top of page

Niches for real estate investors


High yielding real estate investments

Content:

Investments in residential sector


This article focuses on little-known opportunities for investing in real estate. For the basis we takes the market of Spain, and particularly Marbella, one of the world's famous resorts, where the real estate market is quite well developed and demanded.

However, due to the very high volatility, investing into standard properties: villas and apartments is not the most profitable option. Therefore, the benefit is to find only those niches , where there is uniqueness and there is no competition on the market. There are such niches in any market, you just need to see them and find a guide who knows these niches. Acting as an investor, you could get a highly profitable business. Only 3 rules work in these niches: uniqueness, uniqueness and uniqueness again. In everything.


Investment in residential sector Villas and apartments


Luxury real esate investment in Spain

If we summarize the main topic, the niches for business are where there are unique ideas and the very meaning of uniqueness, no matter what area of business it refers to. Since the topic of the article is real estate, we focus on it.

The market offers a great number of real estate properties, extolling the benefits of each and showing it from the most advantageous side.


Numerous surveys of the leading real estate agencies in the market vied with each other offering to invest in new developments and pay attention to the existing housing. They also show how profitable it is to buy real estate on the coast, considering it as an investment in the future.


The basis for this is the statistics of buying and selling. Is it actually true, in terms of the benefits to the buyer investor? Not really!

Market volatility is very high. What do all of these figures in the reporting agencies reflect? They show the number of transactions in the market. And no more than that. But are all these transactions really profitable investments? It is analytics skilfully hides, leaving the consumer with a beautiful picture, elaborately drawn by marketing experts.


What properties are in fact of interest to the buyer? Only the ones where he is able to get a high rate of return when selling. Almost half of all the real estates in the resort are purchased for resale or for making profit from leasing. In the article we would be interested in this type of real estate. Where is a high margin of profit? Not in the median real estate, or not in those properties that are being actively promoted in the market. Sales of the majority of properties are aimed at the final client. He buys a home for himself, for summer vacations or permanent residence. All the rest is just tricks on the market.


A high margin exists only if there is a unique character to the property. There are not many palaces and no flaming birds fly in flocks. Therefore, profitable investments have to be generated, they are not available on the market in the public domain. Investors should look for professionals on the market, who are able to offer exactly that kind of uniqueness.


Over many years of work in the real estate industry, precisely in the luxury industry, enormous experience comes. The niche is only in the ultra luxury property. This category of real estate in its own right requires a special touch in everything. For a property to be classified as ultra luxury, everything has to be special: location, architecture, interior design and landscaping. But that is not all. Big properties need maintenance. Owners of these properties do not want to have the headaches of problems resulting from, for example, small repairs, defective electrics and air conditioning, or faulty plumbing.


Luxury villas in Marbella

Large houses need to be maintained, the garden needs to be in perfect condition. And much more. If these issues are handled comprehensively, we would have this category of ultra luxury property, and the property itself can be classified as a collectible asset, rather than the stereotype of the so-called "luxury real estate" that is prevalent on the market.


Real estate of this category is not widely represented on the market. It requires an outstanding talent of an architect and a designer, it is subject to special criteria. For those who would like to know more about it, we advise to refer to our article here.

The rate of return in this niche can be as high as 100% or higher.

Investment in commercial sector Restaurants and boutique hotels


Luxury real esate projects in Spain

Many people think there are so many restaurants and hotels in the world already that it hardly makes sense to invest in any new ones. However, this is far from the case. At the very beginning of this article, we spoke about 3 criteria that defines a niche investment. Those 3 criteria are: uniqueness, uniqueness, and uniqueness again. If you combine this with a low cost of implementation, then that's exactly what we are looking for.


Restaurants. If we are talking about restaurants, are there so many iconic places that attract tourists from all over the world? The tourism sector is what is fundamental to the success of restaurant type of business.

Basically, the main challenge, which is aimed at European restaurateurs, they see monotonous: tasty and preferably inexpensive menu, proximity to tourist centers and places with a high traffic. In Europe very few people think about the design of the restaurant. However, this is one of the most important criteria for brand identity. A unique restaurant concept is capable of turning the market upside down so as to generate a sufficient flow of tourists. It all depends on the idea that t is able to turn the restaurant into a pilgrimage center.


Luxury property in Marbella

We have written about it enough already. A great example is one of our ideas with the restaurant "ICE", the concept which works perfectly for the southern regions. You can read more about it here.


Another example of a unique idea is one of the projects we've worked on that goes by the name of Four Seasons.

