real estate tourism

The Relationship Between Real Estate and Tourism

Here, we'll embark on a trip to unravel the symbiotic relationship between real estate and tourism!

Welcome, fellow explorers, to the intriguing intersection of two dynamic realms - real estate and tourism.

Picture this: the bustling cityscape dotted with architectural marvels, serene beachfront properties, and charming countryside retreats.

In this blog post, we embark on a journey to unravel the symbiotic relationship between real estate and tourism, where each element complements and shapes the other in a fascinating dance of supply and demand.

The Dance Begins: Tourism Boosts Real Estate

(Photo from CGTN)

In the grand ballroom of economic ecosystems, tourism takes the lead as a charming partner that ignites the spark in the real estate market. When tourists flock to a destination, they bring with them a surge in demand for accommodation, whether it's luxurious hotels, cozy bed and breakfasts, or trendy vacation rentals. This influx of visitors doesn't just fuel the hospitality industry but also sends ripples through the real estate market.

Consider the iconic cityscapes around the world. The allure of cultural landmarks, bustling streets, and vibrant nightlife draws tourists like moths to a flame. As a result, property values in these prime locations skyrocket, prompting real estate developers to seize the opportunity and build high-rise condominiums, boutique hotels, and chic apartments. The demand for real estate in tourist hotspots becomes a driving force for urban development, transforming skylines and neighborhoods into dynamic, sought-after hubs.

Moreover, the tourism effect is not confined to metropolitan areas. Charming coastal towns, picturesque countryside retreats, and historic villages find themselves in the spotlight as travelers seek unique and authentic experiences. This surge in demand for properties in these hidden gems revitalizes local real estate markets, breathing new life into forgotten corners of the world.

The Tango of Development and Infrastructure:

As the music of tourism plays on, real estate and infrastructure execute an intricate tango. The need to accommodate an increasing number of visitors propels destination cities and towns to invest in infrastructure development. Improved transportation, upgraded public spaces, and enhanced amenities become the jewels in the crown of tourist-centric locales.

Real estate developers, keenly aware of the rising demand for properties in these transformed areas, join the dance by investing in ambitious projects. Waterfront promenades, cultural districts, and state-of-the-art entertainment venues become the stage upon which the real estate market shines. It's a symbiotic relationship where the demand for tourism fuels development, and development, in turn, enhances the allure for both tourists and potential property buyers.

The AirBnB Waltz:

(Photo from Chegg)

In this modern age, the dance floor witnesses a unique partner - the sharing economy. Enter Airbnb, the disruptor that brought a fresh tempo to the real estate and tourism symphony. Homeowners and property investors suddenly had a platform to showcase their spaces to a global audience, offering tourists a more personal and authentic experience.

This game-changer not only expanded the options available to tourists but also sparked a revolution in the real estate market. Property owners found new avenues for income, whether it was renting out a spare room or transforming an entire property into a vacation rental. Cities witnessed a surge in short-term rental properties, challenging traditional notions of accommodation and pushing real estate markets to adapt to this evolving landscape.

The Challenge of Overtourism:

(Photo from The Guardian)

In any dance, missteps are inevitable. The real estate and tourism waltz is no exception, facing the challenge of overtourism. When the demand for a destination becomes overwhelming, it can lead to detrimental effects on both the environment and the local community.

Skyrocketing property prices, crowded streets, and overdeveloped landscapes are symptoms of overtourism, prompting destinations to reevaluate their steps. The delicate balance between catering to tourists and preserving the unique charm of a locale becomes a crucial consideration for both real estate developers and local authorities.

To conclude, as we bid adieu to the captivating dance floor of real estate and tourism, it's evident that this relationship is not a one-size-fits-all affair. Each destination has its own rhythm, influenced by factors such as culture, geography, and local policies. The symbiotic dance continues to evolve, shaping skylines, fostering economic growth, and creating unforgettable experiences for both tourists and locals alike.

So, whether you're a property enthusiast or an avid traveler, keep an eye on the ever-changing dynamics of the real estate and tourism tango. The next hotspot may be just a plane ride away, waiting to reveal its unique steps in this mesmerizing dance of development and discovery.

As always, thank you guys so much for taking the time to read this blog post - we here at Transactly are always grateful for the support! Stay tuned for more content coming every Monday, Wednesday, Friday, and Saturday.

We'd also like to list down the following sites that provided the inspiration for this blog post - go give them a read as well:

LinkedIn Pulse (1) - https://www.linkedin.com/pulse/how-real-estate-connected-tourism-what-its-importance-yasir-khan/

LinkedIn Pulse (2) - https://www.linkedin.com/pulse/real-estate-tourism-symbiotic-relationship-economic-roberts-castro/

Crown Asia: https://www.crownasia.com.ph/lifestyle-blog/how-does-tourism-affect-the-real-estate-market/

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Real Estate Investing in Top Tourism Cities Around the U.S.

At the onset of COVID-19, American investors had no idea the effects on the real estate markets, especially in cities dependent on tourism and hospitality. I wanted to take a moment to reflect on some popular tourist destinations to see how they have rebounded about 1.5 years into the pandemic.

Best Cities for Real Estate Investment

I love keeping tabs on various  labor metrics across the USA . Occasionally, I'll do a "Top 10" check quickly to see which submarkets around the country are the leaders in employment, labor force growth, unemployment, and labor participation. Markets strong in these areas tend to correlate with solid investment submarkets .

In November 2020, I published an article about  eight job markets defying the COVID-19 pandemic . These markets had lower unemployment than the national average and were in the Top 10 employment and labor force growth. 

The markets that had the best data surprised me. None were well-known cities such as San Francisco, Austin, Seattle, Chicago, or New York City. Rather, MSAs in Utah, Wisconsin, Louisiana, Mississippi, and Idaho were outshining everywhere else.

Unfortunately, the cities hosting the most renowned tourist attractions were nowhere to be found.

Fast forward to August of 2021, and you review the “Top 10” year-over-year (YOY) employment-growth markets, you see primarily markets dedicated to tourism.

Highlights include:

Reno and Las Vegas, Nevada (gaming/entertainment destinations)

Ocean City and Atlantic City, New Jersey (boardwalk/beach and gaming/entertainment destinations)

Barnstable Town and New Bedford, Massachusetts (Cape Cod and Buzzards Bay)

Honolulu and Maui, Hawaii

Even slightly outside of the Top 10, you have:

Naples, Florida

Orlando, Florida (home of Walt Disney World)

Sarasota, Florida

Miami, Florida (a few slots below Sarasota)

Los Angeles, California (home of Hollywood and Disney Land)

Randomly, Flint, Michigan, was sprinkled into the Top 10 for good measure!

What it Means

Any real estate investor in any of the bulleted markets above knows that gaming, nightlife, theme parks, bucket list beaches, and weather make them fantastic tourist destinations. This allures people from all over the country and world, creating jobs to run attractions, lodging, tours, transportation, dining, and more. 

These are the same jobs that support the multifamily rental markets that make apartment investing a feasible and profitable endeavor. People working in the tourism industry need places to live. In the future, successful investments in these markets will depend on waning COVID cases, reopening closed businesses, and limited restrictions that support local businesses of all sizes.

Are We In the Clear?

Are tourist-heavy cities ripe for real estate investment and development? Unfortunately, it's too early to say. Variants of COVID are becoming more prevalent, and many of the cities mentioned above are rolling out renewed mask mandates and limiting indoor capacities. Nobody can say how COVID-19 has evolved and what this can mean for travel and tourism.

While the YOY employment growth is impressive, these were also some of the hardest-hit cities regarding layoffs. The recent explosion in employment is exacerbated by how far employment fell during peak restrictions. For example, in Las Vegas, Honolulu, and Atlantic City, unemployment increased by 30% to 35% in the spring of 2020!

Looking at the 2-year employment growth, most cities are still in negative territory. While there is progress as of late, there is still work to do.

Many U.S. cities are still climbing out of a hole. With that being said, it is a breath of fresh air to see labor recoveries in the main tourist hubs of America. Ideally, with time, tourism will recover 100% of the jobs lost in 2020, but we are likely a few years away from that happening. I will continue to monitor this in the upcoming months.

Markets supported by tourism have kept me busy working with real estate investors/developers over the last few years. Getting these cities’ labor statistics back on track will be essential for the economy's overall health.

Summarizing Best Cities for Multifamily Investing

This information was from  Tactica's Bureau of Labor Statistics Dashboard . You can learn more about our interactive tool here if you want to check in on your cities of interest. Data is from BLS.gov and is updated in real-time as new data is published.

Welcome to the Blog

I’m Ike, the owner of Tactica RES®. If you’re looking to improve your multifamily analysis processes, you’re in the right place.

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Real Estate Tourism: The next step in the country’s tourism evolution

Source: El Nuevo Diario  by Juan Feliz

Over the years, the Dominican Republic has established itself as a solid and dominant tourist destination in the entire region. It is no coincidence that in recent years it has become common to see world-renowned figures choose our land as the venue for their vacations. In short, our tourist boom is not by chance; rather it is due to the innumerable amount of natural settings of extraordinary beauty in the country, such as beaches, rivers, mountains, valleys, and sometimes even deserts. It could be said without fear of misunderstanding that the slogan “The Dominican Republic has it all” fits like a glove.

It is an unquestionable truth that real estate tourism is the perfect complement to hotel tourism in most countries. This wealth-forging entity generates thousands of indirect jobs and also allows the foreign investor not only to invest in our country but also to be a regular visitor to our nation. From then on, this real estate tourism investor becomes a perennial activator of the economy.

The truth is that the Dominican Republic has a large number of tourist destinations that have more than enough conditions to compete in the real estate tourism sector at an international level; There are clear examples of this, such as the Cap Cana destination city project, which coincidentally celebrates its 20th anniversary this year.

Cap Cana ho is establishing itself as one of the most reliable destinations and perhaps the main standard-bearer in the region of investment in real estate tourism, with a range of offers, ranging from sumptuous villas to luxury apartments, for which An investment of more than 3,000 million dollars was made to date.

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The Impact of Tourism Boom on Commercial Real Estate Landscape

Commercial real estate is rising in popularity among investors, with tourism being an important factor to consider. Tourist spending has a direct impact on the value of investments and can provide unique opportunities for savvy investors who are looking to make a profit off their commercial properties. In this blog post, we’ll take a look at how tourism affects different types of commercial real estate investments, from hotels to restaurants and everything in between.

We’ll review key statistics related to tourist activity as it applies to business investment, discuss strategies for making returns on your property investments, and explore opportunities presented by both domestic and international tourism markets. Read on to learn more about the powerful influence of tourism when it comes to investing in commercial properties!

