Overtime, the real estate industry in Nigeria has enjoyed a generous influx of investors for several reasons.
One of these reasons is the housing deficit that is responsible for the ever increasing demand for houses – as well as the guarantee of profitability that the industry prides itself in.
However, the demand for luxury homes has skyrocketed in recent times, and this seems like a mystery to many.
In today’s post, we uncover this mystery by sharing some key benefits of investing in luxury real estate.
- Minimal Maintenance or Rehabilitation Costs
One of the key features of luxury properties is quality. Investing in luxury properties provides investors with some level of assurance that they would not have to worry about maintenance or rehabilitation costs in the nearest future due to the non-compromise on quality.
Investors are driven by returns. Consequently, it is natural for investors to choose a property with potentials for high returns that require little to no rehabilitation costs in the near future.
- HIgh Appreciation Rate
Real estate is not considered luxury just because of its pricey value. It must also be exclusive while posing some level of superiority.
One of the features of luxury properties in Nigeria is that they are usually located in high brow areas. Consequently, the demand for properties in such locations are ever on the increase – thereby causing the value of properties in the neighborhood to appreciate.
- Lucrative Rental Opportunities
Luxury properties also provide lucrative rental opportunities for investors. For instance, a luxury home in Abuja could serve as a vacation home, as well as an attraction for photography and video shoots.
In reality, the opportunities are endless and investors have the liberty of deciding on how they wish to monetize their properties. However we advise that investors should focus more on what is profitable for the location where the property is situated, as every real estate market is local.
Luxury properties and high brow locations are known to attract high networth individuals. As a result, there is a high level of guarantee as regards security in these locations.
The guarantee of security in a neighborhood could be the singular reason why residents prefer it over other neighborhoods. The increase in the desirability of a property or neighborhood plays a vital role in its profitability.
Consequently, investors consider luxury properties to be fantastic investment opportunities.
- Hedge Against Inflation
Considering the economic trend in recent times, it has become a necessity for investors to find a way to hedge their funds against inflation. And real estate remains one of the most guaranteed ways of doing that.
This is due to the fact that the value of properties rises with inflation, thereby helping investors to keep pace with inflation and prevent loss.
In essence, these five reasons mentioned above further reinforce the fact that investments in real estate remain the safest form of investment on earth.