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? Let AHS answer this question.
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 2 forms: leasing to a third party for business operations or self-employment.
In which, the profits from business activities will be divided according to the agreement between the parties. In our country, the form of leasing business operations to a third party is more popular.
Current types of resort real estate
Hillside Villa
Planned and built on a hill, surrounded by mountains and hills. Hillside villas are designed to take advantage of the wide and green space of nature as a highlight. Located in the middle or on the edge of the hills, or can also be built on the hillside with a view of the surrounding sea.
River and lake island villas
Unlike hill and mountain villas, river and lake villas are often built in ecological urban areas, offering exclusive luxury privileges to customers. This type of product has a modern, eye-catching design style but is still in harmony with nature thanks to taking nature as the main criterion.
Beach villa
Beach villas are often designed to be extremely modern and luxurious, located on pristine and beautiful beaches. With the habit of going to the beach, this is a type of resort real estate with potential for tourism development and high profit opportunities.
Condotel hotel apartment
Condotel is a perfect resort real estate when combining "Condo" and "Hotel" which means apartment and hotel. Condotel has all the amenities of an apartment such as kitchen, dining room, living room, bedroom, toilet... as well as bringing a great experience of a resort hotel. Most Condotels are built in big cities or tourist areas, resorts. For Condotel hotel apartments, the owner has full rights to use, can use for vacation or rent, but Condotel needs to be handed over to the management and operation unit to carry out the rental to tourists and share the profits.
Shophouse
Shophouse is a type of real estate that is quite familiar to Vietnamese people. Currently, most real estate projects from urban areas to resorts have this product line. This type of product is highly appreciated for its dual function: both for living and for business activities.
Normally, shophouses are planned on strategic roads of the project with the ability to access abundant customers with high shopping needs. Therefore, investors who "invest" in shophouses will receive a stable monthly profit without spending much effort to find customers.
Standards for evaluating resort real estate
Up to 100%, the sellers of resort real estate do not know about it because they cannot understand all the details of the impact to be able to make customers have a safe, secure and profitable investment. Some key details such as:
- Geographical location: A characteristic to promote and develop resort real estate includes 3 factors: Infrastructure, Natural conditions and surrounding amenities. Thus, if based on all these factors, there are very few real estate products that meet all 3 of these factors. For example: Da Nang, Phu Quoc, Sapa, Nha Trang, Hoi An, Da Lat, Hue
- Architecture: to develop resort real estate, architecture and real estate managers are needed.
- Market: Customers' expected factors for resort real estate investment: Cash flow, Capital appreciation and Liquidity.
Investment potential compared to other types of real estate
In terms of investment potential in popular real estate types, resort villas are considered to have the most potential.
According to statistics from the Real Estate Association, the investment demand for townhouses and apartments currently accounts for only 3-6%, for offices for rent it is 8-10%; and for beach villas it is 10-16%.
Meanwhile, with many loan commitment programs plus limited supply, strong price increase potential, Beach Villas are becoming a "hot" commodity that every investor wants to own. In Vietnam today, the price to buy Beach Villas is much lower than in other countries in the region.
Therefore, it is inevitable that many foreign investors will appear in the Vietnamese beach villa market and push up the price of this type of product. Currently, most of the beach villa projects in Vietnam are being built in the most beautiful locations of coastal tourist cities such as Nha Trang, Da Nang, Phu Quoc, etc., attracting many domestic and foreign tourists to come and relax.
The project has complete legal procedures.
Resort real estate is in a booming period, but not all projects meet the State's regulations on legal procedures. According to the provisions of Clause 1, Article 55 of the Law on Real Estate Business No. 66/2014/QH13 dated November 25, 2014 and Point b, Clause 2, Article 19 of Decree No. 99/2015/ND-CP dated October 20, 2015 of the Government, investors of commercial housing projects must send a document to the Department of Construction where the housing is located, along with documents proving that the housing is formed in the future and is eligible for sale.
Real estate experts also advise that buyers should not be attracted by beautiful locations and offers of high profitability, but ignore the legal aspects of the project they intend to invest in. Resort real estate is often a valuable asset, so buyers must be more careful to avoid legal risks. When investors do not meet the legal requirements, it will affect the rights of future buyers.
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.
With outstanding development potential, resort real estate will certainly be a profitable investment channel, bringing huge monthly income to investors.
