Special edition newsletter
REAL ESTATE AND CONSTRUCTION - From vision to investments
Jan Schoch, founder and CEO of Anova Service AG - King's Fountain introduces Swiss standards and a Swiss way of living
Jan Schoch, founder and CEO of Anova Service AG, is convinced that this complex, which will consist of 10 buildings and 100 residential units, with a hotel, a restaurant and a spa center, is different from all the new construction projects in Belgrade.
In an interview with the portal eKapija, he reveals the idea behind creating an apartment complex that will be so luxurious and comfortable for life that it will be an alternative to buying or renting a house in Dedinje, as well as an alternative to staying in the best hotels in Belgrade.
We also learn that the renowned company GOCO Hospitality will open its first spa center in Serbia right in the King`s Fountain complex, and our interlocutor explains why Serbia is a good market for luxury residential complexes, but also an ideal location for ecological construction.
-King`s Fountain project will definitely be the third largest Swiss investment in Serbia, as well as the largest Swiss investment in real estate in Serbia. We have paid great attention to analyzing the real estate market in Belgrade, not only from a professional and business perspective, but also from the perspective of the needs of our potential customers. We have tried to apply our findings to the King`s Fountain project, and these findings are that customers want a premium location, top quality construction standards, and certain amenities that will improve the quality of living. Here, I am mainly referring to facilities like a spa and wellness centre conceptualised in a manner that is entirely novel for Serbia. On the other hand, many buyers want to invest in real estate in which they will not live, so that they do not have daily obligations related to the rental process itself, with a certain guaranteed and attractive return on their investment. These are usually buyers who opt for investment properties in the absence of alternative investment methods.
We also concluded that it is important to the aforementioned buyers who they buy the property from. Here, I am primarily referring not only to the size of the company itself or its financial strength, which is also very important, but also to the set of values according to which the company operates and for which it is known and recognized in its field of business. I believe that Belgrade is currently lacking projects that contain the above-mentioned components, and I believe that we will be among the first to realize a project of such a type in Belgrade and Serbia.
- I would say that it is a combination and synergy of all the above factors. King`s Fountain differs from all other new construction projects in Belgrade because of its location, right next to the White Palace, and all the buildings within the complex have only three floors, as well as spacious courtyards. We have strived to create an apartment complex that will be so luxurious and comfortable to live in, that it will be an alternative to buying or renting a house in Dedinje, as well as an alternative to staying in the best hotels in Belgrade, since a large number of apartments will be rented out on a daily basis. Our desire was also to show that Belgrade has premium residential locations other than those which are usually mentioned, and to create the ideal option for all those who are looking for a luxurious apartment in a peaceful location, but do not want to exchange the proximity of the center for peaceful surroundings.
The King`s Fountain project is also architecturally unique, as it is a concept of a community of residents in several buildings, each with its own courtyard and garage, and all buildings together form a whole, with a central street and a large number of common facilities and services. The architect behind the concept for this project is Justin Russli, a renowned Swiss architect who worked on King's Landing with our Belgrade project office, Beging.
One of the included amenities is a spa centre where all residents receive a discount, then a restaurant, as well as numerous other services that make everyday life more comfortable. A very important service for those who buy an apartment as an investment is the possibility of centralized apartment rental, which I have already mentioned, but I think it is worth repeating, because the owner does not have to advertise the apartment and welcome guests himself or herself, as team does everything.
In addition to all this, the renowned company GOCO Hospitality will open its first spa center in Serbia in the King`s Fountain complex. GOCO Hospitality`s decision is based on the assessment that this is a premium location that clientele will appreciate the most. GOCO spa centers are not designed for a large number of users at the same time, but are designed in such a way that the very journey to the spa center is appealing. That is why they are usually opened in less busy, but prestigious and pleasant locations. They do not shy away from their surroundings, but rather fit into them, and that is why Dedinje is the ideal location.
The project enables the purchase of real estate (serviced apartments) with a guaranteed rate of return of up to 5% per annum. Does this mean that the target group mostly includes buyers who will not use the property permanently, but only occasionally, and rent it out for the rest of the period?
Our experience so far with similar projects in Switzerland, where we are currently investing over 125 million francs, shows that the concept of serviced apartments is becoming increasingly popular and that more and more people are opting for this type of investment. We believe that this is not only the case in Switzerland and neighboring countries, but that Belgrade and Serbia are also moving in that direction and we see significant market potential in the coming period.
Accordingly, we have decided to offer all those who opt for a serviced apartment a guaranteed return of 5% per annum on the nominal value of the apartment they have purchased. This means that we essentially take on any risk of renting out the property. We also leave the possibility for our customers to spend part of the time during the year in the apartment they have purchased.
Our target group are buyers who will use this property occasionally, but also all those who will choose King`s Fountain as their permanent home or home for a longer period, for example for professionals, managers and diplomats who come to Serbia with their families for several years. We believe that a combination of diverse groups of residents will represent added value within the project.
- From all of the above, it follows that Serbia is a good market for luxury residential complexes. And not only that, it is a market that has development potential in this segment and that process will only intensify in the coming period. Here, I am primarily referring to the combination of an excellent location, high building standards, offered amenities and the overall concept of the complex itself.
How would you describe the Serbian real estate market? What makes it specific compared to other countries in Europe?
- The real estate market in Serbia, and here I am primarily referring to Belgrade, seen significant development in recent years in all relevant segments - commercial, residential and others. Along with organic growth measured by an increase in the number of square meters of all types of space, prices have also naturally increased.
What is visible in the past 6-9 months is that there is a slight cooling of the market, and therefore my expectations are that the price growth will slow down, even stagnate. Here I am primarily referring to apartment construction, where a drop in prices can also be expected in certain locations in Belgrade.
In such market circumstances, buyers of premium real estate will be oriented towards specific projects that offer a specific context and innovative solutions. I would dare to say that buyers will be looking for value for their money, that will not only be manifested through location and quality of construction, interior decoration, etc, which is of course very important and must be at a high level, but that value will be based on the concept and context of the location itself.
Within our company, we pay significant attention to the quality and standards we apply during the construction process itself. We are recognized for this in the Swiss market and will apply the same quality standards to the King`s Fountain project in Serbia.
Currently, we are focused on the start of construction and the realization of the King's Fountain project. One of the basic prerequisites for any good and successful business are the people who run that business, and the entire organization that needs to follow up and implement. I am pleased to say that the formation of that team has been completed and today we have a team of people with significant local and international experience with similar projects. And not only that, the people who lead and coordinate our activities in Serbia and the region are people who share the same values on which the entire business is based, which I believe is the foundation of any long-term sustainable business.
As a company, we have long-term plans primarily for Serbia, as well as for the region of Southeast Europe, and within that we are already working on analyses of potential new projects. For understandable reasons, I cannot disclose more details at this time.
I would also like to mention at this opportunity that my company has two production plants in Switzerland that produce wooden elements for the construction of houses and apartment buildings. This is a concept that is very present in Switzerland, where wood is used extensively in construction.
In the long term, we also intend to open production facilities in Serbia and start projects for apartments and hotels made of wood. Mountain destinations are ideal for such projects, and I believe that these concepts could be very well accepted there. Within the framework of sustainable development on the one hand, as well as speed of construction on the other hand, we believe that such a concept represents significant potential for the future. This construction style closely resembles the traditional building styles in Serbia, a country rich in timber resources, and has many suitable locations to merge such structures with the environment. Hence, like Switzerland, Serbia is an optimal location for eco-friendly construction.
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"REAL ESTATE AND CONSTRUCTION - From vision to investments"
