The profit you make in real estate varies depending on several factors. It includes your location, type of property, audience, trends, and buying interests. However, some real estate niches have been very profitable, irrespective of the determinants. Specializing in a particular niche will help you become an authority.
Are you a real estate agent or investor searching for a niche that will provide you with adequate income? Then you can narrow your marketing to any of these niches. Upkeep Media agency compiled below some profitable niches that you can focus on.
1. Commercial Properties
Commercial properties are properties that serve business purposes. They include shops, offices, malls, grocery stores, and so on. From surveys, agents in this niche make the highest income annually. An average commercial agent can make about $90,000 every year. The prices vary depending on the economic activity in the environment.
However, this niche requires training before you can become an expert. The commercial property niche has sub-niches. They include commercial offices, commercial retails, commercial self-storage, and commercial industries.
Commercial Office
This niche may range from single-tenant offices to skyscrapers with numerous offices. Local or small investors own smaller offices, but the big ones usually belong to REITs, funds, and other corporations.
Commercial Retail Properties
This includes shops, restaurants, and other retail shops. Here, investors make use of net leases. Tenants are responsible for maintenance, taxes, and insurance.
Commercial Self-Storage
This is another lucrative niche. Some investors prefer this because it serves only storage purposes, and no one resides in them. They wouldn’t have to worry about frequent complaints from tenants. Properties in this category are mostly warehouses or large garages. Their design is simple, and the competition is minimal.
Commercial Industrial
This involves properties for industrial operations or manufacturing purposes. The properties occupy a large portion of land, and agents need a lot of experience. It is a lucrative niche but not suitable for beginner investors.
2. Eco-Friendly Properties
Eco-friendly or eco-green properties are houses that keep humans and the environment safe. These properties make use of recycled and sustainable materials that protect the environment from harm.
Eco-friendly properties are trending and becoming more popular. Because of the high demand for these homes, they may even become more profitable in the future. Real estate agents who specialize in this niche receive more than $80,000 every year. But the agents need more training to be at an advantage.
Eco-friendly properties are usually LEED certified. LEED certification is the global standard for energy-efficiency in properties. And they subject buildings to rigorous processes before they certify any property.
3. Investment Property
Some people are afraid of investment properties because of the demands. Most beginners shy away from it. Although investment properties require a lot of training and years of experience, there are specific houses that beginners can try. The available options for investment property niche are:
Location-Based Niche
You choose locations where houses are cheap; then you buy properties in that area. If it is an upcoming neighborhood, the value of that property will increase in the future. When you notice this, you can sell the houses at a higher rate.
Renovation Niche
In the renovation niche, you acquire properties that are not in good shape. After you remodel them, the value of these houses will increase, and you can sell them at a higher rate.
Rental Property
Rental properties are a popular form of investment properties. It is easy to invest in them, and they provide a steady income every month. Investors in this niche can make up to $79,000 every year.
4. Luxury Properties
Luxury properties are expensive. That is because of the design, location, privacy, or quality of the building. The properties are unique, and agents here can make as much as $290,000 from a single deal.
5. Relocation Property
The relocation property niche is also lucrative, and agents in this niche are in high demand. That is because of the stress people face when they are relocating to a new environment, especially under short notice. Agents in this niche help to relieve their clients of the burden of relocation.
Apart from buying and selling the houses, the relocation property agents also have other responsibilities. One of these includes educating their clients about the new environment and helping them adapt to the area.
If you exceed the expectations of your clients, then be ready for more referrals. Relocation agents can earn up to $90,000 annually.
6. Target Specific Demographics
Target specific niche involves focusing on a particular group of people and providing suitable homes for them. Doing this will help you to narrow down your niche. The sub-niches available here include the following divorced, newlyweds, Millennials, Gen Z, Baby Boomers, and so on.
Business is all about making enough profit. As a real estate investor, it would be best to choose niches that guarantee adequate income. Contact us today for more expert advice from a property management company with over 30 years of experience.
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