Top profitable areas in Vacation Rentals.
First, the location on the map.
In the hotel industry, as in the real estate industry, vacation homes share the same similarities in terms of value given by position, area and proximity to various facilities. The location on the map is a top aspect, but in this field we also monitor other specific and very important indicators:
– the attractiveness and tourist interest of the area
– facilities for spending time and possible activities
If in the residential real estate field proximity to facilities such as schools, kindergartens, malls, business centers, etc. is important, here, SPA facilities, swimming pools, playgrounds and entertainment, restaurants, etc. are more important.
Other exclusive facilities, such as the sea or mountain view, the distance from the beach or the ski area, directly influence the value of the property.
An interesting study places Romania at the top of the ranking in terms of the interest of Romanian citizens to travel in their own country. Unlike the French, Italians or English, Romanians like to travel in their own country. The advantage of Romanians is that Romania offers a varied range of attractions and tourist areas, recently appreciated and broadcast in a successful documentary of international interest.
In an attempt to discover the most profitable areas, at the request of our investors, at KeyStay we developed an analysis based on an equal sample of real estate properties located in different tourist areas in Romania. Our analysis was based on certain factors including:
– Tourist seasonality vs. the rate per night
– Occupancy rate and annual profit
– ROI efficiency vs investment value
– but also the growth potential of the real estate value of the asset, an important indicator in the investment field.
The analysis concludes that the most attractive and performing tourist locations are still Mamaia and Mamaia Nord in the seaside area and Poiana Brasov in the mountain area, these occupying the top places in the ranking.
The performance in the mountain area with a seasonality of over 200 days is, however, almost as much as the value of the profit generated by the resorts in Mamaia Nord, where we estimate, in the following years, an increase in seasonality to an average of 100 days, but with a higher rate at night compared to the mountain area.
In conclusion, referring to the purchase price/property, taking into account profitability and seasonality indices from recent years but also predictions and the constant upward slope of the field, our recommendations remain towards Mamaia and Poiana Brasov in a proportion of 50/50.
Source: Interview given by Geanina Stefan, representative of KeyStay.com, for Money.ro
Link to news: www.money.ro/romania-top-5-zone-profitabile…