Several factors contribute to the success of a commercial real estate investment property, and one crucial aspect to consider is tourism. Tourism not only attracts more investors to a destination but also drives up property values, intensifies competition for prime real estate locations, and fosters further development. By taking tourism into account, investors can make informed decisions that maximize their potential for success in the tourism real estate market.

Key Takeaways

• Tourism and commercial real estate are deeply intertwined, with each influencing the other’s growth, challenges, and opportunities.
• While tourism can boost commercial property values and demand, over-reliance can lead to overdevelopment and strain on resources.
• In 2022, the U.S. saw significant growth in outbound tourism with a market value of $101.7 billion. The Travel & Tourism industry is projected to reach $190.4 billion in revenue by 2023. Additionally, inbound visitors spent $12.6 billion on travel and tourism-related activities in the U.S., a 105% increase compared to May 2021.

The Influence of Tourism on Commercial Real Estate: A Transformational Lens

Tourism significantly contributes to shaping the contours of commercial real estate. The evolution of this impact over time reveals intriguing insights into the symbiotic relationship between these two sectors. By delving into historical context and specific city examples, we can better understand this dynamic.

Historically Shaped By Tourism

The influence of tourism on commercial real estate has been a consistent theme throughout history. Tourism influx often boosts local economies, translating into growth in the commercial real estate market. As tourism-driven demand for services like accommodation, food and beverage, and retail increases, there’s a proportional rise in related commercial real estate’s value and development.

City Transformations by Tourism

Cities and regions the world over have experienced dramatic transformations, largely driven by thriving tourism industry. Take Barcelona, for instance. The Spanish city has seen a vibrant evolution in its commercial real estate since the 1992 Olympics – a colossal event which marked the city on the global tourism map.

It resulted in the significant development of hotels, restaurants, and retail spaces. Similarly, Dubai’s strategy of positioning itself as a global tourist destination has led to rapid tourism development and the meteoric rise of its commercial real estate sector.

The Tsai Research: Built Tourism Resources’ Influence

According to a research piece by Henry Tsai from The Hong Kong Polytechnic University, there is a notable correlation between tourism facilities and property value. Initial studies indicated a positive effect of natural resources on the value of nearby properties. Lately, scholars have expanded their focus on ‘built’ tourism resources, such as resorts and sports facilities.

Their influence on both housing prices and surrounding property value is increasingly acknowledged as these constructed attractions not only draw tourists but also promote the areas as desirable locations for commercial activities. The influx of tourism enhances demand for services and goods, which in turn stimulates the local commercial real estate market. Be the focus natural or built, the influence of tourism on commercial real estate remains compelling.

Property Types

Tourism bears a significant impact on diverse segments of commercial real estate, helping shape the demand and value of various property types. Here are some areas that most directly reap the benefits of the tourism sector’s dynamism:

Hotels and Resorts: Beneficiaries at the Forefront

When it comes to tourism development’s immediate effects, hotels and resorts usually lead the charts. These properties serve as the mainstay for tourists and handle the primary demand created by the influx of visitors. The growth of tourism directly correlates with the expansion and success of these hospitality establishments.

Retail Spaces: Meeting Tourist Shopping Desires

With tourism comes the inevitable surge in retail activity. From standalone shops to grand shopping malls and bustling local markets, retail spaces distinctly benefit from tourism. These establishments cater to tourists’ unique shopping needs, offering local crafts, brand-lined offerings or even mundane necessities. The growth of retail spaces is undeniably linked to the consumption habits of tourists.

Restaurants, Cafes, and Entertainment Venues

Food & beverage and entertainment locales substantially gain from a thriving tourism sector. Tourists exploring local cuisines and cultures inevitably frequent restaurants, cafes, and other entertainment venues. These popular hangouts become highlights of the travel experience, leading to their prosperity in regions with high tourist traffic.

Cultural Spaces: Showcasing Artistic and Historical Wealth

Cultural establishments such as museums, art galleries, and theaters also experience a positive ripple effect. Tourists are often drawn to these cultural hotspots to engage with local history, art, and culture, leading to boosted activity and revenue for such properties.

Mixed-Use Developments: A Composite of Needs

Mixed-use developments, which weave together residential, retail, and recreational spaces, also see an evolution propelled by tourism demand. These multifunctional properties cater to a variety of tourist needs, encapsulating accommodation, shopping, dining, and entertainment under one roof.

The demand and success of these developments often echo the ebb and flow of tourism trends. In 2022, the U.S. outbound tourism market was valued at US $101,697 million , while revenue in the Travel & Tourism market is projected to reach $190.40 billion in 2023. Moreover, inbound visitors spent $12.6 billion on travel to, and tourism-related activities in the U.S., up 105% compared to May 2021.

The impact of tourism extends its hands to various segments of commercial real estate. From hospitality-focused real estate like hotels and resorts to retail spaces and cultural establishments, they all tie their growth and success to the throbbing pulse of the tourism industry.

Investment Dynamics in Tourism-Driven Real Estate

The lure of tourism-centric properties transcends mere interest, creating a broader canvas filled with nuanced trends, key influencing factors, and potential risks and rewards. Through illustrative case studies, we can unearth successful narratives of tourism-driven real estate investments.

Investment Trends in Tourism-Driven Real Estate

The investment landscape of tourism-oriented real estate has witnessed noteworthy shifts and turns. Investment interest has been steering towards mixed-use developments in recent years, owing to the broad range of services they offer, making them highly attractive to tourists. Eco-tourism developments also have seen a surge in interest, aligning with the global rise in sustainable travel trends.

Furthermore, digitally-driven concepts such as home-sharing platforms have unveiled an alternate route for individual investors to tap into tourism’s profitable potential, with properties in prime tourist locations garnering substantial returns.

What Draws Investors to Tourism-Centric Properties

The chief allure for investors in tourism-centric properties lies in the potential for robust return on investment. Tourism hubs tend to sustain high occupancy rates year-round, translating into steady income streams. Furthermore, these locations often see appreciable property value growth, offering the prospect for capital gains in addition to rental income.

The vibrant and varied needs of tourists have given rise to innovative property types, offering investors plenty of options to match their specific risk profiles, investment goals, and interests.

Risks and Rewards of Investing in Tourist Areas

Investment in tourism-oriented real estate is associated with a unique risk-reward matrix. High footfall in tourist areas can yield lucrative rental returns and, over time, an increased valuation of the property. However, this also exposes investors to risks such as seasonal variations in footfall or unforeseen global events, like pandemics.

Property maintenance costs can be elevated due to high usage, and intensified regulations and licensing requirements associated with tourism also add to the complexity. However, these risks are often offset by the potential for consistently high demand, especially in well-known or burgeoning tourist destinations.

Illuminating Success Stories of Tourism-Driven Investments

Various successful cases in tourism-driven real estate investments worldwide underscore their potential. The consistent growth of mixed-use developments in Dubai, for instance, spotlights a winning formula. Combining luxury residential spaces with retail and leisure facilities, these properties are an irresistible draw for tourists, resulting in attractive and sustained returns for investors.

Another example is Orlando, Florida, renowned for its enchanting theme parks. The city’s high visitor influx has fueled massive success in the vacation home rental market, making real estate investment and tourism investment here a fruitful venture.

In sum, tourism-driven real estate investments offer rich prospects. By understanding the underlying trends, attractiveness, risk-reward trade-off, and drawing valuable insights from successful investments, investors can be well-positioned to capitalize on the growth of tourism’s love affair with real estate.

Seasonality of Tourism

The ebb and flow of tourist arrivals, occasioned by the cyclical nature of tourism, wield substantial influence on property prices and demand, challenging the commercial real estate sector to adapt and devise ingenious strategies for seasonality.

Cyclical Tourism and Its Impact on Property Demand

Tourism, by nature, experiences peaks and valleys, often driven by seasons, and sometimes, by factors like events and school holidays. These oscillations have significant implications for the real estate industry. Peak seasons typically bring about high demand, potentially pushing property values up and boosting the overall business environment. However, during lulls, reduced visitor numbers may lead to lower property demand, potentially affecting profitability and occupancy rates.

Weathering the Off-Peak Seasons: Strategic Approaches

Managing off-peak seasons effectively is crucial to maintaining profitability in the commercial real estate sector. An emerging strategy is to offer discounted rates during low seasons to attract tourists looking for less crowded, cost-effective travel experiences. Likewise, property owners often schedule routine maintenance and renovation during these periods to ensure optimal service during high seasons.

Furthermore, targeting different tourist types can also help. For instance, marketing luxurious, serene retreats to older tourists or digital nomads during off-peak months might counterbalance the reduced influx of holiday tourists.

Leveraging Events, Festivals, and Attractions

Special events, festivals, and local attractions play a vital role in driving year-round tourism. Cities that host significant events, such as music festivals, sports tournaments, or international conferences, often witness consistent visitor numbers irrespective of the season.

Likewise, regions with unique attractions such as vineyards, historical sites, or theme parks also typically enjoy sustained footfall. Leveraging these attributes to diversify and stretch the tourist season is an effective way to combat the cyclical downturns in tourism.

In summary, the undulations of tourism seasons present both challenges and opportunities to the commercial real estate sector. A shrewd understanding of these cycles, effective off-peak as well as boom property management strategies, and capitalizing on local attractions and events can instill resilience in property demand, ensuring healthy returns throughout the year.

Positive Outcomes of Tourism on Commercial Real Estate

Tourism, with its power to invigorate economies, brings about an array of beneficial impacts on commercial real estate. An appreciation of property values, sustained demand for specific property types, and the birth of new business possibilities are among the many positive outcomes.

Appreciation of Property Values

An influx of tourists often translates into a thriving local economy. This heightened economic activity can lead to an increase in the value of commercial real estate. Prime locations and well-maintained properties, especially those that cater directly to tourists such as hotels, restaurants, and retail spaces, are likely to see the most significant appreciation in values. This appreciation benefits property owners and investors, contributing to rental prices and higher returns.

Sustained Demand for Certain Property Types

Tourism can boost demand for specific types of commercial real estate. Properties like hotels and other lodging establishments see increased, sustained usage due to tourists. Retail spaces and food & beverage establishments also experience a surge in demand as tourists shop for souvenirs, dine out, and explore the local culture. This demand often remains resilient, even during economic and housing price fluctuations, given the standing allure of travel for many.

