A multifamily building is a Real estate project residential, where all of it is 100% rented, instead of being sold to end customers. That is, it has a single owner and is intended for rental.
The business of multifamily residential buildings is highly developed in other parts of the world such as the USA, Canada, Mexico, Europe and, currently, one of the countries in South America that has experienced very strong growth in this type of business is Chile. , especially in the last 5 years, where there are already close to 100 buildings of this type, and it is expected that by 2023 they will reach 120. As for Peru, due to the real estate boom and the significant housing deficit, this market has a lot potential for the coming years.
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“It is a business of institutional investors (Investment Funds, Insurance Companies, Family Offices), who invest in this type of projects in order to rent them 100% and, to operate them, they need a professional residential rental company with a lot of experience. experience in management, not only in the matter of rentals (Asset Management), but also of the entire property (Property Management) for the management of common spaces, gardens, elevators, concierges, etc, and that is where we as Assetplan we have highly developed expertise” explains Cristián Riesco, Commercial and New Business Manager of Assetplan Peru.
Along these lines, Cristián Riesco explains the benefits of the Multifamily business, an upward trend for the coming years in the Peruvian real estate market and an excellent alternative for institutional and real estate investors. “As it is a centrally managed building (both the rents and the building itself), it allows for comprehensive and rapid resolution of problems that affect the entire community or part of it. The fact that it belongs to a single owner helps to ensure that maintenance is done properly and in due time”.
The executive highlights that in Chile they have done more than 150 consultancies for the development of this type of project. In Peru “We have already carried out nearly 10, both for investment funds and real estate agencies that are very interested in developing this type of building, both for its potential as a business and for its contribution to the development of housing in the country.”
Riesco also adds that it is relevant to detect very well the development potential of this type of project: “Through our consultancies, we can considerably increase the efficiencies of the project, both at the level of building design and business flows; A swimming pool on the top floor is not the same as on the first, nor is it the same with glass railings than metal railings. It is also very relevant to detect very well the typologies necessary for a certain district or the costs of operating a building (janitors, gardens, common spaces, etc). For this, the consultancies that we carry out are very useful to determine the profitability of the business and its potential execution.”.
“In addition, the development for rent is very different from that for sale, therefore, it is very necessary to analyze in detail what is useful for this type of project, which in the end translates into better profitability for investors and, on the other hand, and very relevant, in a much better user experience for future tenants and the correct use that is given to the entire asset”adds Riesco.
In this sense, “At Assetplan, we are very happy to be providing consultancies for this type of project in Peru to different actors in the real estate world, who see Multifamily buildings as an opportunity to generate very good returns and, in turn, to begin to close the gap of the housing deficit in Peru”concludes the executive.
Currently, Assetplan (www.assetplan.pe), through their own platform and application, they are the bridge between owners and tenants, since they manage the relationship between the parties and offer personalized attention. In addition, they directly advise construction companies that want to develop this type of rental-only buildings and then manage them, with the expertise of operating more than 30 Multifamily buildings.
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