Ribelles Comíns - Estudio C

We present a new investment opportunity from our flipping model pipeline: The Ribelles Comín Project.

This is a new opportunity within our "flipping" model, a new line of more dynamic projects with higher capital turnover and attractive returns for our investors. 

You can read more about our flipping model here, and find a summary of what the Ribelles Comín Project will entail here.

The entire project consists of the complete transformation of a commercial space into four independent studio apartments, each designed to offer all the comforts of a regular home.

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

These studios are designed to provide an attractive investment option, especially for the investor who will purchase the property once it is fully completed.

This is a highly demanded product with limited supply: a fully renovated home, suitable for 2 guests, in an excellent location, and at a highly attractive price, making it accessible to any investor.

Why invest in converting commercial spaces into residential units?

The conversion of commercial premises into residential units represents a highly profitable investment strategy, especially in today’s real estate market. This model allows us to leverage key trends such as urban growth and the increasing demand for affordable housing.

• Competitive Market Price

The sale price of €99,540.41, after renovations and including furniture, remains below the market values in the area. This results in a price per square meter that is 8.04% lower than the current market value of similar properties. This gives us a competitive advantage over comparable properties and increases the chances of achieving a quick sale or a high occupancy rate in case of rental.

• Exceptionally High IRR

The combination of a reduced target price and the potential income generation after renovations allows us to project an IRR of 10.54%. This means that significant returns can be expected both in cash flows and in the asset’s appreciation.

• Higher Market Appreciation

In urban areas, studios tend to appreciate more due to their high demand and the trend among developers to prioritize building smaller, more affordable units. This ensures solid returns not only through rental income but also through long-term asset appreciation, with an estimated appreciation of 15% that could be exceeded at the time of sale.

• Higher Total Income per Square Meter

Although smaller, studio apartments tend to generate proportionally higher income per square meter than multi-bedroom apartments. This is because each studio is rented as a complete unit, allowing for maximum income by dividing a space into multiple independent units instead of rooms within a single lease agreement. Each studio is expected to generate an annual rental income of €8,400.

• Appeal to Various Tenant Profiles

Studios attract a diverse audience, from students to remote workers, expatriates, and young couples. This broad range of potential tenants ensures consistent demand, even during times of economic uncertainty, as these units tend to be more affordable.

Investing in these studio apartments is a strategic decision due to the high level of demand, competitive rent per square meter, and ease of management. Additionally, they offer flexibility and appeal to a wide range of tenants, making them an ideal choice for maximizing profits in the real estate market.