Build to Rent is an extraordinary opportunity for investment funds specialising in the residential market seeking homes designed for rental purposes rather than for sale. The schemes of this real estate model is to offer leasing space managed by professionals or by the owner/operator themselves and are primarily attractive to investors looking for long-term returns.
By investing in a BTR project the buyer secures a non-volatile and high quality investment, taking into consideration aspects such as location, which are regularly developed in urban or suburban areas with competitive land values, and emphasising that under the current measures and social system rental developments can be delivered faster than homes for sale, as they do not run the risk of market saturation in the same way.
This real estate formula arrived in Punta Cana as a response to the sociological changes brought about by the pandemic, where the new generations of the labour market are looking for job mobility and are fleeing from any ties that prevent them from having flexibility, which makes the rental market their first option. These new trends are joined by other changes in socio-cultural habits, such as the increase in single-parent households.
Another important point to consider is the long-term return with lower risk, as by keeping the future appreciation of the real estate asset latent, it offers attractive returns as many investors are typically large long-term asset holders, attracted by the steady income streams offered by the build-to-rent model, as well as the ability to diversify their holdings into other forms of real estate.
Benefits of Build to Rent
For Investors:
– Steady revenue stream
– Potential for improved performance and increased profits
– Ability to minimise costs
For Tenants:
– Spacious areas and attractive amenities (gym, coworking, yoga room, restaurants…)
– Affordable prices and privileged location.
– Living in a community, not just in a building.
Benefits of Build to Rent
The build to rent real estate model is positioned as a current and trending figure with future projection in Punta Cana that is literally here to stay. In reference to the developer’s objective will be to build to maintain commercial activity, and not to fall into the oversaturation of housing under the “buy to live” model, even so, it is important to keep in constant research of market demand to meet their needs.
Even so, although everything is seen in a very positive light, it is important to take into account that aspects such as construction time, permitting, building permits and construction management, being a relatively new model for the area, it is important to take into account that governmental entities do not see such a construction scheme as viable.
Its Evolution and Future
It is undoubtedly a dynamiser of the living market, such a real estate model will help to overcome the demand for the supply of homes for all types of investors and respond to a broad collective.
