Kastela near Split in Dalmatia is a great place to own property in Croatia.
The area is very popular with tourist and foreign property investors looking to buy property in Croatia. This is due to its proximity to the water, the UNESCO town’s of Spit (30 minutes) and Trogir (15 minutes), the airport (15 minutes). Moreover, the area is charming and full of character. There is always something to do and see. Alternatively, just sit idly in a café along the promenade or in a restaurant or on the beach.
The area is buzzing in season, but is never too over crowded as many guest go on day trips to surrounding areas. There is a small road and promenade that runs all the way along the coastline. The setting is beautiful next to the sea, views of island Čiovo and Split across the water with the Mosor mountain range in the background and to the north.
Lots of properties in Kastela have now been bought and renovated to their former glory by a combination of foreign and local Croatian real estate buyers. Due to its popularity with tourists and its proximity to the airport the tourist rental market is good.
As with most places in Croatia, real estate prices in Kastela have come down considerably pretty much in line with other areas meaning around 20% to 30%. However, houses, in particular old stone houses, near or next to the water have retained much of their value due to lack of supply. But if you go down a back street or two it is still possible to find very good value but you will need to be prepared to renovate.
If renovating to create a rental product it is always important to know your market and make sure that the standard of the renovation is in accordance with your potential clients requirements. Don’t under or over do it. With building prices having come down too, it is possible to renovate properties for less and if you do the management yourself you can reduce your budget significantly.