Creation of New Business Opportunities

Tourism often leads to the creation of new business opportunities, contributing to the dynamism of the commercial real estate sector. For instance, growth in tourism can incentivize the development of unique property types, such as glamping sites, boutique hotels, or experiential retail stores.

Similarly, it has the potential to transform real estate usage – an old factory might be repurposed into a thriving cultural market or a series of abandoned buildings turned into unique vacation rentals. These new uses energize the property market, attracting innovative investors and fostering a continuously adaptable real estate landscape.

The influence of tourism on commercial real estate is profound and positively transformative. Through the appreciation of residential property values itself, the enhanced and sustained demand for certain property types, and the birth of new business opportunities, tourism emerges as a pivotal pillar in the prosperity of the commercial real estate sector.

Challenges and Negative Impacts of Tourism on Commercial Real Estate

While tourism undeniably shoulders the prosperity of the commercial real estate sector, it can also foster unique challenges and negative impacts. Seasonality, the potential for overdevelopment, and the strain on local resources and infrastructure encapsulate some of the pressing concerns.

Seasonality and Dependence on Tourism

The cyclical nature of tourism causes fluctuations in demand for commercial properties. Peak seasons bring inundating tourism activity, while off-peak times often see low property usage and income. This seasonality could lead to financial instability for businesses unable to effectively manage these cycles.

Furthermore, over-reliance on tourism creates vulnerability. Sudden global events, economic downturns, or shifts in travel behavior can lead to notable declines in visitor numbers, impacting property demand and occupancy rates.

The Risk of Overdevelopment

Driven by the prospect for robust returns, real estate developers and investors might overextend, leading to an oversupply of tourism-oriented properties. Overdevelopment could result in excessive competition, diminishing profits, and wasted resources. Moreover, abandoned constructions or underutilized properties impact the aesthetic appeal and overall environment of a region.

Strain on Local Resources and Infrastructure

A tourism boom often demands more power, water, waste disposal, and transportation services, placing a strain on local resources and infrastructure. Not only does this raise concerns about sustainability, but it can also lead to deterioration in the quality of life for local residents.

Commercial properties might also face increased costs for utilities and services during high-load periods. Moreover, enhancing infrastructure to meet tourist demands can raise property and construction costs, potentially less housing affordability and inflating market prices.

In conclusion, while tourism is largely beneficial for commercial real estate, it does come with its set of challenges. Understanding and addressing these issues—seasonality, overdevelopment, and the strain on the local community, infrastructure and resources—is crucial to sustainably harness tourism’s potential for commercial real estate success.

Case Studies: Tourism and Commercial Real Estate

Tourism’s impact on commercial real estate is conspicuous in various cities and regions worldwide. Let’s delve into a few examples, outlining their experiences and lessons learned.

Case Study 1: Dubai, UAE

Dubai, a global tourism hub, has commercial real estate significantly impelled by tourism. The city’s transition from an oil-based economy to one focused on tourism and real estate showcases how embracing tourism can revitalize an entire region.

Lesson Learned: Dubai demonstrates the value of diversification in property types — luxury hotels, mega malls, unique attractions like the Burj Khalifa, man-made islands, and the development of trade and exhibition centers. This diversity attracts a diverse range of tourists and secures different income streams, mitigating risks associated with over-reliance on a single property type or tourist demographic.

Case Study 2: Barcelona, Spain

The Catalan city is renowned for its lucrative tourism industry. However, the boom in tourism led to an oversupply of short-term holiday lets, negatively impacting the local housing market and community.

Lesson Learned: Barcelona’s experience underscores the importance of regulatory measures in maintaining balance in commercial real estate. The city has imposed restrictions on short-term lets and is implementing strategies to control tourism, reflecting the need for careful management and regulation in cities profoundly impacted by tourism.

Case Study 3: Orlando, Florida, USA

Orlando, with its vast array of amusement parks, consistently attracts substantial tourists, causing boom properties in tourism related income for commercial real estate – hotels, vacation rentals, retail, and food & beverage establishments.

Lesson Learned: Orlando’s experience underlines the importance of having major, year-round attractions to maintain consistent tourist influx, mitigating the impact of seasonality. The city also exemplifies how well-managed tourism growth can sustain a vibrant real estate market.

These case studies from Dubai, Barcelona, and Orlando illustrate various facets of tourism’s impact on commercial real estate. They emphasize the benefits of diversified offerings, the need for controlled growth, and potential strategies for seasonality management. By absorbing these lessons, stakeholders can formulate policies and strategies that embrace the benefits of tourism while mitigating its challenges.

Future Trends in Tourism and Commercial Real Estate

Several evolving trends give a glimpse into the future of tourism and its impact on commercial real estate. Sustainable tourism, the rise of virtual tourism and remote work, and shifts expected in the post-pandemic world emerge as significant themes.

The Challenge of Sustainable Tourism

Attuned to growing global environmental concerns, sustainable tourism is set to play a vital role in shaping the commercial real estate market. This concept builds upon the idea of developing and managing tourist spaces in a manner that respects local cultures, preserves the environment, and promotes socio-economic benefits for host communities.

Investors and developers will need to adopt eco-friendly design elements and operational practices, such as energy-efficient buildings, reduced water usage, and waste management systems. Green certifications may also become important selling points, adding value to properties.

The Emergence of Virtual Tourism and Remote Work

Virtual tourism, propelled by advances in technology like VR and AR, is promising an alternative travel experience. While it’s unlikely to replace traditional tourism, it may impact the demand for tourist-specific commercial real estate, especially tailored towards experiential tourism.

The rise of remote work culture has instigated a new trend of prolonged stays. Commercial properties, particularly serviced apartments and co-working spaces, would need to accommodate this new demographic, offering long-term stays with work-friendly environments.

Predictions for the Post-Pandemic World

The global pandemic has accelerated various trends and has prompted a reassessment of tourism’s role. As international travel normalizes, a rebound in tourism and subsequently, commercial real estate, is widely expected.

The emphasis, however, may shift towards localized, less crowded experiences, boosting rural and suburban real estate markets. Health and safety considerations will be paramount — properties offering contactless services, rigorous cleanliness protocols, and flexible booking policies would likely gain preference.

In conclusion, sustainable practices, the advent of virtual tourism and remote work, and adjustments ushered in by the pandemic are set to reshape the tourism-commercial real estate landscape. By staying abreast of these trends and adapting to them, the commercial real estate sector can continue to reap the benefits of a dynamic tourism industry.

The Impact of Tourism on Commercial Real Estate FAQs

How is real estate related to tourism.

Commercial real estate and tourism have a symbiotic relationship. As tourism drives demand for accommodations, attractions, shopping, and dining, it also impacts the development of commercial properties in these areas. In turn, well-managed commercial real estate helps attract and enhance the overall tourism experience, creating a cycle of mutual benefit.

Why does the Philippines need to develop tourism focused real estate?

The Philippines relies heavily on tourism as a significant contributor to its economy. Developing tourism-focused real estate can not only enhance the overall tourist experience but also provide additional revenue streams for the country. It can also create job opportunities and stimulate economic growth in areas that may not have been traditionally popular among tourists.

How does tourism affect the housing market?

The impact of tourism on the housing market can vary depending on the specific location and type of tourism. In some cases, an increase in tourism can lead to higher demand for short-term rentals, driving up housing prices, and reducing available long-term housing options. This can negatively affect local residents, making it more difficult to find affordable homes.

What are the impacts of the tourism industry?

The tourism industry can have both positive and negative impacts on the areas it affects. On one hand, it can bring in significant revenue, create job opportunities, and contribute to economic growth. On the other hand, it can also put pressure on local resources and infrastructure, cause overcrowding and strain relationships with local communities.

What is the biggest impact of tourism on the economy?

Tourism offers a significant advantage: the ability to generate revenue through foreign exchange earnings. When tourists spend money, it contributes to the income of the host economy. These funds can then be reinvested into the country’s economy, fostering further growth and development.

From the rise of virtual experiences to sustainable real estate tourism, the link between commercial real estate and tourism will be continuously evolving. Although there are numerous ways that tourism can impact real estate landscape and markets, all in all, it is clear that travel and commerce are distinctly interdependent. Significantly, this creates a unique set of challenges and opportunities for companies in both industries.

So if you’re interested in finding out more regionally-specific information, or wish to discuss strategies regarding how to best leverage this relationship for future success, make sure to call or schedule a free consultation with me at Tolj Commercial real estate. As an experienced real estate professional, I’m here to answer your questions and help you get the most out of your investment ideas.

Blog Articles Disclaimer

The information presented in articles on our website or affiliated platforms is exclusively intended for informational purposes. It’s crucial to grasp that this content does not constitute professional advice or services. We strongly recommend our readers to seek guidance from appropriately qualified experts, including, but not limited to, real estate and other attorneys, accountants, financial planners, bankers, mortgage professionals, architects, government officials, engineers, and related professionals. These experts can offer personalized counsel tailored to the specific nuances of your individual circumstances. Relying on the content without consulting the relevant experts may hinder informed decision-making. Consequently, neither Tolj Commercial Real Estate nor its agents assume any responsibility for potential consequences that may arise from such action.

Mike Tolj specializes in representing business owners and landlords in the leasing and sale of commercial properties. He has over 18 years of experience in the industry and knows how to get deals done quickly and efficiently. Mike is passionate about helping business owners and landlords alike achieve their real estate goals. He has a track record of achievement, having completed numerous transactions for his clients.

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Web searches show buyers in the U.S. favor some places in the Western Hemisphere when it comes to real estate.

By Michael Kolomatsky

In the realm of real estate dreams, 2020 and 2021 have been years like no others. Hungry for escape from the pandemic, who among us hasn’t fantasized about vacation homes, retirement or investment properties tucked among tropical flora or looking out on pristine ski slopes?

According to a recent study, prospective home buyers in the United States are looking hard at locations in North, South and Central America. By examining real estate-related words and phrases used in internet searches in the 50 U.S. states, Point2 , a Canadian company that studies property trends, was able to rank the popularity of destinations in the Americas. Three reports, completed in 2015, 2018 and 2021, each examined a year of searches (the latest covering the year ending Sept. 10, 2021), and revealed some changes over time, but mostly steady interest in particular areas.

Mexico was the most searched destination in 2021 and 2018, rising from fourth place in 2015. It makes sense, given its proximity, low cost of living and warm climate. It’s important to note, though, that mortgages are difficult to obtain in Mexico, and nearly all sales are handled in cash. Foreign buyers also face some restrictions when buying in proximity of a coast or border, with transactions in those areas completed through a Mexican bank trust or a Mexican corporation with the help of a lawyer.

