In Adriatic Insider – Episode 1, János Hidasi (COO & Advisory Director, Adriatic Advisors) speaks with Péter Horváth (Real Estate Director, SKR Holding) about what investors and lenders actually check early—before a project becomes bankable.

“On paper” is not the same as “on site”

One of the most recurring (and expensive) surprises in the region sits in basic infrastructure—especially utilities capacity. A project can be legally permitted in theory, while the local grid, water supply, or road access is not realistically scalable to support modern operations.

The key message: infrastructure availability on paper is not infrastructure certainty in practice. Decision-grade underwriting requires verifying capacity, responsibilities, and written commitments, not assumptions.

The market has matured—and due diligence evolved with it

Croatia has improved in several institutional dimensions over the past decade: better legal clarity, more transparent registries, and stronger alignment with EU frameworks. Financing comfort has also improved as lenders became more familiar with underwriting real estate projects.

At the same time, execution has become more complex. Permitting—especially for larger or sensitive projects—requires more documentation, more stakeholder coordination, and more realistic timelines. In other words, legal security improved, but project preparation became more technically demanding.

The investor checklist: three questions that come up early

A useful way to describe today’s capital is that it’s less speculative and more structured. The questions that surface early typically include:

1) What is the real permitting roadmap?

It is no longer enough to say “zoning allows development.” Investors want a permitting plan that reflects reality: steps, dependencies, timing, and the true critical path.

2) Is there infrastructure certainty?

Utilities, water, and access are not “nice-to-have.” They determine feasibility, project phasing, operating costs, and sometimes even whether the concept is possible.

3) What is the exit logic?

Exit planning is not something to “figure out later.” Investors (and lenders) increasingly expect clarity on the eventual buyer/operator logic early—especially in hospitality-led developments.

Timeline reality: pre-development can take years

Another point that is often underestimated—especially by first-time entrants—is the length and complexity of pre-development. In many cases, Croatia requires prolonged coordination across municipalities, utilities, designers, and environmental processes.

Pre-development is not paperwork: it is the phase where feasibility is refined and risks become visible. If that phase is rushed, surprises later become expensive.

A blunt question that helps: “What would you put first in the term sheet?”

The episode includes a practical, high-signal question: What would be the first sentence you’d put into a term sheet?

It’s a simple way to pressure-test priorities: before debating upside, ensure the fundamentals (permits, infrastructure, enforceable commitments, and exit logic) are aligned. This is what separates a deal that looks good on slides from a deal that can actually be executed.

Why it’s worth watching

If you work across SEE/CEE, you’ll recognise the pattern: projects rarely fail because “the idea wasn’t good.” They fail because deliverability was assumed, not verified. This conversation is a compact, decision-grade reminder of where the real risks sit and what questions reduce uncertainty early.

Watch the full conversation here: On Paper vs. On Site: The Hidden Risks in Croatian Real Estate Development with Peter Horvath

Listen on Spotify: https://open.spotify.com/show/5mKnFMO6z4Zrnc25Ka2IJU?si=deN1SQ1nR9uEIzsCBH23-Q