I’m considering buying a foreign studio apartment for rental income, but I’m not sure if they have consistent demand. Are Foreign studio apartments popular, and what kind of tenants usually rent them? I’d appreciate insights from those who’ve invested in studio units abroad.
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In my experience, Foreign studio apartments are a worthwhile investment, especially in areas with strong tourism or a significant number of digital nomads. I purchased a studio in central Barcelona, and it has consistently been rented by short-term tourists and long-term expats. Studios are easy to maintain due to their size, which keeps ongoing costs low. They attract a wide range of tenants, including students, young professionals, and tourists looking for more privacy compared to hostels. When investing in a studio, it's essential to prioritize location. Studios located near cafes, cultural attractions, and public transportation have a much higher occupancy rate. Another point to consider is the potential for price appreciation. Since studio apartments have lower entry prices compared to larger units, they are often more affordable and thus more liquid if you decide to sell. In my case, even during off-peak rental seasons, the affordability of my studio made it easier to maintain steady bookings. Overall, studios provide a good balance of low initial investment, manageable upkeep, and steady rental returns, making them an ideal choice for first-time overseas property investors.