Advice: Types of real estate investments

When you think of investment real estate, you quickly think of an apartment by the sea or inland or a vacation home abroad. But, of course, the investment offer is much broader than that.

There are different types of investment properties, each with unique characteristics and potential benefits.

First, we have residential real estate, which consists of properties such as apartments, houses and vacation homes. This type of investment property is often chosen because of the constant demand for rental properties and the stability of rental income. Discover the investment offerings here at Immowatchers.

There is also commercial real estate, including offices, shopping centers, SME units and industrial properties. Commercial real estate can be attractive because of long-term leases and higher yields, but it also carries risks, such as vacancies and economic fluctuations.

Another type of investment property is operating property, which includes hotels, parking lots and vacation rentals. These can depend on the tourism industry and economic trends.

There are also specific niches, such as student housing (student real estate) and senior housing (assisted living) that address specific market needs. These segments may be attractive because of their focus on growing demographic trends.

Choosing the right type of investment property depends on individual goals, risk appetite and market conditions, and investors can diversify by investing in multiple property classes.

'Investment real estate remains particularly value stable'

Inflation in recent decades has never been as high as it is today. Nevertheless, within the current economic context, investing in real estate as a form of investment still remains very interesting. 'Real estate remains one of the most inflation-proof investments,' explains Wouter Dekemel of Alides REIM.

Real estate offerings in investment properties

Below you will find an overview of the offer of investment real estate at home and abroad.

The full real estate offerings at Immowatchers can be found here.

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Categories of property in which to invest

There are several categories of investment real estate you can invest in, each with its own characteristics and opportunities. Here are some common types of real estate investments:

Residential real estate

The traditional and best-known category of investment real estate includes properties such as single-family homes, apartments, condominiums and vacation homes. Residential real estate is often acquired for the purpose of generating rental income. It can include both long-term rentals and short-term rentals, such as through platforms like Airbnb.

Commercial real estate

Commercial real estate includes properties used for commercial purposes, such as offices, shopping centers, industrial buildings and warehouses. Commercial properties can be attractive because of long-term leases, higher rental income and opportunities for capital appreciation.

Operating property

Investment real estate, in this case operating real estate, refers to real estate properties that are acquired and used primarily for their operating income rather than for capital growth. This type of real estate investment emphasizes the generation of regular income from the operation of the property, such as rental income or other operating income.

Operating real estate includes several categories, including:

Hotel real estate

Hotel real estate refers to properties used specifically for the operation of hotels, resorts, motels, hostels, or other similar accommodations. It includes both the physical buildings and the associated facilities and amenities required for the guest experience. Hotel real estate can range from small bed and breakfasts to luxury five-star hotels and includes different types of accommodations, such as rooms, suites, restaurants, meeting rooms, swimming pools, and fitness facilities.

Learn more about the most important aspects of hotel real estate and view our Hotel Real Estate offerings here.

Healthcare Real Estate

This type of investment property includes real estate objects such as assisted living facilities, retirement flats and service flats. The operation of this property type is aimed at organizing activities and providing care and medical services to residents, who also live there.

Parking

Investing in parking lots or parking garages is a specific type of real estate investment that focuses on acquiring and leasing parking facilities. It involves taking ownership of parking lots or parking garages and leasing them to motorists on a short- or long-term basis.

Student Real Estate

Investing in student property is a specific type of real estate investment that focuses on acquiring and renting accommodations for students. It involves acquiring property suitable for student housing and renting it out to students during their study period.

Want to learn more about investing in student real estate? Then click here.

Conclusion - types of investment properties

Each of these types of investment real estate has its own characteristics and features, giving real estate investors a wide range of choices when investing in real estate. Therefore, inform yourself well when making your choice. 

Why do people invest in real estate? 

Investment real estate, investing
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