In recent years, the rental business has undergone significant changes, and the current economic reality shows that investing in the construction of rental homes is becoming more profitable than selling residential properties. Research indicates a continuous growth in demand for rental housing. An increasing number of people are choosing to rent instead of buying a home, driven by changes in lifestyle, job flexibility, and a preference for mobility. This creates a steady flow of tenants for new developments, making the rental business attractive.
Through market research, we have concluded that building affordable communities for investment on platforms like Booking or Airbnb is more advantageous than constructing square meters for sale. Analysis shows that over a 10-year period, the rental business yields greater profits than selling the same properties. Let’s consider concrete figures:
The average selling price of a typical home in your area might be X euros. The rental price for a similar home in the same area could be Y euros per month.
Assuming you rent this home for 10 years:
The total rental income over 10 years would be 10 12 Y = 120Y euros.
If you sell the house, you only receive X euros as a lump sum.
Example:
If Y = 1,500 euros (rent) and X = 150,000 euros (sale), then:
Total rental income: 120 * 1,500 = 180,000 euros.
Difference: 180,000 euros – 150,000 euros = 30,000 euros in favor of renting!
Furthermore, renting is advantageous not only due to profitability but also because of lower operating costs. Owners of rental properties can often pass some of the maintenance expenses onto tenants or use property management companies to minimize their costs.
Financing new rental communities presents an opportunity to invest in a growing market segment. Such communities with good infrastructure and accessibility can become the heart of the rental business. When considering platforms like Airbnb, investors see how quickly the short-term rental market is growing, potentially providing additional income.
In times of uncertainty and change in the real estate market, investing in the construction of rental homes appears enticing. The decision to build not only helps generate a steady income but also offers long-term advantages in the investment world. Over the next decade, the rental model is expected to yield greater profits than traditional real estate sales.
In searching for companies that can construct homes quickly, efficiently, and at lower construction costs, we discovered the Lithuanian company UAB Nikrob Home.
UAB Nikrob Home is a Lithuanian company specializing in the production of modular homes. It offers innovative solutions in the field of prefabricated housing, ensuring high quality, energy efficiency, and modern design.
Key Aspects of UAB Nikrob Home’s Operations:
Modular Homes: The company produces prefabricated modules that are then assembled on-site. This significantly reduces construction time and minimizes time and financial costs.
Individual Approach: UAB Nikrob Home provides clients with the opportunity to customize designs to their needs. This may include altering layouts, selecting materials and finishes, allowing for the creation of unique properties.
Quality and Durability: All homes undergo strict quality control and meet modern safety and environmental standards. The materials used are highly durable and resistant to external factors.
Energy Efficiency: High thermal insulation ratings of UAB Nikrob Home’s modular homes provide comfortable living conditions and help reduce heating and cooling costs.
Wide Range of Applications: Modular homes are suitable for both permanent residence and short-term rentals, such as in tourism projects. This opens new opportunities for investors in the real estate rental sector.
Environmental Responsibility: The company follows sustainable development principles, striving to minimize negative impacts on the environment during the construction and operation of its properties.
UAB Nikrob Home is an optimal partner for investors looking to enter the rental housing or construction segments. With its flexibility and innovative solutions, the company meets the demand for prefabricated housing, making it competitive in the real estate market.
