Calle Lucena- Estudio B

This opportunity will be opened for investment on January 3rd, 2025, at 12 pm.

We present the second of our five planned flipping investment opportunities: Project Lucena.

You can read more about our flipping typologies here, and an overview of what Project Lucena entails here.

The complete project involves acquiring two adjoining commercial spaces to create five independent studios, each with its own cadastral reference. 

We will add value to the project through renovation, change of use, and horizontal division. As usual, we will furnish the property and offer a turnkey product for the final investor.

With these studios, we aim to provide an attractive investment product targeted at the final investor; that is, the one who will acquire the property once it is completed.

It is a product with very high demand and limited supply: a fully renovated home, with capacity for 2 guests, in an excellent location, and at a very competitive price, making it accessible to any investor.

This is the second operation in our "flipping" model, a new line of more dynamic projects with higher capital turnover and attractive returns for our investors. The primary goal is to achieve a sale in the short term.

Why invest in transforming commercial spaces into homes?

Converting commercial spaces into homes represents an investment strategy with great potential for profitability, especially in today's real estate market. This model allows us to leverage key trends such as urban growth and the increased demand for affordable housing.

• Competitive Market Price

The target price of €77.019, once renovations are completed and furniture is included, remains below market values in the area. This not only ensures an advantage over comparable properties but also increases the likelihood of a quick sale or high occupancy if rented out.

• Exceptionally High IRR

The combination of a reduced target price and the potential for income generation after renovations allows us to project an IRR of 11,5%, a remarkable figure in the real estate sector. This means significant returns can be expected in both cash flow and asset appreciation.

• Greater Market Appreciation

In urban areas, studios tend to experience greater appreciation due to high demand and developers' tendency to prioritize building more compact and affordable units. This ensures a solid return not only in rental income but also in long-term asset value, with an estimated appreciation of 15% that can be surpassed at the time of sale.

• Higher Total Income per Square Meter

Studios, though smaller, tend to generate proportionally higher income per square meter than multi-room apartments. This is because each studio is rented as a complete unit, maximizing income by dividing a space into multiple independent units rather than rooms within a single contract. Each studio is estimated to generate annual rental income of €8.400.

• Appealing to Diverse Profiles

Studios attract a diverse audience, from students to remote workers, expatriates, and young couples. This diversity of target clients ensures constant demand, even in times of economic uncertainty, as these units are typically more accessible in terms of price.

Investing in these studio-type apartments is a strategic decision due to high demand levels, competitive rent per square meter, and ease of management. Additionally, their flexibility and appeal to a wide range of tenants make them an ideal option for maximizing profits in the real estate market.