Canada ranked second this year and in 2018, rising from seventh place in 2015, the greatest movement among all destinations in the top 20 since 2015. Foreign buyers currently face a few restrictions in Canada, and more may be on the way: Recently re-elected Prime Minister Justin Trudeau has vowed to ban foreign buyers for two years in an effort to cool rising prices set off by the pandemic.

Moving up from fourth in 2018 to second in 2021 was Costa Rica, where U.S. web searchers focused on the cities of Tamarindo, Jaco and Santa Ana this year. Costa Rica also has minor limits on real estate purchases by foreigners, 80 percent of which are from the United States.

Puerto Rico finished in fourth place in 2021, followed by Belize and the U.S. Virgin Islands. This week’s chart shows Point2’s top 20 real estate destinations in 2021 based on web searches from the U.S., and the average number of monthly searches for each.

Dreaming of the Americas

Where those in the 50 U.S. states are searching online most for real estate in the Americas.

Average monthly searches

Puerto Rico

U.S. Virgin Islands

Dominican Republic

Cayman Islands

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The State of Real Estate

Whether you’re renting, buying or selling, here’s a look at real estate trends..

Hiring a local to keep an eye on your weekend house  can give you peace of mind and keep small problems from becoming big headaches.

Are you a second-home person? A place outside the city might sound like heaven , but here are some things you should consider first.

The pandemic upset a delicate balance of part-time and full-time residents in a community in the Poconos, sparking a debate over short-term rentals .

After a lifetime of seeking out tiny spaces, she finally found a keeper : a former barbershop in an old mill village in North Carolina.

A lot of change is happening in the housing market. Here’s the outlook .

With a landmark legal settlement  poised to upend a decades-old norm that has dictated who pays real estate agents and how much, economists, agents and lenders are beginning to worry that the burden could now be on first-time home buyers .

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What Does Tourism Have to Do With Real Estate & Economic Development? Everything!

Communities need to collaborate to make tourism a common goal.

By Paul Adler

Let me start with a conclusion: Tourism and leisure economic sectors affect and influence property values in a positive way, but with caveats.

Let’s unpack what “tourism” actually means.  According to Google tourism comprises the activities of persons travelling to and staying in places outside their usual environment for not more than 12 consecutive months for leisure, business and other purposes.

Further, tourism used to be defined in these types: Leisure, Business, Sports and Adventure, now modern definitions include: Sustainable, Food, Experiential and Wellness tourism.

Traditional understandings of tourism had been simple.  Tourism accommodation means business for the real estate industry. As a concept, tourism accommodation can generally be defined and understood in terms of demand . When tourists requires overnight accommodations, need and demand are created that impacts all types of tourism sectors, as well as the ancillary businesses that serve the tourism and real estate industries.

From the economic perspective, past studies observed that rapid tourism development often entails increases in the costs of living prices for goods and services in the local area which includes the costs of housing and properties.  From the environmental perspective, tourism caused significant impacts on natural environments, traffic and ecosystems, including increases in emissions of waste and different forms of pollutants.

Tourism revenue and tax gains can and should not only cover the cost of tourism’s effects, but should show a revenue positive position.  In short, tourism should pay for itself, and help to sustain the host community. Tourism means construction jobs, real estate development, sales tax revenue and hotel taxes. Tourism pumps money into the local economy, driving up rents on nearby commercial businesses and possible increases property taxes for the local municipalities and school districts.

Other benefits of tourism creates much-needed jobs and income for underserved populations, and brings money into developing communities. Along with providing local economic benefits, tourism can help preserve traditions and foster cultural awareness and pride.

Tourism benefits could include jobs, development opportunities, the promotion of peace and tolerance through a better understanding of other’s cultures while preserving heritage cultures and wildlife.  If done right, the additional revenue that comes into a community also benefits the government. If so, this means the local infrastructure improves with new roads, parks being developed and public spaces improved.

Since all real estate is local, tourism is an economic driver for both the residential and commercial real estate sectors. If properly planned for by your local community, the boom can be multi-fold. For areas rich in history and culture coupled with natural beauty, that local community and regional area can find a sustainable industry that may well be worth the effort.

The flood of tourists during this unique time in history precipitated new investment as well as a swell in house hunters who relocated or bought second homes in the Hudson Valley because of its charm and assets. Tourism is a broad term but it boils down to attracting people to a place, a region. Promoting Rockland, along with the Hudson Valley, is not new but it is an increasingly evolving art that involves community collaboration and commitment. The more a community, or county, participates collectively in making itself a destination, the more everyone – from individuals to businesses to taxpayers – benefits.

Paul Adler, Esq., SIOR is Chief Strategy Officer of Rand Commercial. Reach him at [email protected]

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Why Travel is Important for Real Estate Investing

Scouting trips are an important part of what I do.

Boots on the ground is the single best way to identify true opportunity in overseas real estate. That’s why my team and I spend millions of dollars on travel and research. It’s why I continue to budget generously for scouting trips.

Without putting boots on the ground, I miss the inside scoop on what’s really going on in locations right across my real estate beat.

However, this summer is one I’m calling “the summer of zero scouting” in Ireland.

To put it frankly, I don’t want to waste my time.

The real estate market here has gotten so red hot, that it’s just become silly. Homes in the big cities like Dublin and Cork—already crazy expensive—are going for between 30% and 60% above asking price.

Even homes in Ireland’s scenic spots have doubled in price since pre-Covid.

Brokers want only cash buyers…they want bids before they’ll give you a viewing.

No thank you. For me, as a real estate investor, this is a market that I don’t want to be playing in right now.

I’m moving on…

By the time you read this, I’ll have packed up my base in Ireland and headed back to Portugal where’re I’ll be checking in on things in the Algarve before heading back to my other European base on the country’s Silver Coast.

It’s just the beginning of a months-long trip that is going to take me from Portugal…to Spain…to Mexico…to Panama…and back to my Mexico base in Cabo for the winter.

As we move towards the last quarter of 2021, there is a lot to look forward to with more travel than ever before for both me and my team… you’ll find a detailed run down of where we’re all going and what we’ll be looking for here .

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The Countdown is on to “Mission Italy”

“Mission Italy” is a-go.

Flights are booked, itineraries are being planned, hire cars are being organized…one of my team members is getting ready to hit the ground in Italy later this month. And I’ve got plenty I want him to check out.

• Revisit the opportunities I found in Florence, Rome, and Venice the last time I visited in 2019…the chance to own apartments that could throw off double-digit yields by renting to tourists. Tourism will bounce back in blue chip locales…in fact, it’s just beginning. Venice will still be Venice. Rome won’t lose its appeal. But right now, due to the crisis, we have a chance to buy money-making rentals in cities like Rome for as much as 30% less.
• Find stunning historic boltholes…bargain pocket-money escapes in Italy’s captivating medieval hilltowns.

I’ve also asked him to check out some of the €1 (yep, that’s one euro) homes, in person. My guy plans to visit the small medieval village of Pratola Peligna in Abruzzo, where a number of these €1 homes are currently available.

Italy has been selling these €1 homes for years in an effort to re-energize depopulated hill towns. These are often historic, beautiful towns in stunning places, but there’s no work for the young. And they tended to be in the south of the country.

Last June I wrote: “The “free house” trend will now move northward…”

And I was right.

As I told you earlier this week, a town in the Lazio province, just 90 minutes from the capital of Rome, has started selling homes in their village for a euro.

But are these €1 really a good deal? I shared my thoughts on that with you this week…read them here.

Puerto Vallarta’s Hot New Neighborhood

As I said at the outset, boots-on-the-ground scouting is the best way for my team and I to find the best deals, the deals no one else knows about.

And it also helps us to get ahead of the curve when it comes to up-and-coming locations.

Over the past couple of weeks you’ll have read about what my scout Jason Holland uncovered when he visited the popular beach resort town of Puerto Vallarta on Mexico’s Pacific Coast (if you missed any of his dispatches, you’ll find there here in the archives ).

I’ve been visiting Puerto Vallarta since 2005 and was last there in March of this year. That’s when I discovered a neighborhood in the early stages of gentrification. Puerto Vallarta’s Centro area has flown under the radar but is rapidly changing and developing thanks to its location next door—and a few minutes walk—to the hugely popular, Zona Romantica.Even though I was in Centro just a few months ago, I wanted Jason to check in and see if things had changed there in the intervening months ( you can read his thoughts on this up-and-coming neighborhood here ).

The reason I wanted an on-the-ground update was because of an incredible members-only deal that I brought to members of my Real Estate Trend Alert group this past week. They had the chance to own two-bedroom, ocean-view luxury condos just a 15-minute walk from Centro. And to sweeten this deal even more, these condos came with a RETA-only discount of just under $65,000.

Similar condos close by are priced at $400,000…$500,000…$600,000…or more.

RETA deals like this come and go…fast! When those Puerto Vallarta condos launched on Thursday, all of them were reserved within hours. The only way not to miss out on future opportunities like this, is to lock in your RETA membership today . That way you’ll be ready to act when the right deal for you comes along.

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Explore new horizons . . . where every property tells a unique story.

Real Estate Tourism is an innovative travel concept coined in 2005 when Hibiscus International combined the allure of exploration with the practicality of property investment. As an exciting niche within the broader travel industry, Real Estate Tourism caters to individuals seeking both a memorable vacation experience and an opportunity to explore potential real estate investments.  Our unique blend of travel and real estate, allows potential investors to immerse themselves in the culture, lifestyle, and local attractions of various destinations, while also gaining valuable insights into the local real estate market.  

Whether you’re a global-minded real estate agent, a seasoned investor looking for lucrative opportunities or a first-time buyer considering an international property purchase, our Real Estate Tours & Cruises offers a dynamic and enriching travel experience that goes beyond traditional sightseeing.  Hibiscus Tours International Ltd. provides a firsthand understanding of diverse real estate landscapes throughout 28 countries in the Caribbean region. 

Our Local Experts:  Meet with real estate, financial and legal professionals who are ambassadors of their country. With a deep understanding of the local market and a passion for showcasing the best, they are your guides on this journey to discovering what money can truly bring to life in each destination.  Embark on a journey that seamlessly intertwines leisure and investment, opening doors to new horizons and possibilities .   

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The Impact of Tourism on Punta Cana’s Real Estate Market

• April 11, 2023

Punta Cana, a tropical paradise in the Dominican Republic, has long been a favorite destination for tourists seeking sun, sand, and relaxation. The thriving tourism industry in Punta Cana has significantly influenced the local real estate market, creating both opportunities and challenges for property owners, investors, and homebuyers. In this article, we’ll explore the impact of tourism on Punta Cana’s real estate market and how it shapes the property landscape in this popular Caribbean destination.

