ROI - a key motive for overseas investors |
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ROI - a key motive for overseas investors
Return on investment (ROI) is the main issue that motivates people buying property in Croatia and other foreign countries, according to new research. A poll of 12,000 overseas property owners, carried out by Savills Research and Holiday-Rentals.co.uk, revealed that 53 per cent of buyers were motivated by pure investment. Another 18 per cent of respondents said their purchase was intended for use as a retirement home and 11 per cent saw it as a method of boosting retirement income.
Ten per cent bought property in Croatia and other countries to use as a second home or holiday accommodation and four per cent said their aim was to provide a place for extended family to stay. Lucian Cook, director of Savills, said: "Over half of all respondents cited investment as the main reason for purchase with rental potential being the most important financial consideration influencing their purchase."
Croatian property market benefits from pre-EU status
While many individual investors have been biting their nails and taking a wait and see approach as the arguments still rally – will it, won’t it, will Croatia make EU entry by 2009 or won’t it? One brand new, pedigree staffed fund management company has leapt in ahead of the crowds because according to their in depth due diligence, Croatia’s property market is actually benefiting now from its pre-EU status.
The company is called Castle European Estates and one of its founders explained - “we will be looking at transition economies in emerging Europe, principally non-EU and non-Russia. The economies in those regions are not benefiting from either Russian growth, Russian near abroad investment dynamics or Europeanisation” - and making up the core of their transition market investment approach and providing the basis upon which they are predicting real estate related returns in excess of 20% per annum is Croatia. |
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