RIJEKA, November 13, 2020 — The RIO-Kantrida project is in full swing in Rijeka. It is also one of the largest in housing construction in the coastal city since Croatia’s independence. Furthermore, the COVID-19 crisis has not slowed down this project which is worth around 50 Million EUR.
Rio Projekti is the investor while the contractor is Kamgrad, one of the largest Croatian construction companies. Those involved in the Rijeka project say that the interest of buyers is great according to Poslovni dnevnik. They add that many buyers from abroad have expressed interest. Many buyers are also from the Croatian diaspora, from Germany and Austria, and distant markets like the US and China.
The complex consists of three buildings (A-13, B-8 and C-10 floors). There are two underground floors for tenant parking. Parking spaces outside of the complex will serve the needs of the shopping center on the ground floor.
Dogma Nekretnine Partner and Consultant in 50 Million EUR Project
Dogma Nekretnine, a real estate agency, is a partner in the project. They have also worked as consultants with architects and urban planners who have worked on the project for several years. According to current figures, the agency has an annual turnover of almost 20 million HRK (2,640,684 EUR). Branko Papeš, director of the agency, says that international buyers had been mainly interested in tourist destinations. Those include regular go-tos like Opatija, Crikvenica and Krk.
“However, the price of residential real estate for attractive locations in Opatija ranges from 500 to 600 thousand EUR. In Rijeka it is possible to get something similar for two to three times less. In addition, this complex has a view of Kvarner and is close to the sea and beaches. Unlike Opatija, for example, Rijeka is an urban area which thrives all year. The city also offers two schools and several kindergartens nearby,” explains Papeš.
He claims that there is also great interest from other parts of Croatia, primarily from Zagreb. Papeš adds that there are also clients from Varaždin, Osijek and the rest of the country. “These Rijeka apartments are more affordable than most recent construction in this location. At a time when no one was buying, during the lockdown, we sold several apartments online, without direct contact. On a daily basis, we receive two to three inquiries from clients outside of Croatia. Although the Croatian diaspora in Sweden is not very large, we also sold several apartments there,” points out Papeš. He reveals that the project is co-financed by two banks — ErsteBank and PBZ.
Rijeka Real Estate Prices Have Risen 5 to 10 Percent Since March
“In general, we had expected a drop in sales and a drop in real estate prices. However, since March we have seen a price increase of five to 10 percent. In these uncertain times, clients seem to have recognized that investing in real estate as a safe investment. And about 25 percent of buyers are buying as an investment. The will likely rent and potentially make an annual return of four to five percent. And currently that is an impossible interest rate at a bank,” continues Papeš.
He notes that nearly 30 percent of the real estate turnover in Rijeka is not related to the Croatian economy. This helps stabilize the market. The reason, he claims, is that a lot of seafarers and people in other industries work outside the country. They earn part of their income abroad and then gravitate to that market.
“Also, unlike the rest of the country, real estate prices have never gone wild in Rijeka. So this is also a kind of trump card today’s micro market. When it comes to customer interest, the proximity to European centers, the climate, and a completely open environment are crucial. This is why the latest data shows that more people are gravitating towards Rijeka. Also, the number of inquiries from Zagreb and Varaždin continues to grow. And this could one day become a new trend in strengthening mobility,” he concludes.