With the development of tourism in recent years, resort real estate has emerged as a new investment trend for individual investors with little capital. However, not many people understand what resort real estate is? And is this an easy-to-profit investment channel? If you want to try your hand at resort real estate, don't miss this article.
What is resort real estate?
Resort real estate is a real estate model built in resorts and tourist areas, including hillside villas, beach villas, hotel apartments, mini hotels, shophouses, etc., then resold to individuals and organizations with investment needs.
Resort real estate is built to serve tourists, providing accommodation and commercial services... bringing interesting experiences and attractive amenities to tourists. This real estate model offers investors two forms: leasing to a third party for business operations or operating on their own. In which, the profits from business operations will be divided according to the agreement between the parties. In our country, the form of leasing to a third party for business operations is more popular.
Types of resort real estate investment
Hillside Villa
Hillside villas are commonly found in highland areas located on hillsides with panoramic views such as Tam Dao, Sapa, Da Lat... This type mainly takes advantage of the green space of the mountains and forests and the cool air that surrounds them to create a highlight for the entire product. For hillside villas, solid construction and unique design are required to attract customers.
Beach villa
Among the types of resort real estate, beach villas are considered the most typical and high-class type. Possessing a prime location within coastal resort projects with luxurious and modern design, this type possesses great profit potential with high liquidity combined with other business models such as AirBnB, rental..., bring huge income every year to investors.
Besides, beach villas are also expensive assets, perfectly meeting the needs of health care and resort tourism, while increasing property value and demonstrating the class of the upper class. Nowadays, beach villas are not only for relaxation but also contribute to the health care of the owner by owning a system of green landscapes, trees and a comprehensive chain of amenities.
Condotel
The name Condotel partly speaks of the luxury and class of the resort real estate product. It is the perfect combination between the form of an apartment and a hotel room. Condotel gives customers a cozy, close feeling like in their own home with a full living room, bedroom, bathroom, kitchen with full amenities and modernity. Condotel attracts families to stay during long vacations, allowing them to take care of their family in the most complete way, without disrupting daily life...
Should I invest in a resort villa?
Resort real estate is often suitable for customers/investors with high income, idle capital, and no rush. It will promote the attractiveness of average liquidity from the 5th year onwards. Once this product line is in motion, it will always be stable for a long time and profits will increase little by little.
Compared to depositing in the bank, investing in a resort villa will avoid inflation and currency depreciation according to the market economy. Vietnam is an extremely attractive tourist destination for international tourists, the number of tourists is increasing every year, so you should get ahead of the trend to reap long-term profits.
Resort real estate risks
Resort real estate in Vietnam is still quite young compared to developing countries that have existed for more than 50 years. According to investopedia.com, it took nearly 10 years for resort real estate in the US for customers to understand the products, business types and opportunities.
The Vietnamese market has only been around for this product for over 3 years. However, information technology and the internet make it easier to learn and connect. The low liquidity of resort real estate is the weakness of this type, because it is often difficult to transfer this type and is not for investors with small capital or just starting to invest.
Choosing which form of vacation or investment you need to consider the benefits you get. Of course, finding a form that suits your budget and investment orientation is really not easy. So please research carefully before making your choice. If you need any more information, please contact AHS immediately.
