As we all know Real Estate is the best and largest asset class in the world and most preffered option when it comes to investing. The major aspect of Real Estate which attracts Investor into it is it's Rental Yeild which can go upto 30% if invested in highly demanded real estate. So here we will look at the one of the highest rentel yeilding assets as an Investment opportunity in India for those who are looking to make fortune through Real Estate Investing.
Holiday Rentals , Vacation Rentals , B&B rentals or Short term rentals choose the term which ever you like the most as the objective is same for all. In order to see the projected growth in such investment let's understand the STR revolution.
It's the changing nature of how people wish to spend their money. World economy is growing and more and more people are becoming more prosperous. This newly prosperous people value experience rather material things and travel is the most desired experience for everyone. The travel and tourism industry is growing at a rate of 30% CAGR and acount more than 7.6 trillion globally.
I current scenario travellers are priortizing on more personalised spaces rather staying in a standardize hotel with other odd 100 guest. Travellers are also realising that renting a entire villa or Apartment is more convinient and fun experience while traveling with kids , family and friends. The major factor of this sector growing so fast is basically tech platform such as Airbnb allows owners and tenants both convinience and confidence.
For Investors this gives an opportunity to invest in this new exciting asset class to get into easily as it's inexpensive incomparison with buying a hotel or a guest house as it's just a home or an apartment at a demanding holiday destination. This can also be diversified and can be in multiple destinations.
The usual rental yeild of such properties can vary from 6% and go upto 30% depends upon the location type of property and management services you are offering.
Real Estate Investors are looking into this asset class as unique high return asset in their porfolio and good capital gains are also expected in longer run.
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