17:07 22 January 2020
Microapartament can be profitable investment
You can earn from a few to several percents per year on renting an apartment in an aparthotel.
Until recently, aparthotels operated in holiday resorts. Today, more and more are being built in large cities. One of the newest in Wrocław, western Poland, is the Legnicka 60C building, constructed by the BY MADE group. Kostiantyn Fedyna, a member of the management board of BY MADE, argues that this is a profitable investment on which one can make a lot of money.
"Seven percent is the profit generated thanks to the contract with the operator, which guarantees rent for several years. The operator equips and finishes the premises to a high standard, and then manages the property. This gives investors a number of benefits: first and foremost, the certainty of stable income and time savings,” says Fedyna.
You must also take into account the price increase on the real estate market, which is developing dynamically. Fedyna reminds that in the best areas of big cities real estate prices can rise by 15 percent a year. This means that the investor earns on rent and benefits from the growing value of the property.
“Considering these two components, the rate of return can be, with cautious forecasts, even 10-12 percent per year," estimates Fedyna.
(WBJ)
