Tourist real estate: prospects and opportunities for investors

Tourist real estate is an investment asset that allows investors to receive attractive financial returns. Find out more about what tourism real estate is and the challenges of investing in this area, as well as the prospects for the tourism property market in 2024.

Real estate is not only a place to live, but also an investment asset that allows you to safely store money, receive passive income and increase capital. At the same time, tourist properties offer investors greater returns due to seasonal price increases. This type of investment also contributes to the development of the tourism sector.

What prospects and opportunities does the tourism real estate market offer for investors? Details in our material.

What is a tourist property?

Tourist real estate covers facilities designed to serve tourists. The most common types of tourist real estate include:

• Tourist accommodation establishments which include hotels, hostels, resort villas, apart-hotels, serviced apartments, tourist cruise ships, campsites and other tourist accommodations.
• Shopping centers and theme parks.
• Resorts are facilities that offer a variety of services to tourists, such as private beaches, swimming pools and restaurants.
• Heritage and cultural attractions – purchase and reconstruction of heritage and cultural sites (palaces, castles, temples, etc.) for excursion services for tourists.

Benefits of investing in tourism properties

Investing money in tourist real estate has many advantages, the main ones of which are:

• Regular profit generation – tourist real estate is an investment asset that ensures sustainable profit generation in the long term. Due to the high demand for housing for tourists, the investor will be able to receive regular dividends from renting out real estate.
• Diversification of the investment portfolio, as well as reducing financial risks. Additionally, investing in multiple tourist areas can increase the chances of achieving better financial returns.
• Increasing property values ​​- this means that investors will be able to eventually sell the property for a large profit after several years of ownership or use it as an asset.
• Personal use of real estate – in addition to renting out, tourist facilities can be used for your own recreation.
• Management control – investors can independently control the management of their own property or hire a special company for this. This gives them the flexibility to achieve their own investment goals.

Investments in tourist real estate are becoming increasingly attractive to businesses and private investors. This sector provides many opportunities to make a profit and provide a stable source of income in the future.

Increasing accessibility to travel and more people traveling abroad are driving demand for tourism properties around the world. Investing in tourism real estate is a profitable investment as tourism is one of the most profitable industries in the world.

The main advantages of investing in tourist real estate:

• Constant demand market: Tourism is a stable sector of the economy as people constantly travel and look for comfortable accommodation during their trips.
• Rising property prices: Tourist cities and resort regions usually have increased property prices due to constant demand and limited supply.
• High rental yield: investing in tourist real estate allows you to receive additional income through renting housing or commercial premises to tourists.
• Portfolio diversification: investing in tourist real estate allows owners to distribute risks and reduce possible losses.
• Possibility of own use: investors may also have the opportunity to use the property during their holidays or vacations.

Before implementing projects, Anta Group takes into account all liquidity indicators and creates real estate in areas that are most promising in terms of successful investments. For example, we are now building a modern 5-star hotel complex with a unique infrastructure – ANTA Residence Canggu on the island of Bali. We have calculated that it is possible to return your investment when renting out real estate in 5-6 years.

The HASAN BEY RESIDENCE business class complex project in Antalya is also currently being implemented. The estimated payback for daily rental is 9.8% per annum. Also a profitable solution for investment is our comfort class complex HMG GOLD RESIDENCE . These are 20 apartments with high-quality finishing, in the historical center of Antalya and 3 minutes from the Mediterranean Sea. The estimated payback for daily rental is 9.8% per annum.

We chose these places not by chance, because there is good seasonality, a constant flow of tourists, and an attractive investment climate. These factors provide our investors with the most favorable conditions for receiving investment income. Türkiye and Bali are the most popular tourist destinations in the world. The annual influx of tourists ensures a stable demand for real estate and hotel services, which creates prospects for successful business operation.

What are the challenges of investing in tourism real estate?

In addition to the advantages, investing in tourist real estate has certain risks that should also be taken into account:

• Instability of demand – the success of investments in the tourism market depends on tourism demand, which is usually influenced by factors such as global trends, epidemics and economic crises. Therefore, investors should be prepared for market instability.
• Legislative restrictions – national governments may introduce changes to legislation that affect the ability of investors to rent out their properties or build new projects. Investors must comply with all local regulations and laws.
• Competition – the tourism market can be overcrowded with properties available for rent. Therefore, before investing, you should study the market in detail and improve the quality of services to attract more tourists.

Prospects for the tourism real estate market

The tourist real estate market is very dynamic, because it is usually influenced by many factors, below are several important forecasts for investors:

• Focus on nature – tourists are increasingly interested in untouched areas. Demand for eco-tourism sites and resorts is only expected to grow. Investors can take advantage of this trend by building properties that meet these needs.
• The importance of infrastructure development – real estate located in a region with a higher level of infrastructure development will be in greater demand among tourists.
• Development of research and cultural tourism – it is expected that in the coming years research and cultural tourism will be most popular.
• Increasing demand for domestic tourism – experts predict that as a result of the Covid-19 pandemic and an increase in local military conflicts, in the future tourists will also focus on domestic tourism, which may lead to an increase in demand for real estate.

Which countries’ tourism properties should you invest in in 2024?

  Before purchasing a tourist property, you need to analyze the political and economic situation in the country you choose to invest your savings. It is also important to take into account the stages and pace of development of infrastructure facilities, the availability of high-quality transport links, tourist flow and seasonality.

Currently, one of the most promising markets for tourism real estate is Turkey, because the country tops the ranking among countries with a high annual growth rate of housing costs and is one of the five most visited countries in the world. Also, according to forecasts, in the near future the tourist flow from European countries and from developed countries of the Arab world will increase significantly in Turkey. This means that the investment attractiveness of the state will increase.

Examples of profitable investment offers in Turkey on a turnkey basis:

• Business class complex HASAN BEY RESIDENCE , Antalya, Turkey . The cost of apartments with an area of ​​53 m² (1 bedroom, 1 living room with kitchen, 1 bathroom) is 160,000 €. Duplex layout 4+1 (4 bedrooms, 1 living room with kitchen, 2 bathrooms) – area from 126 m², cost from 307,000 €. The estimated payback for daily rental is 9.8% per annum.
• Comfort class complex HMG GOLD RESIDENCE , Antalya, Turkey . A complex of 20 apartments with high-quality business class finishing, in the historical center of Antalya and 3 minutes from the Mediterranean Sea. Layout 2+1 (2 bedrooms, 1 living room with kitchen, 1 bathroom, 2 balconies) – area 70 m², price from 169,000 €. The estimated payback for daily rental is 9.8% per annum.

Another promising area is the Indonesian real estate market, including on the island of Bali. The place is as cosmopolitan, multicultural, multifaceted and popularized as possible. These factors provide the most favorable conditions for obtaining income from investments, and there is a steady increase in foreign investment every year.

Examples of profitable investment offers:

• Premium class apartments in a modern 5-star hotel complex with unique infrastructure – ANTA Residence Canggu , Canggu, Bali island, Indonesia . The price starts from $135,000 for a studio apartment with an area of ​​38 m². There are also deluxe class housing (costing from $227,000 and an area of ​​68 m²) and luxury (from $265,000, an area of ​​80 m²). You can return your investment when renting out real estate in 5-6 years.

Investing in tourism properties can be a profitable option for investors. However, an investor should be aware of the potential issues and conduct careful analysis before investing to ensure the success of their investment in this sector.