Investment Property in Zagreb

Invest in Real Estate in Zagreb

Investment Property in Zagreb
Investment Property in Zagreb

Zagreb property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Zagreb .

Search Map of Zagreb Investment Real Estate

Zagreb ( ZAH-greb, ZAG-reb, zah-GREB, Croatian: [zǎːɡreb] (listen)) is the capital and largest city of Croatia. It is in the northwest of the country, along the Sava river, at the southern slopes of the Medvednica mountain. Zagreb stands near the international border between Croatia and Slovenia at an elevation of approximately 122 m (400 ft) above sea level. At the 2021 census, the city had a population of 767,131. The population of the Zagreb urban agglomeration is 1,071,150, approximately a quarter of the total population of Croatia.

Zagreb is a city with a rich history dating from Roman times. The oldest settlement in the vicinity of the city was the Roman Andautonia, in today’s Ščitarjevo. The historical record of the name “Zagreb” dates from 1134, in reference to the foundation of the settlement at Kaptol in 1094. Zagreb became a free royal city in 1242. In 1851 Janko Kamauf became Zagreb’s first mayor.

Zagreb has special status as a Croatian administrative division – it comprises a consolidated city-county (but separate from Zagreb County), and is administratively subdivided into 17 city districts. Most of the city districts lie at a low elevation along the valley of the river Sava, but northern and northeastern city districts, such as Podsljeme and Sesvete districts are situated in the foothills of the Medvednica mountain, making the city’s geographical image quite diverse. The city extends over 30 kilometres (19 miles) east-west and around 20 kilometres (12 miles) north-south.

Zagreb ranks as a global city, with a Beta − rating from the Globalization and World Cities Research Network.

The transport connections, concentration of industry, scientific, and research institutions and industrial tradition underlie its leading economic position in Croatia. Zagreb is the seat of the central government, administrative bodies, and almost all government ministries. Almost all of the largest Croatian companies, media, and scientific institutions have their headquarters in the city. Zagreb is the most important transport hub in Croatia: here Central Europe, the Mediterranean and Southeast Europe meet, making the Zagreb area the centre of the road, rail and air networks of Croatia. It is a city known for its diverse economy, high quality of living, museums, sporting, and entertainment events. Major branches of Zagreb’s economy include high-tech industries and the service sector.

The financial stability of Zagreb has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Zagreb

 

Renting out your Zagreb buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Zagreb are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Zagreb and be prepared to change your initial outlook.
  • Thoroughly research the Zagreb location with a special emphasis on fringe areas outside the main Zagreb metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Zagreb.
  • Ensure that your target investment property in Zagreb appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Zagreb provides the secure knowledge that your money is working harder than it would in a local Zagreb bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Zagreb, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Zagreb property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Zagreb

Flipping property in Zagreb

 

Flipping property is when we advise clients to buy a Zagreb property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Zagreb market has a time to react to the renovation.

 

The Flipping Strategy in Zagreb

 

Investment property flipping in Zagreb is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Zagreb real estate investments are sometimes referred to by professionals as ‘distressed’ Zagreb real estate.

 

What is distressed Zagreb property:

 

  • Zagreb property in need of renovation
  • Zagreb real estate with a change of purpose and use
  • Oversold Zagreb property
  • Bank repossessions in Zagreb

Put simply, long term investors in Zagreb purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Zagreb investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Zagreb property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Zagreb use a minimum profit value of 22% when looking at potential Zagreb projects.

 

The reason for this is because there are lots that can go wrong in Zagreb property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Zagreb

 

Property Secured Investments is a Private Equity fund that invests in Zagreb and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Zagreb

For luxury property investors hoping to add a superb property in Zagreb to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Zagreb, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Zagreb should be entrusted to only the highest-quality agency.

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