How renting out a luxury apartment can become passive income: a guide for investors

The real estate market in recent years is increasingly attracting investors who are not only looking for prestige, but also a stable source of income.


Luxury apartments in Zagreb, Split, Zadar and Istria are particularly sought after because they combine a top location, design and comfort, exactly everything that clients are willing to pay more for quality and privacy.

Thus, passive income through renting a luxury apartment becomes an ideal way to invest. Instead of the money standing still, it generates regular income with minimal engagement, especially if the property is professionally managed.

Why luxury apartments have a greater potential for profit

Buyers and tenants in the luxury segment are looking for more than just square footage. They are looking for an experience. Therefore, luxury properties, especially those in prestigious locations in Zagreb and on the coast, are rented out faster and at significantly higher prices.


Key advantages of the luxury segment are:


less competition
greater purchasing power of tenants
longer contract duration and stable income


Unlike classic rental apartments, the luxury segment often includes additional services, such as maintenance, concierge private parking, smart systems or designer interiors that justify the higher price and attract reliable tenants.

What return can be expected

The return depends on the location, size and quality of the furnishings, but luxury apartments usually range from 5 to 7 percent per year. For example, an apartment worth 500,000 euros that is rented for 3,000 euros per month can generate an annual income of about 36,000 euros, or a return of about 7 percent, with the additional possibility of increasing the value of the property itself.


In larger cities like Zagreb, luxury long-term rentals usually bring in a stable income, while on the Adriatic coast, especially in Istria and Dalmatia, short-term rentals during the tourist season can be significantly more profitable.


Investors who combine both models often achieve the best ratio between stability and profit.

How to build a stable passive income

Successful passive income depends not only on buying the right property, but also on the way it is used.


Here are a few key steps:


1. Location Selection
Zagreb, Split, Rovinj and Zadar are still among the most desirable destinations for luxury rentals. Proximity to the center, the sea or business zones always increases value and demand.


2. Furnishing and branding
Customers in the premium segment expect more – designer furniture, modern heating and cooling systems, quality materials and refined details. Such investments directly increase the rental price.


3. Professional management
The best way for the property to really generate passive income is to leave the management to a professional agency. Regent Real Estate can take over everything – from advertising, communication with tenants and administration, to space maintenance.

What to pay attention to when renting a luxury property

Renting a luxury apartment requires more attention in terms of contracts, taxes and security. First of all, the lease agreement must be clearly defined, including the duration, amount of rent, deposit and the rights of both parties.
It is also important to insure the property and comply with legal obligations.
For long-term rentals, it is recommended to check the tenant's creditworthiness, while for short-term rentals, you should have up-to-date guest registration and tax records.
With the legal and administrative support of the agency, the owner can enjoy the income without worry, without daily operational engagement.

Long-term potential of luxury rentals

Despite occasional fluctuations in the market, the luxury real estate segment in Croatia shows exceptional resilience. The interest of foreign buyers in Croatia as a destination for a "second home" continues to grow, and the demand for quality, modernly furnished apartments and villas in Zagreb, Istria and on the Adriatic coast does not wane. Such properties retain high value in the long term because they offer what the market always needs – comfort, security and a prestigious location. In addition to a stable income from rent, owners can also count on capital gains because the value of luxury apartments and houses usually increases over time. For investors who want long-term security and an investment that brings results even when the market slows down, luxury rentals remain one of the safest and most profitable choices.



Luxury apartment as a source of secure income

Buying a luxury apartment today is more than a status symbol, it is a financial strategy that allows the property to work for you. With a good location, quality furnishings and expert support, luxury rentals become a reliable source of income that does not require constant presence.
If you are thinking about investing in a property that brings a secure profit and long-term value, take a look at our offer or contact us, and our team of experts will help you find the ideal apartment and develop a strategy that will bring you real, sustainable passive income.