1. Increased demand for vacation rentals ● High demand for short-term rental properties among tourists ● Opportunities for property owners to generate rental income ● Influence on property prices and rental rates

2. Growth in property development ● Surge in the construction of hotels, resorts, and residential properties ● Development of new communities, amenities, and infrastructure ● Impact on property values and availability in popular tourist areas

3. Focus on luxury properties and amenities ● Growth of the luxury real estate market catering to affluent tourists ● Development of high-end properties, including villas, condos, and gated communities ● Increased demand for upscale amenities, such as golf courses, marinas, and private beaches

4. Attracting foreign investment ● Interest from international investors in Punta Cana’s real estate market ● Influence of foreign buyers on property prices and market trends ● Benefits and challenges of foreign investment in the local economy

5. Environmental concerns and sustainable development ● Impact of tourism and property development on the local environment ● Importance of sustainable development and eco-friendly practices in the real estate industry ● Initiatives to preserve Punta Cana’s natural beauty and resources

6. Market fluctuations and seasonality ● Seasonal fluctuations in the real estate market due to tourism patterns ● Effects of market changes on property prices, rental rates, and investment opportunities ● Strategies for navigating the seasonal nature of Punta Cana’s real estate market

The tourism industry in Punta Cana has had a significant impact on the local real estate market, driving demand for vacation rentals, luxury properties, and foreign investment. While this growth presents numerous opportunities for property owners and investors, it also raises concerns about sustainability and environmental preservation. By understanding the relationship between tourism and the real estate market in Punta Cana, stakeholders can make informed decisions to capitalize on opportunities while also promoting responsible development that benefits both the local community and the environment.

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Navigating the punta cana property market: tips for first-time buyers, discover punta cana: a quick guide to living and investing in the dominican republic’s tropical paradise.

Siria Mieses Real Estate

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Last update on April 13, 2024, 12:00 pm

Tourism June 13, 2022 | 4:53 pm

Real estate tourism, in full swing: they launch a new project in Punta Cana

Executives from  Buena Vista at San Juan Lakes  formally launched the luxury real estate project in  Punta Cana , which has forty private villas strategically located next to the area’s primary health, education, and leisure services.

“Buena Vista at San Juan Lakes, has an ideal location in Punta Cana, the area with the greatest tourist development in the Dominican Republic and close to the best beaches and the best golf courses in the world. An area that combines accessibility and also a private and safe environment for our health”, indicated Jesus Montano  (Jr.) and   Ralf Friessner , as developers of Buena Vista at San Juan Lakes.

They explained, “In total, there are forty luxury villas with two different models of open and bright modern design that you can choose according to your needs and preferences. Sixteen with one level and twenty-four with two levels, both with exterior environments and spaces for the enjoyment of the whole family”.

The project, headed by the architect Roberto Reijo and the engineer Vicente Cruz, has one-level villas from 240.00Mts2 and two-level villas from 285.10Mts2 and aims to respond to the needs of new buyers who are looking for open spaces, finishes, quality, and safe environments.

As an added value, the owners of the Buena Vista villas will be able to enjoy the Clubhouse of the residential community, San Juan Lakes, a space for relaxation, leisure, and entertainment, through a swimming pool, recreational area, playground, and several natural lakes.

Buena Vista is part of the  San Juan Development plan, made up of the largest shopping center in Punta Cana, with a wide range of entertainment, shopping, and restaurants.

During the presentation of the project at the  AC by Marriott hotel , realtors and associates from the real estate and tourism sector learned about the main benefits of the residential area, which stands out for its open spaces and low population density, as well as for a natural environment surrounded by large green areas and wide trails that guarantee the exclusivity, tranquility, safety, and health of its inhabitants.

Stop selling to haitian middle class and upper they dont deserve to live in our country force them to invest in their failed state not in DR we dont want them in Punta Cana they dint have not even shame on themself

Such a loving man you are….

Please be kind, he has mental issues.

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Home » Industries » Real Estate and Tourism

The ability to anticipate and ride (out) economic cycles is essential for any business, not least those in real estate and tourism, where the swings can be especially sharp. Now, following the pandemic, the flexibility and resilience required go beyond the cyclical. Markets changed, in some ways for the long haul.

Developed countries have seen a shift in demand for residential properties to more spacious homes away from the big cities. The impact in the commercial sector has been marked, as office workers increasingly prefer remote or hybrid working patterns. Lower footfall in employment centres has also hit hospitality venues as well as retailers – even as tourism and international travel rebounded. Tighter labour markets challenge each sector.

With the value of their commercial properties written down, owners and developers are re-sizing, re-balancing portfolios and mixed uses, providing extra amenities to woo employees, and shifting investment to satellite sites. Higher capital and building costs at a time of greater economic uncertainty raise the stakes.

There are many other risks and challenges – from cybersecurity and housing affordability to the unpredictability around regulation and ESG (environmental and social governance) matters. Regulators and even municipalities have begun to require transparency and benchmarking on energy use, carbon emissions and social impacts.

Sustainability is an increasingly serious and widespread concern too – whether for lessees or tourists. Companies’ resilience must extend to the climate as extreme weather events cause disruption and damage. We see resultant disputes embroiling multiple parties, including developers, building occupants and their insurers as well as designers, contractors and their professional advisers.

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How to Travel & Invest In Real Estate – 10 Essential Tools of the Trade

By Chad Carson 15 Comments Filed Under: Travel & Life

Not all those who wander are lost.” ― J.R.R. Tolkien

If you’re around me long, you know how much I love to travel. I have the wanderlust deep in my soul!

In fact, I’m writing this while looking out my apartment window at the beautiful green mountains surrounding Cuenca, Ecuador – my family’s home this year. And as if on cue, an enormous rainbow just appeared so that I could take a picture and share it with you (no kidding!).

I was fortunate to meet my wife, who has the travel bug like I do.  Early in our marriage, we traveled to Costa Rica, Mexico, and numerous long road trips in the western U.S.  And in 2009 we took a mini-retirement to Spain, Peru, Chile, and Argentina.  All of these kept the fire burning for our first ultra-long excursion with kids this year in Ecuador.

But as much as I love to travel, I also love real estate investing and the income it produces month after month. And on the surface, those two passions might not seem to mix.

After all, everyone will tell you that real estate isn’t a passive investment. You have to be local and hands-on in order to screen tenants, collect rent, fix leaky toilets, manage contractors, and perform all the other minutia of real estate.

Real Estate is an Investment AND a Business

The truth is that YES, all of the real estate work I mentioned above has to get done. But you don’t have to be on-site to do it all. And for many tasks, you don’t have to do them at all. Other competent people are more than capable of doing them for you.

The key insight is this: real estate investing is one part investment and one part business.  

On the investment side, you invest your money in order to build wealth and income.  That’s what attracts most people in the first place. But on the business side, the property and tenants must be managed (aka property management). And, you must pay attention to the big financial picture of your assets (aka asset management).

You can create a job for yourself and personally do everything in these businesses. And at least in the short-run, I think that’s a good idea in order to learn the details from the ground up.  But at some point, you must treat it like a true business if you want personal freedom. A true business pays for itself without your ongoing, everyday involvement.

How do you as the business owner create a true business? You must build systems, leverage technology, and outsource key tasks to competent, trustworthy people. And you must also create enough cash flow and profit to pay for all of those.

Michael Gerber in  The Emyth Revisited   calls this the process of working ON your business, and not just IN your business . It’s the critical step to take real estate investing from a time-consuming hobby to a life-enriching business.

An Investment Business That Sets You Free

When you take this important step of treating your real estate as a business, you can then travel or do whatever else matters to you . There may still be some tasks you want to perform – like I still remotely pay my bills, approve tenant applications, and perform some bookkeeping. But this is a VERY part-time job of 2-5 hours per week that I can do from anywhere.

My business partner and I never plan to outsource the asset management role. This means we handle unusual or strategic decisions, and we perform annual reviews of our finances and our properties. But this does not take an enormous amount of time, and it is no different than we would treat any other investment portfolio.

So, with that approach in mind, I now want to share 10 of the essential tools we’ve put into place in our real estate investing business.  These systems, technologies, and team members are what make travel and real estate investing possible for me.

Tool #1 – Online Property Management Software

Our rental business has been well organized for many years. We created an operating manual that had all of our forms, systems, procedures, and checklists. But the problem was that most of the tasks were done manually or used several different computer programs that didn’t work together.  It was inefficient and cumbersome to execute.

This all changed a couple of years ago when we began using online, cloud-based property management software. We’re now able to run all of these systems and processes within one umbrella program. It’s made us much more effective, and it’s also allowed me to easily check on everything as I travel.

We use a software called Buildium  (this is an affiliate link, which means if you sign up I’ll earn a commission, at no extra cost to you).  Buildium starts at $45/month and gets more expensive based on the number of properties you manage. So, you might need to get a group of properties under your belt before it financially makes sense.

But for that monthly fee, we get many benefits, including:

• Listing management to organize and promote our available rentals to all the rental websites online
• Marketing website and online applications (this dramatically increased our number of tenant applications)
• Tenant screening that lets us collect references, pay stubs, credit/background checks, & more in one place
• Online lease (no printing or physical signing)
• Online payments from tenants so that we don’t have to physically deposit payments
• Professional tenant website portals so they can check their balance, make payments, and get documents
• Track all maintenance online through work orders
• Hire third party inspections of properties (if needed when you are out of town)
• Handle all property management accounting in one spot

This system is accessed using a web login or my smartphone, which means I can check it from anywhere in the world. And my bookkeeper, contractors, business partner, and other team members can do the same with their own login.

There are also free tools that do a portion of these tasks. Some of the ones I’m familiar with are rentmarketplace.com and cozy.co .  These sites also let you market your properties, screen tenants, and in some cases accept rent online. The solution is not as comprehensive as I like for my business managing many properties, but for small landlords, they could be perfect.

Tool #2 – Inexpensive & Flexible Smartphone Service

Smartphones have changed my business by letting me do many functions on the go. Occasionally, I’d like to throw my phone into a lake so I never have to hear it ring or ping again! But most days I appreciate it for the helpful tool that it is.

But the problem with many smartphone plans for international travel is their high cost and lack of flexibility. Plans that cost $150 to $200 per month for a family don’t work for me anymore, especially while traveling. These expensive plans also don’t usually include international calls or data.

