The new-era of waterfront business

The market valuation

Amidst the challenges posed by climate change and soaring real estate prices, the global trend towards waterfront living has led to the emergence of a unique market niche – floating houses. This novel concept is gaining significant traction, evident in the current floating-house market's valuation of USD 1.5 billion in 2023, projected to surge to USD 3.7 billion by 2030, showcasing a remarkable compound annual growth rate of 17.7 per cent from 2023 to 2030.

Image credit: Oasis Meu; Amor.

Recent developments in Croatia highlight the growing momentum in the floating house market. Oasis Meu, a maritime start-up based in Split, introduced Amor, a modern floating apartment powered by solar energy. This two-story dwelling accommodates 2+2 persons, offering a 360° panoramic view from the upper deck. With amenities like a saloon, fully equipped kitchen, bathroom, and a bow deck featuring a jacuzzi, the model aims to provide the freedom of a ship with the comforts of a house. This innovative concept opens new possibilities for hotels, marinas, and resorts, expanding accommodation options in marinas, anchoring spots, and bays.

The visionary designs of these models, with its oval shape and navigable features, stands out in a market often characterized by immobile and unimaginatively designed structures. As the owner, Ms. Maja Regjo, describes it, ' OASIS MEU’s new models of floating apartments' is not only navigable but also exceptionally attractive, representing a unique offering in the market. Ms. Regjo adds that these unique waterfront residences blend traditional Croatian shipbuilding methods with contemporary design, crafting a distinctive living environment. Essentially, with Oasis Meu floating apartments, you can immerse yourself in Croatia's cultural heritage and legacy, all while indulging in top-tier amenities and contemporary comforts.

Image credit: Oasis Meu; Amor

The new business model

The leasing market for floating houses is on the rise, driven by the desire for unique living experiences, escalating housing costs, and the popularity of short-term rentals.

Offering floating apartments on platforms like Airbnb and Booking.com presents several distinct advantages for (inter)national tourists. These unique accommodations offer an unforgettable experience, drawing in travellers seeking something beyond conventional hotel stays. Additionally, the mobility of floating apartments allows for diverse and picturesque locations, granting guests the opportunity to explore different waterfront vistas. Moreover, the fusion of traditional craftsmanship with modern amenities appeals to those craving cultural immersion without sacrificing comfort. Furthermore, the flexibility in pricing and booking options on platforms like Airbnb and Booking.com cater to a wide range of budgets and preferences, making these floating apartments accessible to a broad spectrum of travellers.

Overall, leveraging these platforms for rental services capitalizes on the allure of distinctive accommodation experiences, attracting both local and international tourists to indulge in the enchanting charm of floating living spaces.

Floating apartments are classified as pleasure crafts by the lACS member Shipping Register, equipped with their own propulsion systems. Therefore, no additional permits are required, as they function similarly to other ships and vessels. Like conventional vessels such as catamarans and yachts moored in marinas, bays, and anchorages, commercial berthing is the sole requirement. Should you desire to relocate your dwelling, short-distance navigation necessitates only a basic license, while experienced staff can facilitate longer journeys.

Comparatively, floating apartments are less capital-intensive than traditional hotels, boasting simpler operations and maintenance. It offers a straightforward launch as a new business venture with the flexibility to adapt usage and location, enjoying reduced competition within this emerging market niche.

Who wouldn't be enticed by the idea of vacationing in a water-front floating apartment, especially considering the high cost of waterfront homeownership? Investing in this rapidly expanding market niche sooner rather than later seems prudent.