The increasing number of upper class, the demand for resorts is becoming more and more popular, so resort real estate can be said to be a "lucrative" market that many investors are interested in.
If you intend to invest in resort real estate, it is necessary to find out related information. So what is resort real estate? What are the real estate investment opportunities? To answer the above questions, please refer to the article below.
What is real estate?
Before learning what resort real estate is, you need to understand the concept of real estate. Currently, there are mainly two types of assets: real estate and personal property. However, the specific definition of real estate varies between countries.
According to Article 107 of the Civil Code of the Socialist Republic of Vietnam 2015, real estate includes: Land; Houses, constructions attached to land; Other assets attached to land, houses, constructions; Other assets as prescribed by law. Thus, it can be simply understood that real estate is immovable property, including land and assets attached to land, inseparable and located by land.
So, what is resort real estate?
Resort real estate is considered as a second home, a type of real estate used for the main purpose of resort including: hotel apartments (condotel); Minihotel; resort villas by the sea, river, lake, hill; Shophouse/Shoptel serving tourism; resort urban areas, expanded old quarters, townhouses, etc. built mainly in tourist areas.
Resort real estate investment trends
The trend of investors "hunting" for coastal villas to invest in vacationing with their families or renting out has been a booming trend recently, especially with a steady growth rate every year.
The boom in Vietnam's coastal resort real estate market is fueled by factors such as improved infrastructure, strong growth in international and domestic tourists, increasingly diverse and high-quality investment products, and low risks when investing in resort villas.
The demand of foreign corporations is mainly to buy hotels for operation, focusing on tourist attractions such as Hanoi, Ho Chi Minh City, Nha Trang, Da Nang, Quang Ninh. Or emerging localities such as Ninh Thuan, Quy Nhon (Binh Dinh), Van Phong (Khanh Hoa), Phu Yen, Phu Quoc because these areas have large land funds, creating added value and high competitive advantages over time.
What should you pay attention to when investing in resort real estate?
Legal issue
Permanent red books are only issued for cemetery land and residential land. Most resort real estate built on service and commercial land only has a useful life of 50 years. Legal issues cause many risks in operations and management.
Cocobay Da Nang found it difficult to pay Condotel profits with initial commitments. The reason given by the Investor is that the business has recently encountered many incomplete legal problems.
Liquidity with real estate products
In addition to legal issues, the liquidity of resort real estate products is still a big question mark. For example, Condotel hotel apartments have been pushed up to 85-100 million/m2. This price does not attract investors to buy and resell for profit.
Choosing which form of vacation or investment you need to consider the benefits you get. Although it is not easy, if you want advice or help, contact AHS to find the most suitable option. Hopefully the above article of AHS has given you the necessary knowledge.
