The features that set high-end luxury real estate apart from the other options are location and unique amenities. Buyers seeking a luxury experience will be on the lookout for properties in bustling or eclectic locales, ensuring that the fun of their favorite city is right outside their door. A luxury space would also ideally serve as an oasis within the city, providing homeowners with access to their own private game and theatre rooms, spa bathrooms, outdoor kitchens, and gyms.
Finding properties that fit both of these criteria can be tough, especially if you’re hoping to find investment opportunities in luxury real estate. In response to the limited number of standalone luxury homes, many investors are turning to mixed-use property investments to fulfill the desire to combine residential spaces, a city’s atmosphere, and desirable amenities for high-end buyers and renters.
If you’re interested in learning more about the benefits of mixed-use properties and what makes them luxury real estate options, keep reading.
While luxury and exclusivity often go hand in hand, the tides are turning in the post-pandemic environment. Rather than resort to secluded luxury homes, buyers may be more interested in finding ways to establish a community with others in their neighborhood to enjoy common spaces. Renting a luxury unit in a mixed-use complex could be the perfect solution.
Mixed-use properties offer residents opportunities for community-building spaces and services, like clubhouses, outdoor recreation areas, and organized events. This would provide a way for residents to enjoy their private living spaces and communal social spaces at their leisure.
From there, they would be able to enjoy the property’s amenities with other residents who are seeking the same luxury experience. Property owners can benefit as well by charging additional fees for access to events and amenities, adding to their overall profits and enabling them to afford higher quality features for tenants.
Encourage a Luxury Lifestyle
In addition to the residential and communal features of mixed-use properties, these developments can include commercial units as well. This provides property investors even more opportunities to make money while curating a luxury lifestyle brand with appropriate commercial tenants.
For instance, mixed-use properties can extend the home spa and gym trends of luxury real estate by incorporating those businesses on-site. A property owner can choose to rent out some of the commercial units to premier wellness and lifestyle companies, providing residents with opportunities to step out of their living spaces and into a real spa or gym with luxury services.
Not only will this appeal to residents’ preferences, but it will also earn more money for property investors. Earning a rental income from both residential and commercial tenants will prove particularly lucrative. Of course, the options don’t stop with wellness services–commercial tenants could include salons, retail shops, and restaurants that further the development’s luxury brand.
While mixed-use properties are ideal for serving the needs and desires of residents, they’re equally (if not more) beneficial to investors. If anything, the marketability of such a space correlates to high demand–which means that your property wouldn’t have vacancies for long!
As mentioned, earning a rental income from both residential and commercial tenants is a great way to diversify your earnings and maximize your property’s profit. Further, providing both types of rental spaces will safeguard your business. Diversifying your investments this way can help balance out loss if one section stumbles.
While an ambitious project like a luxury mixed-use property development might seem out of reach, there are plenty of financing options available to interested investors. Commercial property loan programs could help you secure the necessary funding to get started while also separating and protecting your personal assets from your commercial endeavors. If this concept appeals to you, it’s certainly attainable.
Whether you’re a high-end buyer, a prospective investor, or simply a lover of all things luxury, mixed-use properties are a real estate trend to look out for.
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