Build to rent has become one of the main trends in the real estate market and is positioned as one of the formulas for the future.
Adequa has decided to bet on this new residential model based on the construction of houses with common services conceived exclusively to be rented as an integrated complex. Its objective is to expand the professional rental property park and adapt to the new needs of society, which is increasingly interested in the rental market. The Build to rent phenomenon has burst onto the scene in our country in recent years, although it has a long history in other European countries. This real estate model has captured the interest of promoters, construction companies and investment purposes and for this reason it has grown exponentially in recent months and is expected to continue to do so in the coming years.
What are the benefits of Build to rent?
Responds to new needs
The pandemic has changed society’s priorities when looking for a home. Currently, people prioritize those spacious, bright homes, with outdoor spaces, common facilities, green areas or large terraces, among others. If until now the location was a key factor, the increase in teleworking has relegated this condition to the background. With these requirements, the construction of new construction promotions that adapt to these new needs has been accelerated.
Dynamization of the rental market
Build to rent is a model that has made it possible to expand the rental housing stock, a market that has been highly saturated in recent years. In this way, it helps to overcome the shortage of rental housing in some areas and responds to a growing demand for this formula.
Space to create community
The build to rent developments stand out for having large common areas where interaction between neighbors is facilitated, a sense of community is fostered and emphasis is placed on the well-being of its tenants. It is an ideal way to have more equipment inside the building and create links with people with whom you live and share spaces.
Although the build to rent is less profitable in the short term compared to the sale of new construction, it provides a high cash flow. In addition, it offers significant long-term returns thanks to the fact that the future capital gains of the real estate asset remain latent. Another aspect that makes this model stand out is that it has a low commercial risk for the promoter, since the sale to the investor or to the fund that finances the project is already previously arranged. From the investor’s side, moreover, the uncertainty of selling or not selling those flats disappears.
The ideal alternative to opt for a new construction home
The build to rent is the ideal option for those who want to live in a new construction home but do not want to buy it. It is the perfect alternative to not give up on a brand-new apartment, but with all the facilities provided by the rental option.