What Kind Of Property Appeals To Most Of Us?

Depending upon the budget and business plan, investors usually opt for an investment that will be high on returns and makes for a good deal in the seller's market. From apartment buildings to multi-family properties, there can be various types of property that work well for an investor.

Real estate sector is vast and it can be gauged by the kind of variety that is in here – be it residential property, multi-family properties, commercial real estate, retail and mixed-use real estate. One needs to understand the various kinds of real estate before jumping into investment. Residential properties remain the favourite option amongst investors especially because of its mass appeal. Commercial real estate targets different sets of people so the investors remain uncertain of whether to invest in this class or opt for residential realty.  

For a good long-term investment, ultra-modern homes which are flashy from the outside but have little or no convenience from the inside may not be the correct property to put your money in. The location is another prime factor, which an investor focuses on. An old property that may require renovation will still pull in investors if the location is good. An investor will still choose these houses as they know that the money is safe.

Let us look at the different kinds of property and figure out what appeals to the investors most:

Residential property – houses, apartments, villas 

Houses and apartments are built for the masses. So, the volume and target audience is huge. Investors prefer investing in these properties the most. If the investor is financially stable and can invest a bigger amount then he can go in for multiple houses, apartments or even bungalows, villas and cottages. These properties have less risk and the returns are higher.    

Multi-family properties – housing complex

There was a trend in the past of having huge houses which are specially meant for joint families. But now, time has changed and the concept of nuclear family has emerged. The owners started selling their big houses to builders for a huge profit. Now, these spaces are largely used for constructing multiple flats containing one or two flats on each floor. These are mainly known as builder-constructed flats. It helps the builders get a good deal and earn a huge amount by selling or putting homes on lease.

Commercial real estate – office space, skyscraper 

These are mainly small-large office spaces, multi-storey buildings and business towers. The growing popularity of suburbs brings in more scope for office spaces. Generally, developers build such property and directly sell it to the owner who wants to open an office or put it on lease. 

Retail – shopping malls, departmental stores

Retail is somewhat different from commercial real estate. There are a set of investors who prefer investing in retail in terms of putting them for lease. The rent is high in retail, so the investors have the willingness to invest their money into these properties. 

Mixed use real estate investments 

There are some properties which developers build in a way for multiple uses. There can be banks, offices, restaurants, stores, etc. but different from malls in one single land. Such kind of property investment depends on the location and how efficiently the space is being used. Usually, this is the least appealing property type. The profit is uncertain and the returns are difficult to estimate.