The housing market is collapsing. The surplus in demand for housing causes the house prices to increase in more than three-quarters of all countries around the globe. The average global house price index during the pandemic is 110.6. This high occupancy rate does not only apply to the private sector.
The occupancy rate of commercial properties is higher than 70% in more than half of all countries worldwide. In countries where the housing market is crashing, such as the Netherlands, the occupancy rate of vacation rentals is between 90% – 95%. This made real estate investors in the leisure sector cold, hard cash.
Market saturation is by far not written in the cards for real estate investors. Especially, for investors interested in vacation homes. There are many opportunities to acquire an investment property in mature housing markets. As the current housing market condition caused the mortgage rate on all properties to decrease, 2022 is an opportune period to invest in a vacation rental. As investment properties increased in popularity over the past years, acquiring a vacation home as an investment is considered to be low risk. Especially, since the increasing occupancy rate of holiday homes causes the asking price to rise immensely, leaving investors with immediate profits. The market dynamic assures that a commercial property investment will yield more than the average saving and investment bank accounts.
A vacation rental is a secure and stable investment as its popularity always remains consistent. There is always a demand for vacation homes because holiday homes bring the privacy of home to a holiday destination. Additionally, rentals offer greater space and a larger capacity. Especially, larger groups of people tend to rent a holiday home over a hotel floor. The capacity and utilities cause the price of a vacation rental to be lower than a hotel stay. This is particularly favorable for longer stay holidays. During a holiday, most vacationers tend to look for comfort. A rental allows the rentees to have their own home-like space with their own set of rules and boundaries. For destinations abroad, a holiday home allows the vacationers to have an authentic experience. More than they would have in a modelled resort. As vacation rentals are not all-inclusive, rentees are forced to cook their own food with local groceries or dine at local restaurants. This allows the vacationers to experience the local foods and flavors. Thus, holiday can never become outdated.
For investors that are yet to pick out their leisure investment property; the Netherlands is a lucrative location. With the high occupancy rate of holiday homes and the state of the housing market, investors yield their return rather sooner than later. The highest demand is currently in vakantiehuis Texel, the islands in the North of the Netherlands. Next up, an investment in a vakantiehuis Sneekermeer in the same province will also yield favorable profits. Its nature and civilization make the province Friesland is a popular leisure location. The last recommendation is investing in a vakantiehuis België. The architecture and culture make neighbor country België, Belgium, another favorite holiday destination for many vacationers around the globe. Thus, a must for real estate investors.