Fully-equipped double and four-bed suites
with stunning views over the town of Los Gigantes, a popular tourist centre. It is possible to accommodate you not only for a short-term but also a long-term stay.
Sale of an Established Business Including Ownership of 10 Single-Bedroom Apartments in a Single Building with Beautiful Ocean Views in Los Gigantes, Tenerife.
Price: €2,350,000 + Taxes and Fees (Approximately 8.5%)
The sale includes the website, an 8-year clientele, and an established property management company (subject to change according to the owner). Most of the apartments have undergone significant renovations, and additional renovations are underway. The complex features a reception, a pool, and a pizzeria on the ground floor. Economic data is available only to serious inquirers after the signing of a Letter of Intent (LOI).
Here are a few reasons why this project could be interesting for an investor:
What Makes Los Gigantes in Tenerife Attractive to Real Estate Investors?
Los Gigantes is a popular tourist destination on the western coast of Tenerife and has several factors that might appeal to real estate investors. Here are some key aspects:
Breathtaking Natural Environment: Los Gigantes is renowned for its stunning cliffs towering above the ocean. These majestic rock formations are among the greatest natural wonders in Tenerife and attract many tourists. The natural beauty of the area appeals to those seeking a unique and scenic environment.
Sunny Weather: Tenerife is known as the island of eternal spring, offering pleasant and warm weather for most of the year. This advantage draws tourists who travel here for sunshine and warmth. For real estate investors, it translates to a stable demand for property rentals or purchases.
Tourist Appeal: Los Gigantes is a favored tourist destination with numerous hotels, resorts, and restaurants. Tourists come here for relaxation, beach activities, diving, and beautiful views. Real estate investors can benefit from the tourism industry through short-term or long-term property rentals.
Infrastructure and Services: Los Gigantes and its surroundings boast well-developed infrastructure with access to shops, restaurants, pharmacies, golf courses, and other services. This adds value for investors aiming to provide comfort and accessibility to their tenants or buyers.
However, it’s important to realize that prior to any real estate investment, it’s crucial to conduct thorough market research, consult with local experts, and consider factors such as regulations, tax implications, and market stability.
What Could be the Advantages for an Investor Purchasing an Established Apartment Rental Business? (10-unit complex)
Acquiring an already established apartment rental business can offer several advantages for an investor. Here are some important factors to consider:
Immediate Income: With an established business, you can start earning immediately. Rentals from the existing 10 apartments can provide a steady income without the need to build a business from scratch.
Existing Clientele: The existing business likely has a stable clientele and a reservation system. This means you won’t have to seek new customers from the beginning; you can leverage the existing base of renters who likely return each year.
Established Reputation and Ratings: If the business has been successful over the long term, it probably has a good reputation and positive guest ratings. This can attract additional rental interest and contribute to a strong reputation for your business.
Proven Operational Model: Purchasing a functioning business gives you a proven operational model that already works. You can draw inspiration from and adopt efficient practices the previous owner used, saving you time and effort in searching for and testing new strategies.
Expansion Possibility: If you decide to expand the business, the existing base of apartments provides flexibility and growth potential. You can add more units to your offerings and increase your income and market share.
While there are several advantages, it’s still essential to conduct thorough due diligence and evaluate the business’s condition, including financial results, rental potential of the properties, legal aspects, and contracts. Additionally, you should consider the location and competition in the area to ensure there is a stable demand for apartment rentals and that the business has long-term potential for success.