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Nine Key Trends in the Global Investment Real Estate Market: What to Look for in 2024

We discuss what developers around the world are offering and which real estate investment options are currently trending. These projects will provide the best financial performance: liquidity, profitability, capitalization.

1. Branded Real Estate

These are residences constructed under well-known brands, often hotel brands like Hilton, Marriott, Wyndham, but not exclusively. There are also complexes from Versace, Porsche, Armani.

The brand enters into an agreement with the developer who builds the project according to its standards. The result is a unique product that combines the advantages of traditional housing and a five-star hotel. Experience has shown that such projects are popular with investors, who earn on service real estate, and tourists, who rest there. For the former, the income is higher; for the latter, the service is better.

According to Knight Frank (Global Branded Residences Report 2023), this real estate sector has become the fastest-growing in the world. Analysts predict a growth in the number of projects by 12% annually or 55% in total for the period up to 2026.

Almost half – 40% – of all branded complexes are located in North America, followed by the Asia-Pacific region (20%) and Europe (13%). The first projects are appearing in countries where they were previously absent, such as Georgia, Azerbaijan, Albania.

2. Professional Management

This trend is directly related to the previous one: a complex under the brand of a well-known hotel cannot be managed in an amateurish way. The presence of a professional management company is a mandatory condition for five-star service. It is the manager who determines how the complex's marketing will work and whether it can ensure high occupancy of your hotel rooms. Consequently, this affects your income.

However, the trend is broader. Even ordinary projects, not backed by a global brand, strive to handle operational issues competently. From the construction phase, developers consider who will manage the common areas and handle the property's rental. There are two options: create their own management company or sign a contract with an operator already active in the market.

Interestingly, in some countries, the government is encouraging a shift from chaotic to planned real estate management. For example, in Thailand, it is prohibited to rent out apartments on a daily basis in complexes without a hotel license and, therefore, professional management. Turkey recently enacted a similar law.

3. All-Inclusive

The all-inclusive trend is not new: some countries, like Turkey and Egypt, have already made a name for themselves in this area. Now, the all-inclusive format is spreading further and appearing in regions where nothing similar was previously built.

The most striking examples are Montenegro and Georgia. Here, projects are being constructed that resemble a city within a city in scale. The complexes offer various types of real estate - studios, spacious residences, townhouses, villas - and dozens of infrastructure facilities accessible to owners.

Pools, restaurants, fitness and spa centers, entertainment centers for children, conference halls, and coworking spaces... All these come as an addition to the property.

For these countries, all-inclusive resorts are a unique offering. Such complexes cater to package tourists and are capable of attracting guests year-round. For investors, this guarantees high financial performance: liquidity, profitability, and capitalization.

all-inclusive resort project in Georgia
An example is the Wyndham Grand Residences Batumi Gonio all-inclusive resort project in Georgia

4. Loyalty Programs

In many residential complexes, you'll find elements of rewards programs: exclusive events for residents, various activities for children and adults, discounts at partner restaurants... But now, this trend is reaching a completely new level.

The RCI program has been developed, which offers room exchanges between hotels around the world. This means that people who buy property in one complex can stay in all the others for free or at a big discount.

By the way, the brands behind these hotel rooms also have their own loyalty programs. For example, Wyndham Hotels & Resorts has over 103 million regular customers who frequently visit the hotels in the network.

5. Guaranteed Income and Capitalization

This option is in demand among investors who do not want to take risks. Specifically for them, developers offer a "guaranteed income" program. Such projects are available in many countries: Thailand, UAE, Turkey, Georgia, Greece, the United Kingdom, the USA… Furthermore, the rates are approximately the same everywhere – 4–8% annually.

At the same time, these complexes offer real profitability from hotel management. In this program, the profit is always much higher – up to 20% annually and even more. Ultimately, the final result depends on how the hotel residence performed during the reporting period.

Some developers have gone even further: they not only guarantee rental income but also the capitalization (increase in value) of their properties – this is unprecedented!

6. Buyback Option

Investors accustomed to the stock market often notice a significant drawback of real estate as an asset – its low liquidity. While stocks can be sold in a day, returning capital invested in real estate can sometimes take months, as it requires finding a buyer on the secondary market.

