Despite the pandemic, Spanish investors still invest in the real estate market. The real estate market is still strong and active against all confinements and restrictions. The market is expectant, and we expect sale and purchase prices to rise in the coming months. On June 10, several real estate market experts attended the Investor Session “Nuevas Oportunidades Inmobiliarias” (New Real Estate Opportunities), organized by Fellow Funders. The session brought together Re-aviva, Clap Design, and Atlas Real Estate, who offered their views on the global real estate vanguard and offered all their knowledge and expertise to the attendees.
House Flipping: Veni, Vidi, Vici
The development of e-commerce and e-banking led to the closure of thousands of commercial properties in urban centers. These properties are often situated in areas where housing demand is strong, but non-residential assets are in short supply. House flipping helps redevelop such premises for residential use and find a profitable niche. Re-aviva stands out for its expertise in this type of transaction. The company sees an opportunity for redevelopment and use change in areas where residential properties have a higher value than commercial properties to offer high yields to investors.
Firstly, the company conducts a feasibility study of the property, complying with municipal technical requirements and establishing quality filters. The aim is to convert commercial premises into attractive living spaces. For this reason, Re-aviva rubs shoulders with Clap Design professionals.
As a result, the company develops habitable housing with original and attractive spaces for its tenants. Moreover, investors would have a solid point of equilibrium to face their profitability, considering the price at which Re-aviva acquires the commercial premises.
Coliving: a new type of shared housing among professionals in the same sector. The idea emerged in Silicon Valley in response to the shortage of housing supply caused by the increasing influx of young professionals to work in San Francisco.
Coliving takes the concept of student apartments a step further and merges it with coworking. Tenants would not only share common spaces. Since they would work in the same companies and sectors, they would also share work and life experiences.
We are talking about a real revolution in access to housing, spreading to different parts of the world. This system is increasingly present in countries like the United States, Germany, the United Kingdom, Indonesia, and Japan. However, its implementation is slower in Spain. Since 2015, one can already see the first co-living projects in areas of Madrid, Valencia, or Andalucía. However, there are already very ambitious projects under construction, ranging from 20,000 to 30,000 square meters.
Fellow Funders and the future of the real estate
Fellow Funders has opened a new Real Estate division dedicated to valuing and offering the most promising real estate projects. Our funding rounds rely on direct investment in Special Purpose Vehicles (SPVs), specifically created for the project (liquidated once the property is sold). We ensure that our investors receive their returns with total security.
There are currently three rounds of real estate vanguard. Modular Home, a company dedicated to building modular homes; Prontopiso, which brings the latest digitalization trends in the sector; and Re-aviva, which offers the latest trend in the industry: House Flipping.
House Flipping’s first-round closed in less than a week, demonstrating the investor appetite for cutting-edge real estate, and, as such, we have more funding rounds in the pipeline that will be coming out in the coming months. Stay tuned!