Expo Real | Market Observations: Holiday properties – a niche market with prospects for success
“EXPO REAL has once again demonstrated, particularly this year, that it is the industry’s leading trade fair and provides a platform for discussing existing challenges, potential solutions and opportunities,” emphasises Stefan Rummel, CEO of Messe München. A total of 1,856 exhibitors from 36 countries (compared with 1,887 from 33 countries in 2022) and more than 40,000 attendees from 70 countries (compared with 2022: 39,932 / 74) travelled to Munich from 4 to 6 October 2023 for Europe’s largest property and investment trade fair.
The fact that opportunities can also arise from niche markets was evident in certain areas of the fair. Between residential property and the hotel sector, a segment has been emerging for some time that combines the ‘best of both worlds’ and is becoming the secret winner of the property industry: the holiday property segment. Unlike other sectors, this asset class has proved resilient to crises and is making a name for itself in small steps with a big impact. After all, Germany is the world champion of travel. Germans travel a lot and enjoy doing so. Even in times of crisis, they are reluctant to give it up. Rising airfares are making nearby destinations particularly attractive to holidaymakers. And where there are holidaymakers, there are also investors – usually not far away. Holiday properties with management concepts offer an attractive investment opportunity where the investor doesn’t have to worry about a thing. This is because the management concept ensures that an on-site team takes care of everything – from letting the property and maintenance right through to welcoming guests.
Clavis International specialises precisely in this area and is one of the few players in this niche. The focus is on: Holistic concepts that combine an exclusive living environment, leisure activities and comprehensive resort services in a private atmosphere. This ensures an increase in value and, consequently, high returns. Sustainability plays an equally important role in this context. Above all, however, the year-round operation of holiday resorts makes these properties an attractive investment opportunity. The holiday properties are maintained by the operating company and their range of facilities is tailored to the wishes and needs of holidaymakers. Beyond the established destinations, a comprehensive infrastructure concept that operates across all seasons is crucial to the success of a sustainable holiday resort.
Discussions at EXPO REAL reveal that this niche has firmly established itself amongst the major asset classes and is holding its own, particularly in times of crisis – when the concept, the design of the properties and an experienced operating company come together.
Construction methods, ESG issues and creative concepts are key factors.
Furthermore, timber construction methods are (finally) financially competitive and also score highly with a good carbon footprint. Serial construction, as increasingly offered and professionalised by more and more companies, can reduce costs and speed up construction for both new-build and refurbishment projects. Overall, the trade fair demonstrates that the crisis offers plenty of opportunities for bold, innovative companies. Good concepts with a distinctive character will continue to prevail. ESG issues and sustainable construction are more important than ever.
Published on 9 October 2023
