The real estate investment with the highest profitability: Premises and plots

The real estate investment with the highest profitability: Premises and plots

In addition to investing in residential real estate, there are other types of real estate investments that offer high returns for owners. If you are thinking of revaluing your savings in the most intelligent way, now is the time to invest in commercial premises due to the great profitability they offer.

Tajarat properties not only specialized in the sale and rental of residential properties. The ‘Premises and Investments’ department accompanies our clients throughout the process to find the product that offers the profitability they seek.

Do you also want to take the step? Trust our team of experts to find and design exactly the commercial property you have in mind.

Why invest in a commercial premise?

Commercial premises are a great alternative to diversify an investor’s savings. A booming business, which has exceeded other types of real estate investment in number of transactions.

At the moment, commercial premises, the sale of plots and industrial buildings have increased by around 15%, which, it is estimated, will continue to rise in the coming months.

The profitability of investing in this type of property comes from both rental and subsequent sale, assuming a higher return than other real estate assets. The risks of investing in this type of product are lower, since they also offer the possibility of adapting to the needs of customers to a greater extent than a home.

Find the place you are looking for

We accompany our clients throughout the investment process in a personalized way. We are experts in real estate and retail investments. We adapt to the needs of each client during the search and subsequent advice.

In our offices you will find a great team of technical and legal advisers who analyze customer preferences, finding the right product.

We have a wide portfolio of plots, buildings, warehouses and commercial premises of all kinds that can be consulted in the ‘Premises and Investments’ section of our website, but we also look for the ideal place if it is not yet in our bases.

There are many clients who have trusted us when making their investment. It does not matter if you do not have experience or if you need advice from a qualified professional. We are by your side to make that project you think about come true.

Do you have a business idea and you don’t know how to develop it on your own? At Blue world city islamabad we open the door to smart real estate investment to start the business of your dreams, starting with finding the location you need.

Technical and legal advice and much more

There are many customer profiles that we have worked with so far. Savers and investors, families, large catering groups, the textile and retail sector, supermarkets, small businesses, gyms, concessionaires, and all kinds of investments in plots and spaces to carry out any work activity.

But the accompaniment in the search for the perfect space is not the only service that our clients demand. The professionalism of our team goes beyond technical and legal advice.

Once the sale and purchase operation are finished, our experts can help you in the reform and design of the property to make a good conditioning or to start up the business of your dreams.

We work nationwide, managing the opening of new businesses in the most important cities of Spain. We currently have all kinds of premises and investment options in the community of Madrid, but we move to any point of the geography to offer a comprehensive service to our clients.

Now is the time to take the step that you have been considering for so long. Commercial premises are a highly valued real estate investment product, which has now become the best alternative for investors. Do not stay behind and trust the experts, to achieve the best revaluation during its use, rental or subsequent sale.

The real estate sector accounted for 10% of foreign investment in 2019

The capacity generated by a sector to attract foreign capital is one of the most reliable indicators to gauge the dynamism and efficiency of a sector.

On the other hand, in times of downturn in economic activity it is convenient to know which sectors started from solid fundamentals and which would be likely to emerge more quickly when the recovery begins. The Ministry of Economy has recently published its data for the year 2019 regarding foreign investment.

Specifically, last year of the 22.3 billion euros that came from foreign investment, 2,117 went to real estate activities, accounting for 10% of the total and being the second sector of activity that captured the highest gross investment, only behind financial activities.

Since Gilmar, we consider this data important, so we are going to reel off a little more the data that the Ministry provides us.

Disaggregated data

The 2,117 million euros of capital that foreign investors deposited in the real estate sector went mainly to the rental of real estate on their own account. Specifically, 1,259 million of the 2,117 totals.

For its part, the sale of real estate captured 451 million euros, while the subheadings of management and administration of real estate property and real estate agents captured 390 and 17 million euros in each case.

In terms of countries, the “top ten” of the nations that have invested the most in real estate activities are: Luxembourg (703 million euros), followed by the Netherlands (248 million euros), France (239 million), Italy (225 million), Germany (110 million), United Kingdom (98 million), Singapore (80 million), Mexico (54 million), Switzerland (53 million) and Ireland (43 million).

Within the so-called brick sectors, the real estate sector was the one that best maintained the rate since the building construction sector and the civil engineering sector captured 521 million euros and 171 million euros, respectively, last year.

Foreign sales

Another way to gauge the foreign appetite for the real estate sector lies in the statistics of home sales carried out by foreigners residing in Spain. During 2019, foreigners residing in Spain moved 15,400 million euros in home sales and 91,600 transactions were carried out. By nationality, those who moved the most money and operations were British followed by Moroccans, French and Germans.

Homelessness, a problem in which the real estate sector is crucial in the solution

It is estimated that around the world, around 150 million people (2% of the population) do not have a home to live in. Of all that figure, almost two million people arein developed countries.

Recently, the OECD has published a report warning that in the last decade the number of people who do not have a house to live in has grown significantly in several countries such as Australia, Chile, Great Britain, France Iceland, Ireland, Latvia, Luxembourg, Netherlands, New Zealand, Portugal or the United States.

The moment is not one of the countries where homelessness has become more accentuated, but that does not mean that it ceases to be a problem that must be addressed if it is not to worsen.

The main exceptions to the rule in the developed world are Norway and Finland, which in the same period have achieved a drastic 40% reduction in the number of homeless people.

All this with ambitious programs at the national level and with public-private collaboration between the State and the real estate sector with a crucial role in it.

Since we wanted to echo this problem and what have been the mechanisms that have been shown to be most useful to solve this problem.

What causes and who mainly suffers from homelessness?

There are several factors that have caused the number of homeless people to grow in developed economies in recent years. These include the hardening of accessibility to housing, the economic crisis, migration and failures of the institutions and bodies of justice.

But there are also individual factors and family environment such as job loss, gender violence, mental disorders or drug addiction.

All these elements mean that the phenomenon of homelessness by gender affects women to a greater extent than men, by age young people without employment and elderly people with very low incomes and by nationality, migrants.

The studies also reveal that within similar levels of poverty, having or not having a roof to live on is a key factor in favouring the reintegration of that person, being this much more feasible when there is a home than when not.

On the other hand, homelessness implies a drastic vital and health cost for the people who suffer from it. The life expectancy of a homeless person is estimated to be 30 years less than the average of the population of the country in which they live.

What measures are useful to tackle this problem?

As we noted earlier, Finland is one of the most successful countries in reducing the number of homeless people. The main innovation in his program was to replace temporary housing with long-term permanent social rental housing.

Sustained political support and coordination between ministries and levels of government has been critical to Finland’s success, continuing through the second National Homeless Program (PAAVO II) and the subsequent Action Plan for the Homeless in Finland. 2016-2019.

The action plan aims to prevent social exclusion by incorporating the Housing First approach as a national policy; in practice, this means ensuring that housing is insured, provided that an individual enters the social service system.

Similar is the case of Norway, only in its case the Government has placed more emphasis on preventing situations of people becoming homeless by reducing and monitoring evictions and the situation of people who have already become homeless, ensuring that move from temporary housing situations to perpetual housing.

Five ministries have coordinated to ensure the success of this plan and also the State with companies in the real estate sector to promote policies to improve the quality of homes, neighbourhood’s and local planning of construction and rental of homes.

 

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