hinder further investment potential. Thus, the main obstacles include the level of VAT (one of the highest rates in the Mediterranean), the high rate of total wage contributions, the lack of skilled labor, bureaucracy and the increase in tourist taxes.center_img While on the one hand there is a lack of foreign investment, the leading domestic HTL players in Croatia (Adris, Valamar, Plava Laguna) have continued to make large investments to improve their quality and competitiveness. Regardless of the lack of quality real estate for sale, in 2019 it is expected to continue transactions in commercial real estate, mostly in the HTL sector, as well as to strengthen the share of office real estate in the total value of transactions. ATTACHMENT: Colliers International, / Research and analysis of the Croatian investment and real estate market (H2 2018 market overview & 2019 forecasts)last_img

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