There are advantages in the business of real estate even during festivity
It is no news that real estate has become not only one of the most talked about investment opportunities but also a guaranteed way to generational wealth. Research has it that real estate is one of the safest long-term investments, ranking higher than most other investment vehicles, because of the benefits it offers such as financial yield from rental income, capital gains, leverage vehicle and an inheritance for the next generation.
Apart from the festivity and shopping splurges that are indulged in during festive seasons, hospitality and investment also plays a key role, especially real estate investments and vacation rentals. It is a known fact that one of the biggest factors that can affect the purchase, sale, rent/lease of a property is supply and demand in the housing market and festive seasons a synonymous with hike in demand.
Properties are seen as a stronger and more consistent investment medium than traditional alternatives alike, which are often impacted by the volatility in the market. Since festive seasons often stand for new beginnings, unity and prosperity, buying properties around this time is seen as an investment that can never go wrong. The real estate sector, which had taken a major hit during the onset of the Covid-19 pandemic and lockdown, home became the first ‘cure’ for Covid as everyone was asked to go home, school and work functioned mostly from home and then hybrid. In certain places here in Lagos, the property market bounced back between July to December as families sought safe and balanced communities with basic facilities and amenities to ease their new realities of live, work and play all in the same community/neighborhood.
With a work-from-home culture seeping in, buyers wanted homes that were large and spacious, not forgetting comfort, security and lifestyle offerings. Distance was also no longer an issue in the new work scenario.
Airbnb the uber of real estate became a thing as well as staycations, getting better reception in Nigeria as the demand for residential properties especially in gated, fully serviced communities hiked to serve this new trend.
This growing demand for vacation rentals is as a result of varying factors, including the flexibility to offer the authenticity of being seamlessly embedded in a local urban neighborhood and ability to tailor lodging experience to personalised interests and needs. Thus, this type of experience is especially preferred for the home-like and personal atmosphere in the accommodations that differ from those obtained by staying in a traditional hotel, however, the traditional hotel rooms sell out still during festive seasons. For some, it’s to escape to a different weather, for others, it’s an excuse to experience new cultures and step away from the familiar. The Airbnb model sees that wherever your holiday high jinks take you, you find a piece of home sweet home there and this has Airbnb apartments booked and busy all through the festive seasons.
Buying properties during the festive season is mostly driven by three reasons: a) An auspicious time to invest in something valuable, b) It is also a time when new building projects are completed and handed over for move-in, c) Real estate developers are known to roll out interesting offers and schemes to attract buyers to their projects. But the biggest factor driving people to buy or rent short stays away from home today is their experience during the Covid-19 pandemic and lockdown. It has made people rethink their priorities, and thus owning a home has gained importance as it offers comfort and security.
Generally, the festive season is the busiest time of the year for most hospitality-based businesses and real estate companies around the world and so positioning to sell and earn at these times is important for hospitality and real estate players. A few sure-fire tactics on how to reach them and attract them to your property:
-Marketing at the right time – The success of any marketing campaign lies in the timing. The right time for your marketing campaign is when the customer is in the right frame of mind to consider and write you a cheque.
-Promoting special prices and enticing offers – The right deals and the right message is very important to make any marketing campaign a success.
-Creating experiential opportunities, they cannot forget in a hurry.
In conclusion, it can be said that the festive season sentiment, against the backdrop of vibrant economic activities, makes it more attractive for real estate activities. However, while investing in property, buyers should not only look at attractive deals, but also consider the reputation of the developer and other factors like location, property documentation, facilities and amenities offered in the neighborhood. As we march ahead in 2023, the industry is set to see a new phase of steady growth, which is a positive sentiment for those who have set their real estate goals for the year and looking to invest this year. Real estate is always a wise asset class given that it sees consistent appreciation.