Editorial Invest in Slovakia
A few days ago we published on our website investment project Park Lesná***. It is the construction of family and holiday homes in the High Tatras.
Project details can be seen in the INVESTORS CLUB section. By the way, it's been 3 days since the project was published, achieved a decent success.
This area intimately I know. I grew up here. And I invest here myself. This week, I'm going to do some from my cell phone this week of what this place looks like right now. You have to see it!
It is an exceptional location.
PS: I'll take those pictures and pin them to our Facebook page, so like it so you don't miss it. In case I forgot, I hereby ask my colleague Maria to remind me :).
A few years ago in Stara Lesna Phase I of the construction of holiday homes has startedwhich was a huge success and every last house sold.
By the way, the rent for a holiday home here is somewhere around 130 euros/day. Great business at 80% occupancy.
The demand for holiday properties in the High Tatras has increased sharply in recent years. The breakthrough came sometime in 2013-2014 after several terrorist attacks in Europe's frequented tourist centers and well-known holiday resorts.
Slovaks, Czechs, Poles, but also Russians (not only them) started to look for safe and close places for holidays with their families. During this period, the phrase began to resonate throughout Europe, not "luxury or lucrative holidays", but "safe holidays".
If your hotel in that time Google found it under the phrase "safe vacation," you would have sold out in 10 minutes.
The High Tatras seem to have become just the safe holiday (if you don't climb in sneakers in bad weather on Gerlachovský štít without a mountain guide), but at the same time a beautiful and unique holiday destination with beautiful nature, as if made for adventures.
Other important factorsthat have influenced the visitation of our mountains are applications booking.com, airbnb.com and others, through which people from any part of the world can book a stay at an attractive price and plan an easy and inexpensive trip directly to us.
High Tatras last 5 years breaking attendance records and the tourist business started to thrive. This, of course, also affected real estate. Today we have reached a once unimaginable level, when we sell in the High Tatras apartment flats at a price that is close to 4 000 euros/m2!
That's 300 000 euros for an 80m2 apartment.
In 2018-2019 apartment flats were sold at lightning speed. And they were sold 100-odd.
It is the traffic that I mentioned above that affects this. Buying a vacation property is an investment that generates you a quick return on rentals.
People from all over the world are buying investment property. These are not properties for permanent living. They are properties for occasional holidays for the owner and for renting out to tourists from all over the world.
If you start thinking this way, you suddenly understand that you have opened the door of potential buyers to the whole world. People from Japan, who occasionally come to the High Tatras for a safe holiday with their family and generate interesting cash flow from rentals throughout the year, can buy such a property.
Park Lesná*** is a new project.
New project Park Lesná*** envisages 12 holiday homes, which will give future owners more space with a larger plot.
There are few holiday homes for sale in the High Tatras. In most cases, apartments are for sale. However, a holiday home often provides a higher added value for the new owners or holidaymakers than an apartment.
The problem is the lack of space and large plots of land for such "house" construction. And if it can already be found suitable land for construction, the developer in most cases chooses to build an apartment building with a multiply larger number of apartments. Economics clearly wins in this case.
In the calculations for Park Lesná*** is calculated with the price of 1 750 EUR/m2. Which is a very friendly price compared to the surrounding area with the potential to achieve an even higher yield. In this case, however, I agree with the opinion in calculations rather carefully than with too big eyes.
It is quite realistic that 12x of the holiday homes will be sold already in pre-sale or on completion. It's not a massive construction. If they are built properly, with an emphasis on quality and surroundings, none of us doubt the next successful phase of the holiday resort called Park Lesná***.
To be honest, I must also mention the risksthat accompany the developer or investors in every single investment.
The market is unpredictable. Even if all indicators tell you "yes", with unpredictable situations can complicate things.
I don't have right now to I am thinking of the terrorist attack on Lomnickom Peak. It's very little probable. Although, this would certainly make the situation on the market with would have some impact on the real estate market.
Crisis.
If tourism in the High Tatras slows down significantly due to the crisis, it will also affect real estate sales. I remember 2009. After this year the High Tatras remained half empty for 3 years.
But I don't want too to compare 2009 with 2019. At that time, visitors in the High Tatras were still booking their stays via landlines.
Today, thanks to the internet and apps, this site is accessible to a much larger part of the world. And even with the crisis, hotels, guesthouses, apartment houses have a great chance to find enough visitors for their growth.
Well I remember also the year 2004when the High Tatras were hit by a calamity. There was absolutely no one in the Tatras that winter! It took 2 years for people to find their way to our mountains. But such a thing, unfortunately, sometimes spoils your plans indefinitely.
There are risks and opportunities. It's like this with all the investments we make in life. It is important to weigh the level of risk and make a decision.
For us, is Park Lesná*** investment project with potential, a fair return and definitely deserves your attention.
I'm keeping my fingers crossed for you on your passive income journey.
