The housing market is collapsing. Excess demand for housing causes house prices to rise in more than three-quarters of all countries in the world. The average global house price index during the pandemic is 110.6. This high occupancy rate does not only concern the private sector.
The occupancy rate of commercial buildings is over 70% in more than half of the countries in the world. In countries where the housing market is collapsing, such as the Netherlands, the occupancy rate for vacation rentals is between 90% and 95%. This has made real estate investors in the leisure sector cold and hard money.
Market saturation is by far not on the cards of real estate investors. Especially, for investors interested in vacation homes. There are many opportunities to acquire an investment property in mature real estate markets. As the current state of the housing market has lowered the mortgage rate on all properties, 2022 is an opportune time to invest in a vacation rental. As investment properties have grown in popularity in recent years, acquiring a vacation home as an investment is considered low risk. Especially since the increasing occupancy rate of vacation homes drives up the asking price enormously, leaving investors with immediate profits. Market dynamics ensure that a commercial real estate investment will earn more than the average savings and investment bank account.
A vacation rental is a safe and stable investment because its popularity always remains constant. There is always a demand for vacation homes because vacation homes bring the privacy of home to a vacation destination. Plus, rentals offer more space and capacity. In particular, large groups of people tend to rent a vacation home above a hotel floor. Capacity and utilities mean that the price of a vacation rental is lower than that of a hotel stay. This is particularly advantageous for long-term stays. During the holidays, most vacationers tend to seek comfort. A tenancy allows tenants to have their own family space with their own set of rules and boundaries. For destinations abroad, a vacation home allows vacationers to live an authentic experience. More than they would have in a modeled station. Because vacation rentals are not all-inclusive, renters are required to cook their own food using local groceries or dine at local restaurants. This allows vacationers to experience local foods and flavors. Thus, holidays can never become obsolete.
For investors who have not yet chosen their leisure investment property; the Netherlands is a lucrative destination. With vacation home occupancy high and the state of the housing market, investors are giving up yield sooner rather than later. The greatest demand is currently in vakantiehuis Texel, the islands in the north of the Netherlands. Then an investment in a vakantiehuis Sneekermeer in the same province will also bring favorable profits. Its nature and civilization make the province of Friesland a popular place for recreation. The last recommendation is to invest in a vakantiehuis België. Architecture and culture make neighboring country Belgium, Belgium, another favorite holiday destination for many vacationers around the world. Thus, a must for real estate investors.