Several years ago back in the U.S., we switched to an innovative cell phone company called Republic Wireless (this is an affiliate link).  When in the U.S., we pay $30/month per phone for unlimited talk, text, and 2 GB of data.  What makes Republic Wireless unique is that the phone also works for unlimited talk, text, and data while on WiFi connections (like in your house). This dramatically reduces the data you use each month. But importantly for international travel, this also allows us to use the same phones on a cheaper plan (less than $15/mo) that only work on WiFi. So, we can do everything like normal from our hotel, apartment, or any public WiFi connection along the way.

But our solution isn’t the only way to handle phones while traveling. Here are some other solutions I’m familiar with:

• Buy an “ unlocked ” phone and sign-up for a local plan wherever you’re traveling ( Amazon has many phone choices ). For example, a high-quality local plan with data here in Ecuador is $14 per month, and you can use WhatsApp  or similar programs to make and receive calls back home for free.
• Purchase an international plan like Google Project Fi , which starts at $20/month and includes data in many countries around the world.
• Use MagicJack , which costs $35/year and lets you plug into an internet connection anywhere in the world and call back to the U.S. and Canada.

Tool #3 – Day-to-Day Communication With Google Apps

Communication with team members back home is critical to traveling as a real estate investor.  Aside from rare phone calls, my methods of regular communication fall into three categories – email, messaging, and collaborative documents.

First, like many people, I use and love Gmail to handle all of my email needs. It’s flexible, free, and works great for filtering and finding emails.

Second, I use  Google Hangouts  as an online messaging service.  I message with individual people on my team, like my business partner and my bookkeeper. We also create messaging groups that allow us to send and receive messages together on collaborative topics.  Importantly for digging out old information, you can also use Gmail to search for topics within your old Hangout messaging threads.

Third, I use Google Docs to create and share business documents and spreadsheets and Google Drive  to store and organizes all of these.  For example, we have separate spreadsheets with our property details, insurance information, and mortgage information. Each person on my team can update and comment on these documents so that we don’t have to send them back and forth.

Tool #4 – Google Voice For Free Phone Numbers & Voicemail

Google Voice  is a very helpful, free phone tool for a real estate investing business.

First, Google Voice substitutes for any cell phone’s built-in voicemail and does a much better job. It transcribes all of your voicemails (and sends you a text and email copy) so that you don’t have to listen to any more voicemails.  You can also forward these voicemails to others, like when a prospective tenant calls and someone else needs to call them back.

Second, Google Voice provides a free, local phone number that can be forwarded to a live cell phone. You can choose to send calls to your phone only during certain hours and directly to voicemail during other hours. These free numbers are very handy for marketing rental properties. You could even have a phone number for each rental, with a recorded message giving callers details about the property.

Tool #5 – Online Banking

Almost every bank does online banking now. And this service has made it much easier to travel and invest in real estate.

Each week I pay bills to my contractors and other team members back home.  The regular bills are paid automatically and direct deposited into the person’s bank account.  The other bills I manually enter into my online banking, and they’re either direct deposited or mailed. The mailed checks take about a week to arrive.

When online banking isn’t appropriate, you can also use credit cards to pay bills online or over the phone. Between these two solutions, we are able to pay every bill in the entire business without physically being there.

As I’ll explain in the next section, I also review the actual bills and invoices as I make payments. This paperwork is scanned and uploaded online by my bookkeeper as she enters the bills into our bookkeeping software each week.

Tool #6 – Paperless Filing System

Working to go paperless was a big change in our real estate investing business. After all, real estate involves a LOT of paperwork. And we had a good physical filing system that worked fine. But making this paperless office step has given us greater flexibility, both when at home and when traveling.

In the future I plan to write a more detailed article about our paperless system (if you’re interested), but here’s a brief overview of our system:

• Scan every single important piece of paper. (See Tool #7)
• Create a descriptive name for every scanned file.  (This is important for searching later)
• Upload the file to Evernote , an amazing online filing system.  (Click link for a free month of Evernote Premium)
• Organize each Evernote file in a particular Notebook and with one or more Tags.  We only have a few Notebooks (one per company), and the tags are organized by category, like vendors, properties, accounting categories, etc.

The end result of this is that we can easily and quickly find everything online. The system holds and organizes everything that used to be in file cabinets, including invoices, insurance policies, leases, closing statements, and more.

Evernote also has an incredible search function that makes finding paperwork easy.  For example, you can even search for words contained within  a document, like “Lowes” on a credit card statement. This makes the online filing system much more useful for digging out old information than a physical one.

Tool #7 – Ultra-Fast Scanner

The paperless filing system isn’t all effortless, especially at first. One of the biggest bottlenecks is continuing to scan all of the papers on a weekly basis so that they don’t get stacked up.

To make this step easier, we bought an expensive, top-of-the-line scanner called the Fujitsu iX500 .  I’ve already admitted many times on this blog that I’m a nerd, but I did not realize how much fun scanning 25 pages per minute could be! After having prior scanners eat and crumple up pages like a plant-eating dinosaur, the contrast was amazing! If you’re also a scanning nerd or want to work on going paperless, I highly recommend this particular scanner.

Tool #8 – Virtual Signatures

Signing paperwork used to be one thing that tied real estate investors to one location. But virtual signature tools changed that.

I personally use and love an online app called  DocuSign .  It has a free version that lets you sign any pdf document using your smartphone or any computer with internet access.

This is especially helpful because I sign all of our leases with tenants. So, our administrator first prepares the lease for my approval. Then both the tenants and I initial and sign all pages using Docusign.  We never even print the document!

And once the document is signed by everyone, we save it in two places. First, we save it to Buildium so that our tenant can always get a copy. Second, we save it in our online filing system, Evernote, so that we can easily access and search for it when needed.

You can get the free version of DocuSign here .

Tool #9 – Remote Desktop Software

Remote desktop software lets you log into your home computer from anywhere with internet access. There are two programs that I currently use and recommend, Teamviewer and Google Chrome Remote Desktop .  Team viewer has more features and is free for personal use.  Chrome Remote Desktop is simpler, but it also works just fine.

Remote desktop is important when you need to access programs on a home computer. For example, we still use Quickbooks Desktop  (instead of the subscription-based, cloud version) for our rental property bookkeeping.

While we still use this tool for now, I could see it be less important in 5 years as everything is done in the cloud online.

Tool #10 – *MOST IMPORTANT* – Team Members

So far I’ve spoken exclusively about technology, but this last and most important tool is very low tech.  The “tool” is simply the relationships I have with trustworthy people back home. Interestingly enough, it’s the only truly indispensable piece of this entire puzzle of travel and real estate investing.

My own team is small and lean.  It starts with our bookkeeper/administrator who checks the mail, processes bills, files paperwork, handles maintenance calls with tenants, schedules showings, and does many other miscellaneous tasks. We have a long-term, trusting relationship with her, and I certainly could not travel without her.

We also have handymen, electricians, plumbers, HVAC techs, carpenters, roofers, and pest control vendors who respond quickly for us when needed.

I distinctly remember in 2009 calling a plumber from the Magellan Strait , almost at the bottom of the world ( see where I was on this map ), to get a hot water heater changed! I called my plumber and told him what needed to be done. Then I went on to tour a penguin colony!

Because we grew our portfolio of properties recently, we also decided to hire a third-party management company to handle some of our rental units.  So far, this company has been an excellent addition to our team.  We can count on them to manage just as well or better than we do ourselves.

Finally, I have a business partner who I’ve worked side-by-side with for almost 15 years now.  While partnerships don’t work for everyone, our own partnership has been great for us. Our partnership gave us both a greater amount of flexibility knowing we can cover for each other when needed.

If you don’t have a partner or don’t want one, consider creating a strategic alliance with other local real estate investor friends.  I’ve heard of alliances where friends will cover for each during a month while the other was traveling (and vice versa).

The Voyage of Discovery in Business and Life

The real voyage of discovery consists not in seeking new landscapes, but in having new eyes.” ― Marcel Proust

I’ve given you 10 tools that allow me to travel and invest in real estate. But also keep in mind the underlying theme behind all of these tools:

Business and investing can give you more freedom.

It’s very easy to let your business and investments create a gravity of their own that keep you stuck. Even while putting money in your bank account, they can consume your time and limit your life possibilities.  To me, this is like letting the tail wag the dog!

Traveling while owning a local real estate business is not simple or easy, but it can be done.  Like traveling itself, it requires a voyage of discovery. It requires seeing your business and your life with new eyes.

But the rewards of the process are incalculable.  Why? Because travel or any other passions aren’t something to save until the end. They are investments you make in yourself throughout your life.

Are you someone who loves to travel? If not, what other passions would you like to spend more time on? How do you balance your business/investing and your passions? What tools, systems, and team members are essential for you?  I’d love to hear from you in the comments below.  

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May 16, 2017 at 1:28 pm

Thanks Chad! I’m still running my real estate business locally, but am fascinated by the idea of taking it on the road. I’d be very interested in more details on your paperless filing system and your annual review of each property.

May 16, 2017 at 10:40 pm

Thanks for commenting, Natasha! If you make a goal of taking it to the road, you can slowly put your systems and plans in place. Go for it!

Glad to hear you’re interested in learning more about the paperless filing and the annual review process. I’ll plan to write more about both in the future.

May 16, 2017 at 3:10 pm

I’m triggered by how the real estate business works in the US. You mentioned that many think of it as active investing, and probably many are actively involved. We’re just starting out and have two rules: make profit and outsource as much as possible. We work together with an estate manager who takes care of all the maintenance, financial work, finding tenants and keep everything under control. Yes, we pay a small fee, but we also save a lot of money. By not managing ourselves we get massive tax discounts (different brackets), so it becomes that more interesting to do so.

May 16, 2017 at 10:37 pm

I like your two rules! Profit and outsourcing are wonderful standards to hold yourselves to.

I think in the US it depends upon the investor. But many rental owners are active because they want to or have to save money in order to make the deal cash flow. But like you said – buy a deal that makes a profit and pay someone else. In the big picture, that will save you a lot of time and perhaps money if you can use your time wisely to buy other investments.

Your comment is interesting about tax savings. Do you mean that it reduces your profit, which takes you into a lower tax bracket? I was hoping you could explain that more.

And thanks for visiting from the Netherlands! Great to hear from fellow FIRE investors from across the Atlantic.

May 16, 2017 at 4:53 pm

Great article. Definitely some good nuggets there to learn from. Question, how reliable is Republic Wireless VS Verizon or another company? I would love to ditch verizon and the $180 a month bill!! We have done good with staying pretty hands off as far as managing our rentals(using a property management company) until our latest purchase, a communial living with students. Michelle is managing it and it looks to be more of a high paying babysitting service I think. We have already taken steps to help with so much hands on there but need to work some more on it. Hope all is well in Ecuador!