Imagine that we set ourselves the task to surprise the audience so that once they see it they will not believe in such a transformation of space, when everyone in the hall will see the change of seasons. And dramatically, in 30-40 seconds! Sounds like Hollywood, doesn't it? "This kind of thing can only happen on TV. In real life, impossible!" Is that what you think now?


What would you say if you found out that it could happen not just once, but, say, four times a year? There would be no need to rebuild the interior, no need to invest extra money. Everything will happen automatically.


We would have four special evenings a year when the whole restaurant would be 100% full. It is on these days that these transformations will take place. And that means an incredible gift is prepared for the owners in order to attract clientele. And it's not like that anywhere else in the world! You see, again uniqueness and again nowhere else in the world. Can you imagine what kind of PR can be done on this.


We will not show you any pictures here, not to reveal the intrigue and surprise investors personally, demonstrating the project as a whole. We will limit ourselves to a description, otherwise the know-how is revealed. Even in this case, to do such a project only a select few can do, and to make such a project also profitable, under the power of a few, including us.

We assure you that our investor has never seen anything like this. Amazement and delighted shock him guaranteed!


It is possible to demonstrate all the seasons in one (!) Evening to special guests of a restaurant closed for special services, because the same 30-40 seconds are needed for full transformation.

You can imagine when during 3-4 hours spent at the table the whole room suddenly shifted from summer to autumn and then there will be a real winter with a Christmas tree.


Do not think that all this will just happen on the banal plasma screens, due to the light and graphics. Not at all! Everything will happen really, no screens. The technique we use to create the effects is unique and can't be found anywhere else in the world, though... almost nowhere. But this intrigue you can consider later on your own.


We will not even describe such an unusual technique. We can only say that in such a form and with such a concept the restaurant will be really unique. As long as someone does not dare to repeat the idea, it will remain one of a kind.


What gives us such an idea, except having the most unusual restaurant to attract customers? The opportunity to further develop the business, but already on a franchise basis, to receive passive income from attracting partners in different parts of the world.


Such ideas do not occur every day, they are nurtured for years, created in detail, to then appear in all their splendor.

The concept of the restaurant, in addition to the unusual interior, can be expanded. During the daytime it's a democratic place, in essence a local landmark, but in special evenings we can turn it into an exclusive Michelin-starred place by inviting the titled chef and presenting the restaurant as a luxurious evening room with candles on the table, tablecloths on the floor and well trained waiters.


Here we can have a real gastronomic spectacle when:

* each dish has a unique creation story, its own narrative and its own intrigue;

* each dish is accompanied by specially selected music;

* each guest is exceptional.

As the seasons change, so must the cuisine. This is another magnet for customers. Add the local flavor of Spanish cuisine, elevated to the rank of author's cuisine, and we get a real attraction of the coast.

Can't wait to see what it's all about? Genius ideas can't be revealed to the world, otherwise they would cease to be unique.


Luxury interior design in Marbella

All of these projects also belong to the ultra luxury category.

As for the boutique hotels, these investments are increasingly in demand. However, in the first place again the uniqueness comes out. Our project of this boutique hotel "Celebrities" is one of the designs that meets all the necessary criteria.

You could read more about it here.


Investments in tourism


Investment in luxury real esate

Investment Club designed the project of a unique park of music fountains and marble mosaics, there is no match in the world neither by the idea of implementation, nor by the level of design. Special attention in the implementation of this project is given to the so-called "depressed areas", where the level of tourism is either zero and there are no local places of interest, or the tourist season strongly depends on seasons.

Read our article specifically devoted to this issue, and much will become very clear.

The profitability of such a project belongs to the highly profitable investments.


Investment in interior decoration



This particular topic is included for a reason in this article. Talking about ultra luxury, a logical question may arise. High-class interiors are very expensive, they require enormous investment. Does it really make sense to invest in that?


The answer is simple: it makes sense if we are able to get ultra luxury at an affordable price. We don't have to think it's impossible. The same universally accepted stereotypes are working here. Since others are not doing it, it doesn't make sense and it's not commercially viable. However, this is not the case.


We are talking about the niche factories in Southeast Asia serving the local elite: the billionaires and multi-millionaires of China, Singapore, Taiwan and Hong Kong. These factories are not on the market, and there is no need to promote them, they are always very busy, getting orders from exclusive agencies and luxury developers. Such factories are able to manufacture the products of the level and quality envied by the furniture industry in Italy.


At the same time, the ratio of prices with Europe is from ½ to 1/10 of the prices in Italy. In addition, many decorative items are impossible to produce with Italian artisans.

This is the know-how of the Investment Club.


What does it do for investment projects? A sharp decrease of the decorating cost, while maintaining a high level. This is what defines the ultra luxury category.




2 views
bottom of page