What to Consider When Buying an Apartment in Split’s Old Town

The oldest parts of Split include the Diocletian’s Palace and the neighborhoods of Varoš and Radunica. These areas are known for their unique stone walls, narrow streets, and historic buildings, many of which are protected as cultural heritage by the state.

Diocletian’s Palace itself is UNESCO-protected and listed as a world heritage site. Although many buildings within the palace have been modified over the centuries, much of its original structure remains intact, featuring numerous statues, markings, and original details that bear witness to the city’s rich history.

Diocletian’s Palace is the most prominent tourist attraction in Split, renowned for its uniqueness and grandeur. It offers a variety of sights, including the fascinating Diocletian’s Cellars and the St. Domnius Bell Tower, which captivate visitors with their historical significance and beauty.

Inside the St. Domnius Bell Tower, a staircase leads to the top of the tower, offering a breathtaking panoramic view of the entire city and the Adriatic Sea. This spectacular sight makes the climb well worth it and leaves visitors in awe. Every part of the old town tells a story, reflecting the longevity of its historical heritage. This is particularly intriguing to international visitors, as many landmarks have been exceptionally well-preserved despite numerous wars in the region.

Protected Zones in the Old Town

The Republic of Croatia has designated several zones for cultural heritage protection:

• Zone A signifies complete protection of a property.
• Zones B and C provide partial and ambient protection.

If a property is located in one of these protected zones, this information is recorded in its land registry title. This ensures the preservation of certain buildings as cultural heritage, requiring permission from the relevant conservation department for any modifications or upgrades to such properties.

Right of First Refusal for Properties in Protected Zones

The right of first refusal applies to properties listed in the land registry as having this condition, particularly those in protected zones or within cultural and historical complexes listed as world heritage sites. Property owners must first offer such properties at the same selling price to the Republic of Croatia, the county, the City of Zagreb, or the municipality where the cultural asset is located. If none of these entities express interest, the owner is free to sell the property to another buyer.

Building Quality and General Condition of Properties

In the old town, buildings are often constructed from stone and feature wooden beams, adding to their authentic charm. However, this type of construction may lack reinforced concrete slabs, potentially compromising stability. Consequently, noise from neighbors above or below may be more noticeable in such properties.

When renovating, owners often prioritize addressing these issues by investing in higher-quality construction and structural adjustments. Additionally, renovations in these older, narrower parts of the city can be challenging due to limited access for transporting building materials and furniture, as well as restrictions on vehicle entry in pedestrian zones.

These factors often lead buyers to prefer newly renovated properties, which allow for immediate move-in or continued tourist rental without additional investment. Consequently, such properties typically command higher prices, as they are already upgraded to modern standards and requirements.

On the other hand, purchasing a property in need of renovation has its advantages. It allows buyers to redesign the space according to their tastes and needs, creating a home that fully reflects their style and preferences.

Proper Documentation of the Property

A clean land registry title is crucial for a successful property sale today. However, in Split’s older parts, apartments in smaller buildings may not always be subdivided, and houses may lack occupancy permits. This is often due to illegal extensions, such as building additions or balcony modifications made by residents over the years.

Nonetheless, many property titles in this area may note that they hold an occupancy permit, as they were built before February 15, 1968. This is based on a specific Croatian law that automatically grants occupancy permits to such properties, regardless of any subsequent modifications.

Average Annual Income from Tourist Rentals

This has become a key factor in purchasing properties in the city center. Due to the heavy tourist traffic in this area, the potential for earnings from tourist rentals is the highest. The central location, proximity to landmarks, and a wealth of amenities make these properties highly attractive to tourists, representing a profitable investment for future owners.

Fewer residents now live in the city center full-time, as many properties have been converted into tourist accommodations. Tourism has become the dominant activity, offering property owners significantly higher income opportunities. While this has improved the financial situation for many locals, it has also led to a decline in permanent residents and changes in daily life within the old town.

For buyers, the annual rental income is often the most critical factor, providing a clear picture of the investment’s profitability. Another key consideration when purchasing a property for tourist rentals is the time frame for recouping the investment, i.e., how many years it will take to recover the purchase price through rental income.

This calculation helps buyers better evaluate the potential profitability and long-term viability of the investment.

Conclusion

The oldest part of the city is undoubtedly the most attractive area for purchasing properties aimed at tourism, offering the potential for the highest annual earnings.

This part of the city provides all necessary amenities within easy reach, including numerous historical landmarks perfect for sightseeing and the proximity to Split’s stunning Riva and coastline, making it highly desirable for tourists.

Such a location presents an excellent opportunity for those looking to invest in tourist rentals with high returns.