May 16, 2017 at 10:31 pm

Hey Jack! Good to hear from you. Republic has been very reliable for us. Over a multiyear period there have been a couple of times that a call got dropped when switching from network-to-wifi. But I think I got dropped by Verizon just as many times. So, we have had ZERO regrets dropping Verizon. Republic actually buys time from the big networks, so you’re really using their networks anyway!

Good luck with your communal student rental. I can see that being tough. Even with signed rules on our student rentals, we also have to babysit a little more sometimes. But you all know how to build systems – so I hope you can get it figured out!

May 17, 2017 at 9:25 am

Hi Chad, Thanks for another great blog post. To Natasha, the biggest enabler to being remote and with poor cell service (cruising, remote travel) is getting a google voice number and a gmail business email and moving all your tenants and business contacts to that number/email. Then when you miss a text google sends you an email with the text. I was on a week cruise with no cell plan and had no problem with slow internet interacting with my business via gmail.

May 18, 2017 at 2:01 pm

Great point, Curt. Google Voice is such an awesome tool. I personally love just not having to listen to long voicemails anymore! I just read them or play them on the computer worst case.

Thanks for stopping over to comment!

May 17, 2017 at 12:15 pm

This is part of the reason why I like investing in condos so much… so little can go wrong inside the four walls and it gives me a sense of more mobility.

Another travel phrase I like is: “Your only lost if you have to go back.” 🙂

May 18, 2017 at 2:03 pm

Lol. I love that quote! Getting lost can be fun!

Yes, I can see that appeal for condos. The more you can reduce the big ticket items, the better. You of course know this, but it also shows why it’s important to study your Condo HOA’s finances to make sure THEY are thinking of those big ticket costs for you as part of your fees. If not, you may get hit with a big assessment out of nowhere.

June 12, 2017 at 10:00 am

Awesome article. Are you able to handle contractors, realtors and property management with all these tools remotely? I assume you have systems in place for maintenance and people you trust to handle the more hands on aspects. That is the thing I worry about more.

June 12, 2017 at 2:56 pm

Hi Tom, Thanks for stopping by! Yes, we handle communications with a variety of different team members with these tools. For maintenance, my assistant back at home has a list of contractors we know and trust. We occasionally add news ones to the list as needed. These relationships do take some up-front research and networking to find and vet them. But it’s worth it in the long-run and the relationships can last for years. And if you use a 3rd party manager, it’s even easier because they’ll have their own go-to people.

June 23, 2017 at 9:57 am

Love your blog! I have 4 properties but believe it or not I’m still very new to this and your blog has great tips. Right now my properties are generating minimal positive income for they are paying off the mortgages and all the expenses (minus any repairs which mostly come out of pocket). I’m hoping that in a few more years most of the properties will be paid for and then we can start buying others. Love your ideas and I will implement them soon.

June 23, 2017 at 2:08 pm

Awesome, Tito! Thanks for stopping by and for commenting. And congrats on your progress thus far! I love the idea of paying some properties off, reaching a plateau of positive cash flow, and then buying some more. Good luck and let’s stay in touch!

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What is a Virtual Tour in Real Estate?

The real estate industry has introduced numerous innovations, including virtual tours. Still, this showing method isn’t a product of the digital age. It first appeared over two decades ago, long before we had the means to create virtual simulations the way we do today. In 1994, an exhibit of Dudley Castle in England showed what this edifice looked like in the 16th century.

The exhibition generated quite a buzz in the real estate sector. Agents already habitually showed potential buyers photos of properties that interested them. However, technological advancements made the process more sophisticated — static pictures became moving images, and moving images turned into 360-degree videos.

These 3D virtual tours gained even more traction during the pandemic. Covid-19 prevented buyers from attending in-person showings, so virtual home tours became the norm. They allowed customers to enjoy an authentic and immersive experience at their own pace from the comfort of their homes. This level of convenience made 3D tours an integral part of every successful showing. And as a result, the real estate industry never looked back. 

What Are Virtual Tours?

Real estate virtual tours or 3D walkthroughs are a series of digital images stitched into a virtual simulation of the interior or exterior of a home, apartment, or building. Depending on their complexity, they may include multimedia like videos, maps, music, narration, and more, offering additional information about the property. 

These digital simulations are available on various electronic devices, from desktop computers to mobile phones, allowing prospective buyers to tour a place virtually.

Types of Virtual Tours

The 3D rendering industry offers several types of virtual real estate tours. You can learn more about what each category entails below.

• 360-degree panoramic tours — These media provide a 360-degree view of a property or scenery. They’re a step up from static images because they create the illusion of being inside the location. Viewers can move left and right and zoom in and out to better understand the place they’re touring. Besides real estate, 360-degree panoramic tours are popular in tourism.
• 3D interactive walkthroughs — A 3D virtual tour is an interactive three-dimensional model of a property. It’s a mash of 2D images and 3D data, allowing buyers to view a place on multiple levels. They can explore its exterior, interior, and surroundings and switch perspectives and angles. 3D tours can include automatic narration, interwoven text and links, floor plans, and more to make the tour more engaging and informative.
• Video-based virtual tours — These virtual house and apartment tours provide simulations of properties through a set of videos. Because of their perspective limitations, video-based tours are slightly less popular than the other two options. Viewers cannot move around the property as they like or focus on areas of interest. They can see the space only from one point of view at a time.

Benefits of Virtual Tours

The popularity of virtual home tours stems from their multitude of benefits. A few of the most relevant ones are listed below. Take a look.

• Reach — Thanks to virtual tour technology, real estate businesses can reach more customers than ever before. Anyone with an internet connection can visit their website and tour all the properties they have for sale. 
• Availability — Virtual tours are available at any time of day and night, which makes them easily accessible. They eliminate the need to take time off work and travel for the buyers and relieve the stress of scheduling and staging for real estate agents. 
• Versatility — Creating a virtual tour gives real estate companies a better chance of selling their properties. Realtors can use them to obtain building approvals and help potential buyers envision homes or apartments still under construction or renovation.
• Competitiveness — While not necessary, offering virtual home tours can give real estate businesses an edge. They’re known to improve a website’s search engine results and generate more sales.

How to Create a Virtual Tour

An effective virtual home tour can improve the quality of your listings and attract more customers, so it’s worth knowing how to create it. Real estate businesses can do this task in two ways — outsourcing or DIY. 

Leveraging professional virtual tour services generally yields the best results. The US market is packed with quality 3D rendering companies specializing in home tours. They employ a team of experienced and talented individuals who utilize the latest technology and tools and apply their knowledge and expertise to every project. 

They’ll handle the entire rendering process for you, from shooting to post-production, taking your feedback into account. You’ll get a full-fledged home tour within a short time frame at an affordable price.

If you choose to forego hiring professionals, you can also create a virtual tour by yourself. The procedure consists of several steps and requires special equipment. In terms of the former, there are three things to consider — staging, structure, and photography. 

Staging comprises decorating the property to make it more appealing to buyers. They must be able to envision themselves living there, so it shouldn’t be too empty or cluttered with personal belongings. Aim to make the space appear clean, spacious, and warm.

Consider the way a buyer would move through the property you’re selling. Think about the route they would take, the pace of their tour, and the elements they would observe. Create a map of the virtual tour based on these components.

Make sure you’re on top of your game when it comes to photography:

• Buy or borrow a high-quality camera.
• Learn how to make the most of your camera’s features.
• Stage the tour in the daytime for better visibility.
• Find the best angles to make the walkthrough as natural as possible while including property highlights.
• Keep a steady hand or use a tripod to ensure smooth footage.
• Delete mistakes and colorize and lighten the material you’ve shot in post-production.

The following equipment can help you achieve the best results:

• 360-degree cameras — These cameras capture 360-degree videos, allowing you to create virtual tours hassle-free. If you cannot get one, use Facebook’s 360-degree camera feature to create tours for your social media followers.
• Virtual tour software — Many tech companies offer virtual tour software online. This technology comes in different shapes and forms, delivering more and less sophisticated results. Surf the internet for the most popular choices and choose one according to your needs and preferences.
• Video editing tools — Find a quality beginner-friendly editing program to process your virtual tour. For the best results, add media, like photos, links, floor plans, and text.

Tips for Creating a High-Quality Virtual Tour

Your 3D tour will be more effective if you pay attention to the property layout. Viewers should be able to get a clear sense of the property’s structure and traffic flow. Ideally, you should start from the entrance and move through the place following a natural route. Attaching a floor plan may also prove helpful.

Don’t forget to shoot and edit the material so it highlights the home’s best features. Focus on recent upgrades, renovations, or unique characteristics. 

Integrating Virtual Tours Into Real Estate Marketing

Virtual tours have many applications in real estate marketing. They’ll generate more traffic and boost sales if you:

• Add them to your listings — Virtual tours can elevate your listing in two ways. They’ll help you reach worldwide audiences and provide them with a free, convenient, and immersive way to look at properties online. 
• Share them on your social media and website — Including virtual tours in social media profiles and websites will help you stand out from your competition with ease.
• Use them for virtual open houses and events — Create online open houses and events using virtual tours. You’ll increase your real estate’s exposure and improve its sales potential. Plus, you can save the recording and use it in future marketing campaigns.

Future of Virtual Tours in Real Estate

As technology evolves, new tools and techniques continue to revolutionize industries. The real estate sector is no exception. Three of the most notable breakthroughs in this industry include VR (Virtual Reality), AR (Augmented Reality), and AI (Artificial Intelligence). 

VR simulation uses 3D displays and pose tracking to create an immersive virtual reality. It allows clients to explore the virtual representation of a property they plan to buy more effectively. With tools like VR headsets, they can enjoy an enhanced home tour experience anywhere. 

Augmented Reality is a technology that overlays the real world with generated 3D content. Through tools such as smartphones or iPads, it can add details or changes to properties under renovation or construction in real time. Buyers can envision unfinished projects in a new, easy, and exciting way while visiting the location. 

AI and machine learning may not directly change real estate virtual tours, but they can make the sale process smoother. These tools can help buyers estimate home values in real time and generate listings based on their needs and preferences. Real estate agents can use AI to build better rapport with clients, develop more effective marketing material, find prospective buyers faster, automate administrative tasks, and so on.

