In current times, demand for affordable residential entities has increased in leaps and bounds. The rise in premium projects and luxury apartments has made it difficult for the low-income group to grab an affordable residential unit. There is no choice before the marginal section of society to procure a decent house in the city centers. Hence, a new approach is underway.
That is the approach of hotel owners and property investors. By reducing the risk associated with an investment in these projects, they try to bring in a smooth supply of affordable residential units. These projects provide a smooth return on investment and significantly lower the risk of the housing shortage.
- Speedy and high appreciation
The workforce population belonging to low and medium-income families got forced to stay on the city outskirts because of their limited resources. Presently, Maxwell Drever reflects that their lack of capital is responsible for their inaccessibility to health, education, residence, and lifestyle standards. Hence, the development of residential units in the city centers comes as a rescue for these individuals who are the major service providers. Moreover, hotel transformation provides the area with new momentum with improved infrastructure.
- Limited risk
Calculation of risk is a significant factor for every investor. Whether share market, real estate, or any investment, scheming of risk is vital. Though there are risks associated with an investment in the share market, such problems are not with affordable residential units. These projects have limited risk but vital benefits for the community at large.
- Market saturation and luxury projects
Luxury projects get priced at a peak. Hence, it is difficult for low and medium-income families to grab these units in the city centers. In such a scenario, a residential estate in the industrial hub is the only option. For this, various hotel owners and real estate investors are transforming vacant and erstwhile properties by procuring the benefit of governmental policies and protocols. They are also trying to analyze the opportunities associated with an affordable segment of society.
- Better resale value
By transforming hotels into affordable housing, the property value increases above the marginal price. Hence, Maxwell Drever says people are willing to invest in this sector because of their low budget and limited resources. Since the increasing demand for affordable residential units has seen a rise in the recent past, property resale is also under deliberation.
- High demand among tenants
Affordable housing is for low and medium-income families who want a decent living. It will help attract more tenants and grab smooth revenues. Most individuals desire decent residential living and nothing luxurious. Since the hotel rooms have different infrastructure and layouts, they have to retransform this to ensure that a home-like environment exists.
When you think of investing in this avenue, you must understand your available resources comprehensively. After calculating the resale value and other amenities, you are all set to cater to the community. Hence, it is true that the concept has a lot of substance and the potential to change society.
