Timing
Since 2015 Spain began the economic and real estate recovery after a long crisis, where property prices corrected between 30% and 60%. Recovery began at the beginning, as is usual in these processes, in the Premium areas of Madrid and Barcelona, and later replicated in prime areas of intermediate cities, such as Seville, Malaga and Valencia.
Specifically in Seville, the price recovery began to accentuate in mid-2018, currently (May 2020) still being 20% below the maximum prices of 2007.
Buy below Market Value
This is one of the 3 key variables to optimize the profitability of a property. Between 10% and 15% below the current market value. This is possible due to the development scheme of this project under the self-promotion system, which allows the acquisition of properties at cost price, counting on the Integrated Management of the project by a multidisciplinary team with extensive experience.
The current market value in the area is € 3,300 / € 3,600 m2 for homes of these characteristics, while the project's homes range between € 2,600 and € 3,000 / m2. On the premises, an important price range is also projected, also acquiring around 10% below the market, and generating an annual income between 6% and 7%.
Efficient Property Management
The second of the three key variables that contribute to the generation of high profitability is an optimal management and operation of the property, whether for short, medium or long-term rental. Minimizing vacancy periods, delinquencies, maintenance expenses, etc.
At Feria Vitae there is a high demand for long-term rentals (5 years) with net returns above 4% and medium and short-stay (or tourist) with projected returns of 5% -7% Net per year.
Right Time Cycle Resale
Exit at the right time is the third key variable to obtain extraordinary returns. We think of a 3-4 year time horizon for this investment, after 2 years of rental operation.
We estimate resale with an estimated revaluation of more than 7% per year plus 2 years of net income between 4% and 6% per year. Generating an estimated annual net profitability of more than 12% in the indicated period.
Make an
enquiry
Download the dossier with floor plans, project technical specs and more information.