To make the most of your money, buying and renovating luxury properties is considered one of the best investments today. This is due to the high demand within this real estate segment and the levels of profitability that this business can provide.
Furthermore, this niche market has shown great stability. Proof of this is the growth data for the luxury real estate market in 2020 and 2021, years of great economic instability, due to the COVID-19 pandemic.
Therefore, for any investor looking for profitable businesses, the acquisition of luxury homes is seen as one of the best investments.
4 Reasons why luxury real estate is one of the best investments
In Portugal, the purchase of luxury properties with a view to rehabilitation and sale has been in great demand. Buying a luxury home and making some improvements to increase its value before selling is a strategy adopted by many investors.
We have listed 4 reasons that place this business among the best investments .
1. Investment security
In recent years, luxury real estate has been considered a safe and stable option to invest. Since the chances of appreciation are high, in the medium and long term, this is one of the best investments, attracting interested parties both domestically and abroad.
2. Stability of the luxury market
The potential profit that a premium segment property can provide is a very appealing factor.
The sector’s growth data, even during the pandemic period, helps to prove the stability of this market. The emergence of other adverse circumstances, such as war, has not, so far, had a major impact on the demand for this type of housing.
3. Attracting international investment
For foreign buyers, Portugal is one of the countries that offers the best investments in this area. The safety, climate and quality of life found here are the main reasons for this.
This interest is proven by international rankings , which place our country on the list of the best for investing in high-standard housing.
4. Long-term profitability
In addition to the value of the luxury property, as an asset, there is the possibility of making it profitable over an extended period.
When entering into a lease contract, the monthly rent charged to tenants can be high, considering the location and amenities offered by your property. This is another possibility to maximize the return on your investment.
Tips for making luxury properties profitable
The best investments are not just those that offer the greatest immediate profit. There are other options for getting the most out of a luxury home. We leave you with some suggestions to make the most of your investment.
1. Rent the property for a while
Did you buy a luxury home as an investment and have no urgency to sell? Obtaining a monthly income from a property you have invested in can be a good way to make it profitable for a longer period of time. You can choose between entering into a rental contract for 1 or more years, or just for a few months.
2. Carry out improvement works before selling
This option pays off, especially in older luxury homes . Maintaining the traces of the original architecture, you can transform the interior of some rooms to make them more modern, comfortable and appealing to buyers.
A luxury property that has a set of features aligned with the needs and preferences of current investors can be sold at a higher value.
3. Entrust this business to experts
The premium real estate segment has some specific requirements and it can pay to discuss everything that this type of business involves with someone who knows. A luxury real estate consultant with experience in the market may be the best bet to ensure that your investment provides you with the expected return.
DS PRIVATE has been operating in the luxury real estate market for years. In addition to real estate mediation services, we also offer support in credit intermediation and in the construction and renovation of properties. Explore our blog and learn more about the possibilities that the luxury segment has to offer you.
