The first project we are funding is located in La Molina, a favorite ski resort for locals, although undiscovered by international tourists.
We are delighted to announce that today is the day when InRento is expanding abroad. We start financing operations in Spain with investment offers in local short-term rental projects. According to the company's representatives, investors can expect similar returns as they earn from a rental property in Lithuania, which is around 6%-7%.
People investing in real estate projects in Spain will also have the opportunity for a timeshare which means they will be able to stay in the property for a certain number of nights per year, depending on the amount they have invested.
Germanavičius spoke of InRento’s natural expansion into Spain, commenting that "there are experienced professionals from Spanish real estate market among the shareholders of InRento. I have also worked with investing in real estate in Spain. This is a well-known market for us, therefore our expansion into Spain had been decided upon, even before InRento was founded”.
After gaining experience of operating in the Spanish property market, further expansion into Western European countries will be the way we evolve in the future. “We don’t think we will grow overnight but this decision is undeniably the beginning of consistent growth for InRento,” Germanavičius added.
Collaboration with experienced professionals
We work with local consultants and specialists in the Spanish real estate market to help assess potential projects and risks. Juan Alonso-Alonso, one of the InRento's shareholders and an experienced institutional investor, brings considerable experience to the table. He is a former Co-CEO of Dutch banking giants ING, working for both ING Direct France and ING Nationale Nederlanden Spain and has extensive knowledge of European real estate markets.
"In cooperation with partners, we devote a lot of time to market analysis. The pandemic has already shown us that the return from apartments in the tourism segment is constant, and short-term rental properties have great potential. However, we work not only with professional advisors, but also experienced asset managers to ensure reliable and flawless operation of processes. The owner of our first project in Spain has more than 70 short-term rental properties, so he is well versed in the smallest nuances of the market,” said the CEO of InRento.
Focus on Mediterranean and mountain resorts
Spain has a very large and diverse property market, and we will be specializing in the specific niche of short-term rental projects. Initially, our focus will be on the Iberian mountain resort of La Molina and the Mediterranean region on Costa Brava in the north-east of the country. Going forward, we plan to to finance projects all over the east and southern coasts of Spain - in Barcelona, Valencia, Cadiz and others.
"Tourism has been booming in Spain for the last 50 years, making the prospects of investing in short-term rental projects extremely high. The tourism sector was not significantly suppressed even by the pandemic, with domestic tourism continuing even during Spain’s extended lockdown. For the last 18-months, smaller towns have been the most stable, and so we intend to focus on them first,” said Gustas.
According to Gustas, real estate prices in Spain are still comparably low, having not fully recovered after 2008 financial crisis. Given the potential of tourism in the country, the climate is extremely favorable for high returns on the right type of real estate investment.
“As the winter season approaches, now is the perfect time to invest in mountain regions, in particular those where ski resorts are located. As a result, the first project we are funding is located in La Molina, a favorite ski resort for locals, although undiscovered by international tourists. The resort has excellent connections to Barcelona, providing it with the infrastructure to easily welcome international visitors arriving at the city’s El Prat airport. We have absolutely no doubt that we will offer similar projects in the future,” said Gustas.
Exceptional market conditions increase the potential
Gustas emphasizes that from a long-term perspective, the potential to invest in certain regions of Spain benefits hugely from the state's policy on holiday rentals.
"In Spain, many places already require a rental license to engage in this activity. This creates a big price difference of as much as 20%-30% between real estate with licenses in place and those without this documentation. So far, we have planned to launch in regions where the state does not yet require a license. However, the trends show that in the future we can expect the scope of regulation to expand to include our areas of activity. Because of this, we have factored in the need to comply with licensing requirements at some point in the future,” he said.
Timeshare opportunity
We will also offer clients financing our real estate projects in Spain an exciting and unique innovation: the opportunity to stay in the apartments or houses they are invested in.
"Timeshare is a trend that originated in America that has become widespread throughout Western Europe in recent years. Depending on the amount you invest, you are able to spend a given number of nights during the season and off-season at the property you have funded. This helps to enhance your investment and offers real enjoyment beyond the financial returns,” said, the CEO of InRento.
