Top 5 Reasons to Invest in Real Estate in Split

In recent years, Split has seen an increase in real estate investments in high-demand locations – southern neighborhoods with sea views or proximity to the sea, and the city center, which attracts tourists due to its rich history. This growth shows no signs of stagnation, both in the number of investments and in the rising property prices.

High Potential for Rental Income from Tourists

The primary reason investment in Split has grown is the increasing number of tourists and overnight stays. Apartment owners now have the opportunity to generate income from short-term rentals to tourists, whereas they previously rented exclusively long-term to families or students.

Increased Visits to the City and Number of Overnight Stays

According to statistical data from the Split Tourist Board, the number of tourists and overnight stays has increased by as much as 200% in the last decade, excluding the 2020 pandemic break. Following this growth, the number of accommodation units has increased, along with the interest of both domestic and foreign investors in real estate in Split.

Real Estate in the City Center

These changes have also led to renewed investment in properties in the city center. Apartments that were neglected for years are now being renovated into rooms with bathrooms or functional apartments. As a result, the city center has come alive again, not only due to the apartments now being occupied but also because of the shops and hospitality venues opening in the area.

Flexibility for Personal Use When Not Rented Out

One particularly attractive feature for buyers, especially from abroad, is the option to use the apartment for personal needs when it’s not rented to tourists, typically outside the tourist season. This has made buying real estate in Split an even more appealing option for buyers who were hesitant about investing.

Use of the Apartment Outside the Tourist Season

In addition to earning rental income from tourists, buyers benefit from using the apartment for personal purposes outside the tourist season. Owners, especially those who don’t reside in Split, can take the opportunity to relax or work remotely from the comfort of their property. Split enjoys an excellent climate year-round, which is attractive to foreign nationals who may not have such conditions in their home country.

Short- and Long-Term Rentals Throughout the Year

Aside from the option to rent to tourists, the property can also be rented out during the off-season. This is particularly interesting for students, whose academic year aligns with the off-season period. This way, owners earn income year-round, while high rental demand in Split drives up rental prices.

Increasing Property Value Over Time

Another valuable reason for investing is the increase in property value over time. As economic cycles fluctuate between booms and crises, real estate values shift, but ultimately, after each cycle, the price per square meter is higher than at the start. Over the years, the value of a property bought a few years or decades ago increases, making it wiser to invest money in real estate than to save it.

Economic Cycles

Considering the four phases of economic cycles, property prices fluctuate constantly. At the end of these cycles, expansion typically occurs, and over the long term, the price of a property will likely not decrease in the future.

Inflation

The emergence of inflation is another factor motivating buyers to invest in real estate. Inflation decreases the value of money, while the same money, converted into real estate, appreciates over the long term.

Stable and Growing Economic Environment in Split

Split has been experiencing significant development in recent years, especially in tourism and academics. Besides the flourishing tourism sector, the University of Split is linked with international universities, providing excellent opportunities for student exchange, which has led to an increase in foreign students coming to Split and renting apartments.

Tourism Growth

As mentioned, the expansion of tourism is Split’s primary economic growth driver. It can be said that the city thrives on tourism and offers numerous advantages compared to other European cities, ensuring constant tourist visits.

International University Cooperation in Split

The University of Split has been actively participating in the Erasmus program for over 15 years. A large number of foreign students come to Split for semester or year-long exchanges, increasing demand for apartments not necessarily by the sea.

Safety, Relaxation, and Ideal Climate

Lastly, but perhaps most importantly, Split offers a safe environment, opportunities for relaxation, and the enjoyment of sun, sea, and tranquility. Split is relatively close to all European countries and well-connected by transport infrastructure, making it easy and quick to reach.

Safety

The city is known for its exceptional safety, an important factor when deciding to purchase real estate.

Climate

A mild Mediterranean climate provides warm summers and mild winters, rare in Europe. This attracts foreign nationals, especially those who work remotely and have flexible work hours.

Investing in real estate in Split is becoming increasingly attractive to both domestic and foreign investors. With the steady growth of the tourism sector, rising demand for accommodation, and a stable economic environment, Split is emerging as one of the leading cities for real estate investment. Additional advantages, such as the option for personal use outside the tourist season, high potential for property value growth, and favorable climate, make this a long-term profitable investment.