Real estate business doesn’t just involve dealing with houses or land. There are many types of properties you can use for business, each with different target markets, needs, and preferences. You should choose the type of property that aligns with your target market, needs, and preferences.
Some types of properties you can choose from include:
- Exclusive dormitories: These are dormitories that offer better facilities and comfort than regular dorms, such as en-suite bathrooms, air conditioning, TV, wifi, kitchen, living room, etc. The target market for this type of property is students, workers, or expatriates looking for comfortable, safe, and affordable living spaces. The advantage of this property is that you can set higher rental prices and maintain high occupancy rates. However, you need a larger capital for building or renovating the property and higher operational costs for utilities.
- Cottages: These are houses or villas located in tourist areas, such as mountains, beaches, or rural areas. The target market for this type of property is tourists seeking a different, unique, and enjoyable lodging experience. The advantage is that you can set high rental prices, especially during holiday seasons, and have the potential for additional income from catering, transportation, or tour packages. However, you should be prepared for demand fluctuations, competition with hotels or other accommodations, and the risk of natural disasters or environmental damage.
- Co-working spaces: These are shared workspaces that offer facilities and services supporting productivity and collaboration, such as desks, chairs, wifi, printer, scanner, meeting rooms, coffee corners, etc. The target market for this type of property is freelancers, startups, or communities looking for flexible, creative, and affordable workspaces. The advantage is that you can attract many customers with various rental packages, such as hourly, daily, weekly, or monthly, and also have the opportunity to host events, workshops, or seminars related to your business or expertise. However, you need a significant capital for renting or buying the property and high operational costs for electricity, internet, cleaning services, etc.
- Student apartments: These are apartments specifically designed for students, offering facilities and services suitable for their needs and lifestyle, such as bedrooms, bathrooms, kitchens, study rooms, laundry, gym, swimming pool, etc. The target market for this type of property is students looking for housing close to campus, practical, and modern. The advantage is that you can set competitive rental prices and have a stable occupancy rate as there will always be demand. However, you should be prepared for competition with other apartments or dormitories and the risk of damage or negligence from tenants.
- Shophouses: These are dual-purpose buildings serving as both residential and business spaces. The target market for this type of property is small and medium-sized entrepreneurs looking for strategic, efficient, and cost-effective business locations. The advantage is that you can have two sources of income, from renting the house and renting the shop, and also have a high resale value due to its location usually on the roadside or in the city center. However, you should be prepared for government regulations, security issues, and the risk of fire or floods.