What is the most profitable real estate to invest in?

Real estate investments are one of the best ways to invest money, being a physical good, that can always be sold, personally used, or rented. Investing in properties is probably one of the most known ways to multiply or secure your money and is generally seen as not a really demanding thing to do.

However, in reality, the properties that earn the most money are the ones you really should spend some time looking for. It is true that it may not be the hardest task to make a profit on property investment, but if you want to really make all the efforts worth it, the property you invest in must be strategically chosen.

Luxury Properties

Luxury properties are a niche in real estate and do not attract many customers, but the ones lured by the offers certainly do have resources and are willing to pay extra for additional comfort. Not many people can afford luxury properties, so investing in them is quite challenging; they require much more attention to details, amenities, and the whole neighborhood around the place.

While looking for properties suitable for the investment, it is highly recommended to look for places in well-known, exclusive locations, either in city centers in big metropolises (most known premium property markets are in Dubai, New York, or London) or in neighborhoods solely filled with other premium houses.

This market is exceptionally demanding, and while designing and creating premium living properties every detail must be looked at multiple times, and many unusual solutions and amenities must be taken into account and applied to meet clients’ needs. Fortunately, both the money after completing the investment and the opportunity to work in such a unique niche are definitely worth the hustle.

Commercial properties in areas with high foot traffic

Foot traffic is the one factor that greatly contributes to the commercial attractiveness of certain areas. People walking on foot have more time to look at the things they are surrounded by and are much more likely to go inside the building when they see something interesting. That is why the most sought-after properties to have your business in are located in areas with high foot traffic. 

Because of the never-ending demand for commercial properties, and because all business owners want to have as many clients as possible, owning real estate in central areas of the cities, where people tend to go for walks, and renting or selling it after renovations is a great idea. Premium location and many people walking next to the area where the property is located are a combination more than sufficient to make your investment pay off quickly, and enough to attract premium customers willing to pay for all the possibilities offered by the property.

Short-term rent properties for tourists

Probably the most known and invested in type of real estate on this list, but still worth attention, is the short-term one, aimed at (mostly) tourists coming for a few days or weeks to a new city. Nowadays it is probably an option comparable in popularity to hotels, with many platforms dedicated solely for the purpose of renting apartments in popular, touristy areas. 

The popularity of this solution does create huge competition, but also many chances, because on platforms like Airbnb and Booking.com many people or companies do not take proper care of their investments or just believe that offering a place to sleep is enough. The amount of unprofessional investors creates an opportunity to make your offer stand out from the rest.

Short-term renting requires more maintenance, and properties must be cleaned and supervised relatively often, but these additional tasks you are left with also mean that you will be able to earn more. 

Overall, if you buy a property in a place like for example Paris, the most visited city in the world, or Dubai (a place where tourism is developing dynamically) you can be almost sure that with proper care and attention, your investment will be a successful one.

Conclusion

Every opportunity to invest in real estate is different and should be looked at individually, however, some factors that significantly contribute to an investment being successful are quite universal. This list consists of these general factors that usually make certain types of investments successful, and should be seen as the key points in buying real estate.

What is worth noting, is that even if you are able to find a perfect location for your investment, it still needs to be managed properly and the job is not done right after buying a property, or making it ready for renting. Investing in real estate is not as easy as often portrayed in mass media, but certainly is satisfying, and all the hard work it requires will definitely pay off.