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Cádiz has become a highly desired destination for travelers in recent years, both foreign and domestic. 

The gastronomy, the quality of the accommodations and the extensive list of tourist sights the city offers are the main attractions for travelers from all over the world. 

According to the annual TripAdvisor study, the largest travel review portal, Cádiz is well rated for accommodations, with 4.21 points. 

Chart 1: TripAdvisor

This great reception of the city by tourists causes income in the tourist apartment sector to increase. And we can see it reflected in the following chart, which analyzes the last three years.  As we can see, the figures are very high, especially if we compare the year 2018 with 2016, when there was an increase of €7,923,443. 

It is true that, alongside the increase in demand, new tourist apartments have appeared, but this has not prevented Cádiz from continuing to increase its income, although to a lesser extent. If we compare 2016 with 2017, there was an increase of €5,239,932, compared with the €2,683,511 more obtained in 2018 compared with 2017.  

Chart 2: Brickstarter

In 2018, a total of €11,533,685 in income was collected from tourist apartments, spread across the four seasons of the year. However, as everyone knows, the most income is obtained in the summer season with €5,525,329, which covers the months of July, August and September. 

Chart 3: Brickstarter

But income does not increase equally in all areas of Cádiz, so below we can see it by zip code. The zip code 11002 was the one with the highest income in 2018 from tourist apartments (€1,884,259), followed by 11003 (€1,782,428).

Furthermore, in this case income is related to occupancy, since zip code 11002 has the highest occupancy, at 60.13%.  By contrast, 11003 is not second in occupancy; 11011 is. This happens because the average price per night will be lower than in the other, more central zip codes. So they have higher occupancy but lower income, and what is advisable is to maximize income with a balanced occupancy. 

Chart 4: Brickstarter

For these reasons, Brickstarter has analyzed the tourist apartment sector in Cádiz. The aim is to launch a new opportunity in this city that is so beloved by tourists from all over the world. In this case, it would be the third in this city. 

It is a one-bedroom apartment with capacity for 5 guests.  Its main features are summarized below.

• It is right in the center of Cádiz (Distrito Centro). Surrounded by all kinds of leisure, dining and other services. It is also 100 m from the Torre Tavira, 500 m from the most in-demand beach in Cádiz (La Caleta) and 400 m from the Teatro Falla. 
• In addition, it is located in zip code 11001; if we look closely, it is not one of the zip codes with the highest income and occupancy, but this is not a problem, since it is separated from zip code 11002 by just one street. So this small difference should not change anything for tourists, and we therefore estimate income and occupancy similar to those of zip code 11002, with no guarantee that they will be reached. 
• The type of apartment is the most in demand among travelers who choose Cádiz as a tourist destination. It has 1 spacious bedroom with a bathroom and dressing room, a living-dining room and an eat-in kitchen. But one of the attractions of the apartment is its two terraces. We will prepare them with great care so that our guests have a picture-perfect vacation. It is worth noting that it is very difficult to acquire an apartment with a terrace and it is one of the most sought-after requirements among tourists today. 
• It was built in 2007, so it is a semi-new apartment, which we will adapt into a tourist apartment with good decoration. With this we aim to improve occupancy and income, without the result being guaranteed. The decoration and equipment could add value to the property, since it is not currently operated as a tourist rental. 
• The property is launched for investment at €176,139.05 and has an estimated IRR of 9.14%.

These are the data and features we have taken into account; each investor must assess the risk. Below, you can see more information about our opportunity in Cádiz.

Past or estimated returns do not guarantee future returns. Investing involves a risk of total or partial loss of the invested capital.