Investing in supermarkets is not something the average property investor thinks of first. However, this does not mean that it is a lesser option than the more traditional forms of real estate investment. Supermarkets have something to offer in a unique way. That is why it pays to find out more about them.
Why invest in supermarkets?
In principle, investing in supermarkets is something you do when you consider the specific advantages. To find out, it is important to first find out the specific advantages of this investment option. The most important points in this area are:
- Very stable sector: The supermarket sector is generally a very stable one. This has everything to do with the fact that people always need groceries. It is a basic necessity of life. The likelihood of large fluctuations in this sector is therefore extremely small. The need for supermarkets is simply always there. So if you like to choose a real estate investment with a minimal chance of cyclical movements? Then investing in supermarkets is probably the right thing to do. Just about 70% of all daily food comes from the supermarket. Demand is rarely so stable.
- Crisis-proof: Another important advantage is that an investment in a supermarket is also crisis-proof. If there is anything investors fear, it is a possible financial crisis. During the corona crisis, for example, there was a lot of fear. The nice thing is that this hardly applies to supermarkets. People continue to spend money on food and drink from the supermarket even in times of crisis. In some cases, even more than usual. A property investment in supermarkets is a good example of an investment that can withstand many a crisis.
- Often optimal location: Another clear plus is that supermarkets are often in very central locations. These central locations are generally very popular. This means that the value of these properties is on the high side, but so are the value increases. Properties in the form of supermarkets are almost always in locations that are very future-proof. Locations that will probably not lose their value even in 10, 20 or even 30 years' time. Insofar as it is possible to look that far into the future.
- High efficiency: With a efficiency of around 6 to 8% this appears to be a particularly lucrative investment opportunity. This is a lot higher than a number of other investment options. Moreover, you share in the expected increase in value of the specific properties. On top of that, there is the short-term cash flow; the rental income. Note that the costs of maintenance, management and owner's charges are deducted first. Nevertheless, the bottom line is a very attractive return.
What to consider when investing in supermarkets?
Investing in supermarkets is not something you should do lightly. It is advisable to take a number of points into consideration. By doing so, you significantly increase the chance that you are making a worthwhile investment. One that will actually benefit you. You can achieve this by thinking about the following things:
- Demography of the area: The success of a supermarket depends very much on the surrounding population in the area concerned. For example, the more inhabitants there are, the greater the potential number of customers. Not only for now, but certainly also with a view to the future. In addition, things like the spending patterns of the people in the surrounding area also play a role. The subdivision of the wealth classes thus provides a lot of valuable information. If it looks favourable, your investment in supermarket property will probably yield more in the long run. So it is not only important to look at the property itself.
- Quality of real estate: Nevertheless, the property itself remains of decisive importance. After all, the property must be of high quality. It is what makes or breaks everything. Unexpected decreases in value sometimes occur when extra maintenance is suddenly required. To name but one example. It then pays to draw up a clear multi-year maintenance plan. Where are the possible weak spots in the property you have in mind? And what will this possibly mean for the return?
- Visibility and accessibility: The visibility and accessibility of a supermarket are points that should definitely not be overlooked. After all, a supermarket has to be able to cope with the constant stream of customers. Ideally, there should be no problems with things like parking. In addition, it is valuable when a supermarket is clearly in sight. For example, along a major road or in the vicinity of a shopping centre. That way, the customer base is not just limited to people who know exactly where the supermarket is located.
- Proper providers: Finally, of course, there must be an opportunity to invest in supermarket real estate. You should be able to choose from reliable providers. Supermarket real estate providers who conduct proper research and thus know how to provide you with adequate information. Examples of such providers are Reyersen van Buuren, Dune Meadow Investments and Annexum. With them, you can clearly see that the offer has been well thought out. Especially with regard to the aforementioned points.
Investing in supermarkets with Immotokens
So, are you currently considering investing in supermarkets? Then it is very valuable to have one more piece of information. In general, investing in supermarkets is a complicated process. However, it is possible to make it a lot easier for yourself. You can do this by choosing to invest in supermarkets via Immotokens.
This innovative method allows you to invest in the digital version of a supermarket without any problems. Using blockchain technology, fully verifiable digital versions of supermarket premises have been created. Since you can divide these into several pieces, you can easily become a real estate investor. And you can do so from as little as €50. Now see what is possible with the revolutionary Immotokens!