Potential Challenges and Solutions for Virtual Tours in Real Estate

In case you’re still not sure how essential virtual house tours are for your real estate business, consider the list of challenges they address:

• Organization — In-person showings imply the buyers must agree on an appointment with the agent and current tenants and find time to travel or drive to that destination. Virtual tours eliminate all these issues, allowing customers to explore properties on their schedule and at their leisure.
• Specifics — Real-life house and apartment tours are subject to time limitations. Often, there’s no time to focus on details and ask more specific questions. Clients should gain as much insight into a property as possible in one visit. 3D virtual tours allow buyers to spend as much time as they need looking at a property. They can zoom in on details and decide on the purchase at their own pace.
• Unfinished real estate — Realtors often have issues selling houses or apartments under construction or renovation. Clients find it hard to imagine what the space would look like, so they prefer not to risk their money. Virtual real estate tours solve these problems by bringing unfinished projects to life digitally. Buyers can use them to visualize their future homes and make changes during construction to suit their needs better.

Role of Virtual Tours in Sustainable and Eco-Friendly Real Estate Practices

Going green has become one of the central motifs in all industries, including real estate. The sector uses various means to move toward a cleaner and more sustainable future. Virtual tours rank among the most important:

• They eliminate the need for brochures, reducing paper waste and conserving resources.
• They’re available online 24/7, eliminating the need to drive to in-person showings, thus saving gas.
• They allow buyers to monitor the construction of their homes and make changes ahead of time, minimizing construction time and, therefore, air, water, and noise pollution.

Virtual tours are the future of real estate sales. They let buyers around the globe view properties at their leisure, focus on details, and envision unfinished projects. Plus, they allow the integration of new technologies, such as virtual and augmented reality. 

In return, these features increase the real estate business’s popularity, resulting in broader customer pools, more leads, smoother sales processes, and a competitive edge. All of that while being eco-friendly — now, that’s hard to top.

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Kate Montalbano

Kate Montalbano is the Head of Virtual Staging and Rendering here at Listing3D! She has been with the company since 2020 and has poured her enthusiasm for real estate and home decor into her position. Kate began as a customer success representative before ultimately being promoted to where she currently stands. One of her favorite aspects of work is curating furniture pieces and crafting interior spaces. Outside of work, Kate loves to spend quality time with her daughter, assisting friends in their own home design endeavors, and going for long hikes alongside her three beloved pups. Travelling across the US with her daughter ranks high on Kate’s list of hobbies - from tasting new cuisines to checking out local museums and immersing themselves in area culture. Admiring interior design and modern architecture also rank among things she finds joy in.

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Why tourism is important to the real estate industry

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One of the biggest decisions taken by the UAE government, is moving away from oil dependency. The oil and gas industry was facing a slowdown globally which significantly affected the economy. Instead, the country started to focus on making tourism as the main primary source of revenue. A move that was initially regarded as a gamble proved to be worth billions of dollars making the country to become one of the biggest tourist destinations in the world.

In a very short time, the country has achieved tremendous growth which has ultimately led to an evolution in the real estate sector. It is reported that some areas of Dubai offer rental yields of up to 10%. While investors are gaining attractive rental incomes, long-term tourists are having a luxurious experience at a fraction of cost in other major cities.

At the end of 2018, the Dubai International Airport received approximately eighty million visitors and expects more as the city prepares to host the Expo 2020. This is in line with the government aim to attract over twenty million visitors by 2020.

The rising number of tourists needs places to stay which has led to the development of accommodation facilities. Property developers have been involved in various new real estate projects in Dubai and across the country. Even though it was just a small town some few years back, Dubai is now competing with other major tourist destinations in the world such as Paris, Singapore and more.

In the recent past, top real estate developers Dubai have been initiating projects to benefit from the tourism boom and more than twenty million visitors are expected for the Expo 2020. As a result, the population of Dubai is also expected to grow up to 3.2 million people which will necessitate the development of more residential units. One of the biggest features of the real estate industry is the off-plan properties such as Mina Rashid Emaar . This plan is helping more residents to buy properties instead of renting. 

The government is active in supporting the growth of the tourism industry by providing top of the range infrastructure. For example, most parts of the city are connected by an efficient transportation system. Also, the government is marketing the country overseas to attract more visitors. In addition, the government is focusing on changing employment regulations to lure and retain the high-skilled workforce. Coupled with the new visa rules, the city is poised to receive talented professionals. This will lead to an increase of the city’s population which will require the development of more residential properties.

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Chaplin School of Hospitality & Tourism Management establishes new real estate executive advisory board

By Media Relations

April 3, 2024 at 9:00pm

The new board members represent every facet of hospitality real estate including developers, investors, hoteliers, bankers, alternative accommodations, and property and financial information technology.

The board will be led by an FIU Chaplin School alumnus as chair, along with a vice-chair and a steering committee:

• Keith Space , president and chief operating officer of  Fort Hospitality  and HREAB chairperson. Space is an award-winning hospitality executive, who takes a vision and creates a successful business model around it. He’s spent his career repositioning existing non-performing hotels as well as creating distinct properties that cater to discerning upscale travelers. Space holds a bachelor’s degree in Hospitality Management and a master’s degree in Hospitality Real Estate Development from FIU’s Chaplin School.
• Marco Roca , chief executive officer of  Reveille Hospitality  and HREAB vice chair.  Roca is a leader in global real-estate startup and operations. For nearly four decades, he has proven himself  with a track record of consistently breaking sales records, improving operational results, profit and loss responsibility and strategic planning. Roca is tri-lingual with the capability to manage across multiple international sites.

Members on the Chaplin School’s Hospitality Real Estate Advisory Board include FIU alumni:

• Natalie Castillo, managing director, Berkadia
• Lani Kane-Hanan, chief executive officer, ONE
• Jordan Kavana, chairman and founder, ARK Homes for Rent
• Ethan Kramer, co-founder and chief investment officer, Paramount Hotel Group
• John Lancet, senior managing director, HVS
• Ed Miranda, founder and president, Luxury Development Consultants, Inc.

Additional board members include:

• Karim Alibhai, chief executive officer, Gencom
• Boaz Ashbel, senior managing director, Aztec Group, LLC
• Eric Bass, executive vice president and chief development officer, GFI Development
• Joan Bertran, executive vice president of commercial real estate, Banco Sabadell
• James Bermingham, chief executive officer, Virgin Hotels
• Barry Bloom, president and chief operating officer, Xenia Hotels & Resorts, Inc.
• Stewart Brown, executive vice president, Hospitality Dart Interests
• Nick Falcone, chief executive officer, Rentyl Resorts
• Jonathan Falik, founder and chief executive officer, JF Capital Advisors
• Todd Hricko, senior vice president and head of global hotel development, Hard Rock International
• Raul Leal, president and chief operating officer, Starwood Lodging
• Aly-Khan Merali, president and chief operating officer, Turnberry Associates
• Pedro Miranda, managing partner, Cambridge Landmark
• Donahue Peebles, III, executive vice president, The Peebles Corporation; chairman and chief executive officer, Legacy Real Estate Development
• Jarel Portman, founder, JPX Works LLC
• Steve Rushmore, founder, HVS

About FIU’s Chaplin School of Hospitality & Tourism Management:   Florida International University's   Chaplin School of Hospitality & Tourism Management  is a  Top 10 hospitality school among U.S. Public Universities and ranked 35 th  in the world . Nearly 1,200 undergraduate and graduate students from across the nation and around the globe choose FIU for its outstanding reputation, advantageous campus locations in Miami, expert faculty, rich curriculum and real career opportunities in the international hotel, real estate, foodservice, beverage and spirits management, travel, tourism, revenue management, entertainment, and mega and large-scale event industries. As the leading diverse hospitality program with over 70% women and students from 74 countries represented, Chaplin School graduates more undergraduate Black, Hispanic and International students than any other school. For more information about Florida International University's Chaplin School of Hospitality & Tourism Management, visit   http://hospitality.fiu.edu . About FIU: Florida International University  is a  top public university  that drives real talent and innovation in Miami and globally. Very high research (R1) activity and high social mobility come together at FIU to uplift and accelerate student success in a global city by focusing in the areas of environment, health and innovation. Today, FIU has two campuses and multiple centers. FIU serves a diverse student body of more than 56,000 and 300,000 Panther alumni. FIU is ranked No. 4 Best Public University by the Wall Street Journal and U.S. News and World Report places dozens of FIU programs among the best in the nation, including international business at No. 2. Washington Monthly Magazine ranks FIU among the top 20 public universities contributing to the public good and Degree Choices places it among the top 10 in the nation for return on investment.

• Sun. Apr 14th, 2024

Using the Tourism Sector to Boost Your Real Estate Business

By Real Muloodi Reporter

UGANDA, Kampala | Real Muloodi News | Tourism and real estate are two distinct industries yet related. With tourism, people travel and stay in places outside their usual environment for leisure and other purposes.

The link between tourism and real estate integrates developments that include entertainment components such as parks, hotels, among others, constructed along with residential and commercial real estate facilities.

The real estate and tourism sectors in Uganda have grown and are both complementary. How can one boost their real estate business through the tourism sector:

Infrastructure Improvement

Tourist hotspots typically have infrastructure and facilities available that are constantly improved, such as the road or highway, hotels, restaurants, and entertainment centres, among others. The amenities associated with those areas or locations should be prioritised and developed.

If you own property near such areas, the value of your property will increase due to the available amenities that will make it more convenient for your tenants or potential buyers.

Desirable Location

Because of the popularity of certain vacation destinations that attract many people, real estate performs better in tourism hotspots. These hotspots have the potential to accommodate luxury developments, making it a desirable location for many because properties in such areas will be in high demand and will increase in value over time.

Attract Expatriates

Expatriates appreciate the convenience of high-end facilities and amenities near tourism hotspots. They prefer to stay in areas that make them feel more at ease. This contributes to an increase in capital and rental value because foreigners are willing to spend for a comfortable home or rental.

Rental or Vacation Homes

Short-term rentals are popular among tourists and backpackers because they are affordable and convenient, despite the availability of numerous prominent hotels, motels, and resorts.

Developers may choose to build residences sold to the general public but are leased back to the developers for vacation rental purposes. These agreements are usually done with Guaranteed Rental Return (GRR) properties, as most buyers view them as an investment.

Residential Tourism

Residential tourism transforms places to urbanisation which attracts real estate investors and potential clients. Investing in residential tourism raises land prices or property values.

Development of Large Scale Tourism Resources

The development of large-scale tourism resources such as resorts, theme parks, and residential/vacation properties characterised by tourism real estate model would help increase property value.

If you have a real estate press release or any other information on real estate that you would like featured on Real Muloodi News Network, do reach out to us via email at [email protected]

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