Profitable real estate is gradually gaining popularity in Ukraine as a new way of investment. It is a space with full finishing and furniture and can have areas for the common use of all residents (swimming pool, children's rooms, sauna, barbecue, fitness club, etc.). By investing in a unit, the owner can simultaneously use it. The management company takes care of all the maintenance of the room and finding guests.
Classification of profitable real estate:
- housing stock (apartments for rent, apartment building);
- commercial real estate (hostel, hotel, apart-hotel);
- semi-commercial real estate (ownership+rent) (service apartments, condo hotel).
Main characteristics:
- Accelerates return on investment from the tenant pool, providing higher rental returns due to reduced vacancy and downtime.
- Accelerates the pace of sales by 30% and liquidity during resales. The format is less susceptible to price volatility.
- Significantly speeds up the implementation and launch of the project by attracting funds from private investors.
- The profitability of apart-hotels is 10-15% per annum. The average return on investment is 7-8 years, even with an average annual occupancy rate of 50-60%.
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