The buyback option is like an insurance for your investments. This option is specified in the contract at the time of purchase. Upon the investor's request, the developer is obliged to repurchase the property after a few years at an increased price.

large-scale complexes with developed infrastructure
The options of "guaranteed income" and "buyback" are usually offered by large-scale complexes with developed infrastructure

7. Investment Packages

This trend is fresh, with new investment products just starting to emerge in 2023, again in response to investor demand.

The high entry threshold is the main disadvantage of real estate as an asset. To purchase a liquid asset, you'll need at least $50–80 thousand, often much more. On the stock market, with such capital, you can create a diversified portfolio across geographies, sectors, and types of securities. But in real estate, all the money has to be invested in a single asset.

By purchasing an investment package, you become a co-owner of the property and receive income proportional to your capital. And you invest an amount that is an order of magnitude smaller than what is required to buy an entire property!

8. Cryptocurrency Payment

Another new trend that many now support. It's possible to pay for real estate with cryptocurrency in dozens of countries around the world: UAE, Thailand, Indonesia, Germany, Georgia. There are thousands of such offers on Prian.

Developers are becoming more flexible every year. Today, they are ready to accept payments in the currency that is convenient for you - US dollars, euros, the national currency of the country where the property is located, yuan. And now, even in bitcoins.

9. Golden Visas

The USA recently updated its investment program, the UAE introduced a whole package of "golden visas," Egypt now offers citizenship to investors, and Hungary announced that it will issue residence permits to real estate buyers. More and more countries are joining this process, and investors are reaping the benefits.

Indeed! If obtaining a residence permit or second citizenship through real estate purchase is important to you, this opportunity becomes an additional argument in favor of the transaction.

Let's examine a project that combines ALL the modern trends

Introducing the Wyndham Grand Residences Batumi Gonio in Georgia, a complex that offers ALL the trendy opportunities for investors.

Wyndham Grand Residences Batumi Gonio
Wyndham Grand Residences Batumi Gonio

Branded Real Estate. Yes, and with a top brand! Wyndham Hotels & Resorts is the largest hotel chain in the world: $1.3 billion in revenue in 2022, 9,300 hotels in 95 countries, over 100 million regular customers. And Wyndham Grand is the most premium brand in the network's portfolio. This is another guarantee of demand, as wealthy people do not give up on vacations even during crises.

Professional Managers. Present – Aimbridge Hospitality, the world's largest independent company, managing 1,500 hotels from Sheraton, Hilton, Marriott, and other brands.

All-Inclusive. Yes again! This is the first all-inclusive resort in Georgia, which will undoubtedly attract package tourists. The complex includes four hotels combined with a common infrastructure of 90 facilities on an area of 27,115 sq. m. This is especially important for Georgia. The local market still lacks large-scale complexes comfortable for relaxation all year round. Therefore, most tourists visit Batumi in summer, fewer during the New Year holidays, and many hotels are idle in the off-season. The appearance of the Wyndham Grand Residences all-inclusive resort will fill this gap.

Loyalty Programs. Property owners become members of RCI – the world's leading network for exchanging hotel rooms. They get to stay for free in 4,500 hotels in 110 countries, and another 600,000 hotels become available with discounts of up to 60%. Moreover, the complex has its own club – International Travel Club, which offers members free stays in Wyndham Hotels and Resorts worldwide.

Guaranteed Income and Capitalization. Standard rental income rates with a guarantee – 5–7% annually. The real return on non-guaranteed programs is expected to be much higher: 13–17% from rental payments; 30% from property price growth. Investors can choose which program to participate in: with a guarantee – or without it but with the potential to increase profits.

Buyback Option. The developer will repurchase the property at a 10% increased price – if such a request is made. You can earn income from hotel management, and if necessary, quickly return the principal capital by selling the property back to the developer.

Investment Packages. And this opportunity exists: buy a whole room in the hotel residence or a share in it starting from $4,510. Managers will provide more details on how this works. Feel free to contact them!

Cryptocurrency Payment. Go for it! You can also pay in dollars or Georgian lari.

Golden Visas. And yes again – buyers of real estate in Georgia worth $100,000 can obtain a residence permit.

Quoting conditions of Prian.info materials

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