Using the Tourism Sector to Boost Your Real Estate Business
Tourism and real estate are two distinct industries yet related. With tourism, people travel and stay in places outside their usual environment for leisure and other purposes.
The link between tourism and real estate integrates developement that include entertainment components such as parks, hotels, among others, constructed along with residential and commercial real estate facilities.
The real estate and tourism sectors in Nigeria have grown and are both complementary.
How can one boost their real estate business through the tourism sector: ?
Tourist hotspots typically have infrastructure and facilities available that are constantly improved, such as the road or highway, hotels, restaurants, and entertainment centres, among others. The amenities associated with those areas or locations should be prioritised and developed.
If you own property near such areas, the value of your property will increase due to the available amenities that will make it more convenient for your tenants or potential buyers.
Because of the popularity of certain vacation destinations that attract many people, real estate performs better in tourism hotspots. These hotspots have the potential to accommodate luxury developments, making it a desirable location for many because properties in such areas will be in high demand and will increase in value over time.
Expatriates appreciate the convenience of high-end facilities and amenities near tourism hotspots. They prefer to stay in areas that make them feel more at ease. This contributes to an increase in capital and rental value because foreigners are willing to spend for a comfortable home or rental.
Rental or Vacation Homes
Short term rentals are popular among tourists and backpackers because they are affordable and convenient, despite the availability of numerous prominent hotels, motels, and resorts.
Developers may choose to build residences sold to the general public but are leased back to the developers for vacation rental purposes. These agreements are usually done with Guaranteed Rental Return (GRR) properties, as most buyers view them as an investment.
Residential tourism transforms places to urbanization which attracts real estate investors and potential clients. Investing in residential tourism raises land prices or property values.
Development of Large Scale Tourism Resources
The development of large-scale tourism resources such as resorts, theme parks, and residential/vacation properties characterised by tourism real estate model would help increase property value.
Founder/CEO Luxury River Nooks