No matter what your investment portfolio has been so far, UK estate agents can attest to the fact that some property purchases invariably bring better returns compared to others. The state and architecture of a property might be the primary concern of somebody finding a home for personal usage, but the parameters change if your purpose is to make the most money off of space. 

Possessing a diverse set of real estate is a lucrative move, but if you’re just starting out in the market, your funds and knowledge regarding the industry shall most likely be low. Thus, knowing what kind of properties guarantee success can be a boon for new investors.

The Best types of properties for real estate investments

Here are the top types of properties based on buyer satisfaction and returns generated that you should consider investing in.

Luxury homes

A luxe mansion never goes out of style. With the rapid increase in consumerism, buyers have been leaning towards big purchases. These properties may not seem affordable in the beginning, but the price appreciation on a single house can help you cover your expenses for years. 

Additionally, luxury homes are a hotbed for makeshift resorts, Airbnbs, and party locations. Renting out your estate once in a while can provide you thousands of pounds in returns while not putting you under a binding lease contract. If you’ve got the money to spend, they also make for great vacation destinations.

Flats in urban areas

Contrary to popular belief, recent statistics suggest that one-bedroom apartments bring the best rental yields out of all housing options at an average of 6.2% per annum. This figure gets further magnified in urban areas since the demand for homes increases in population-concentrated areas. 2 and 3 BHKs don’t follow far behind and provide an added perk of garnering attention from more reliable renters.

People have continued to move to areas that provide more opportunities for centuries now and it’s a trend that isn’t dying out any time soon. Hence, you might have to pay a higher price per square foot in major cities, but the ROI is certainly going to be worth the extra pounds spent.

Commercial real estate

From office spaces to warehouses, commercial real estate is what supports a country’s economy. It is one of the most reliable forms of real estate investments in the UK owing to the massive presence of both corporate bodies and micro, small & medium enterprises (MSMEs).

The potential for higher cash flow is one of the reasons commercial properties are regarded as one of the best types of real estate investments. Commercial properties tend to offer higher income potential, longer lease terms, and lower vacancy rates than other types of real estate. Commercial real estate investors may also benefit from less competition because purchasing these properties can be a larger undertaking compared to residential properties.

Empty land

Urbanisation has made empty pieces of land a rare sighting. As a result, businesses and big-ticket buyers are always on the lookout for new realty. While many investors are unfamiliar with raw land and new construction invest,ing, this type of investment can provide some of the most attractive profits. Putting your money in vacant land is one of the easiest forms of real estate investment since you do not need to worry about the construction of a building, its condition, aesthetic appeal, or furnishing. All you need to judge is the location of your purchase because the governing factor for the sale of bare land is its proximity to essential resources.

Conclusion

The number one rule for all investments is that they should fit your financial conditions and goals – the same applies to your real estate portfolio too. What kinds of properties you invest in heavily depends on how involved you want to be in their maintenance and accompanying legal obligations. Your capital risks and returns get bigger as you allocate sizable funds, so assess your prospects carefully. Referring to an industry professional in case of confusion, staying patient and being open to learning can sign you up for huge gains in the time to come.