More and more investors globally are realizing the value of this segment through the fundamentals of sustainability.
Investments in Hanoi’s apartment rental real estate market (including segments such as residential areas, shared living spaces, student dormitories and nursing homes) hit an all-time high by 2021, despite growing economic difficulties, according to statistics from Alpha Housing.
While the Covid-19 pandemic has dragged the global economy down, this segment of rental housing real estate has recovered well with higher investment levels compared to other types of property. other real estate.
This resilience thanks to the basic rules of society. Housing is a basic need, and there are many markets that often fall into oversupply.
Meanwhile, young people moving to urban centers to work and study, fueling demand for apartments in HCMC, can turn to the Rentapartment Agency.
This is a trend that is unlikely to be changed by the pandemic in the long term. Along with the rapidly aging population, the demand for housing built for all ages is increasingly urgent and increasing.
As an alternative, developing housing has become a major investment asset, and the dual benefits of investing in the apartment segment are growing stronger. Investors wishing to diversify their portfolios before the pandemic have chosen to increase investment and two categories of apartments for rent and industrial real estate to search for revenue streams. safe entry.
Rentapartment Agency currently leads the apartment rental market in Ho Chi Minh City, recording more than 2,000 apartments, houses, villas for rent successfully traded in the first quarter of 2021.
The great opportunity in this segment is still very potential. Barriers to home ownership, changing cultural norms and better product quality mean renting has become a more desirable option for all age groups. Larger cross-border management platforms not only improve the user experience, but will also be productive for investors.
For the first time in history, the world has seen the highest degree of Quantitative Easing (the central banks’ way to stimulate the economy by buying bonds and other assets from commercial banks. to reduce interest rates and boost economic growth and inflation) and money printing has caused most types of real estate to lose profits. At the same time, the return on alternative investments is reduced. Therefore, it is not surprising that residential real estate has become a good investment channel with stable profitability.
Rental properties in niche markets such as condominiums, hostels and nursing homes are also growing as highly profitable real estate is gaining ground. Vietnam will be an opportunity for many of these niches, as these types of real estate are highly correlated with both the young, growing population as well as the fast aging population in our country.
Although Covid-19 presented short-term challenges, responding to climate change is perhaps still the long-term challenge and also the greatest opportunity for the real estate industry.
Addressing climate change and making a positive difference to society are the causes that have driven the global agenda across all economic sectors. Investors in the rental real estate segment have gradually become serious about this.
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