Direct property investment is often associated with buying a home to rent out. But the range of opportunities is much broader. Commercial premises, hotels, holiday apartments, entire buildings and property portfolios offer different ways to generate returns and build wealth.
This perspective is guiding the evolution of Urbanitae Direct Investments, our direct real estate investment service. It enables investors to acquire 100% ownership of individual properties or portfolios, providing access to carefully selected opportunities and professional support throughout the process.
Beyond residential property investment
Since its launch, Direct Investments has offered opportunities in new-build and existing homes. With new-build properties, the advantage often lies in accessing developments at an early stage, with attractive purchase terms. With existing properties, it lies in identifying assets capable of generating rental income or offering potential for capital appreciation.
However, changes in the market make it worth broadening the scope. In many locations, property purchase prices have risen faster than rents, putting pressure on the yields of certain residential investments.
In this context, let commercial premises, tourism and hospitality assets, and properties managed by specialist operators may offer interesting alternatives for investors seeking recurring income.
This does not mean moving away from residential property. New-build homes and income-generating residential assets remain part of Direct Investments. What is changing is the approach: rather than simply distinguishing between new-build and existing properties, what matters is understanding how each opportunity creates value.
Two strategies: recurring income and capital appreciation
At Direct Investments, we distinguish between two main types of opportunities, depending on their primary source of returns.
Income-generating assets: recurring income with professional management
This strategy focuses on properties that are already let or whose operations are managed by a third party. These opportunities aim to generate regular income through lease agreements or operating arrangements.
They may include:
- Commercial premises let to established companies and operators.
- Hotels, individual hotel units and holiday apartments operated by specialist companies.
- Homes, buildings and property portfolios that already generate rental income.
- Alternative accommodation assets, such as coliving, flex living and student accommodation, managed by specialist operators.
The appeal of these investments lies in combining direct property ownership with the possibility of delegating day-to-day operations.
For example, with commercial premises let to a supermarket chain, the owner receives the agreed rent while the tenant runs its business. In the case of an individual hotel unit, operations may be handled by a specialist company.
However, the quality of the property is not the only relevant factor. It is also necessary to assess the financial strength of the tenant or operator, the length of the contract, the cost structure and the options for selling or reletting the property. Receiving a fixed rent is also very different from earning variable income linked to operating performance.
Capital appreciation opportunities: buying well to create value
The second strategy aims to increase the value of a property over the medium or long term.
One particularly important category is new-build properties acquired during the early stages of marketing, which Urbanitae can access thanks to its relationships with developers and knowledge of the market.
Buying at an early stage may provide access to attractive terms and the opportunity to benefit from potential appreciation as the development progresses, although it also involves development, timing and market risks.
This strategy may also include properties with potential for refurbishment, repositioning or a change of use, where value creation depends both on the purchase price and on successfully carrying out the improvements.
Ultimately, the aim is not simply to buy a property and wait for its price to rise, but to identify opportunities with a clear value-creation strategy.
Full ownership and a wealth-building perspective
An essential feature of Direct Investments is that the investor acquires 100% ownership of the property or portfolio of properties.
This allows investors to add entire properties to their wealth, benefit directly from their income and any potential capital appreciation, and retain decision-making control over their investment.
It also enables them to build a property portfolio across different asset types, locations and income sources, combining, for example, residential properties with commercial premises or tourism assets.
This is particularly relevant for investors with greater financial capacity who are looking for larger transactions and a wealth-management approach to property investment.
Of course, full ownership also means directly assuming the risks of the investment. Capital concentration, costs, income performance and selling conditions must all be considered when assessing each opportunity.
Direct investment with professional support
Owning a property does not mean having to manage every stage of the investment yourself. That is one of the main advantages of Urbanitae Direct Investments.
Our team identifies and analyses property opportunities, assessing their location, purchase price, market comparables, estimated returns, contracts, costs and exit potential.
From there, support may cover acquisition and completion, coordination of refurbishment works, access to property management and operating services, and assistance with a potential sale.
For income-generating assets, having a corporate tenant or professional operator can substantially reduce the time and involvement required from the owner. Where additional work is needed, Urbanitae can also help coordinate it through specialist partners, subject to the corresponding costs.
The investor retains ownership and decision-making control over the property, while benefiting from professional support to simplify the investment process.
A different way to build a property portfolio
The evolution of Direct Investments reflects one central idea: investing directly in real estate is not just about buying homes, but about identifying suitable assets for different wealth-building objectives.
For some investors, the priority will be generating rental income from properties let or operated by professional companies. For others, it will be accessing properties with capital appreciation potential. Others may wish to combine both strategies.
With Urbanitae Direct Investments, we aim to make a broader, more professional approach to property investment accessible, allowing investors to retain full ownership of their assets while drawing on specialist expertise throughout the investment lifecycle.
Because investing directly in property does not mean having to do it alone.
