To carry out our business plan, we have assumed that, throughout the life of the project, it will be rented on a half-stay basis during the periods of October to May, and on a holiday rental basis during the summer months from June to September (included). The model that we are currently using and is working.

In other words, we start from the premise that the vacation rental will not be recovered at any time. A conservative assumption since, if we can rent the apartment on a holiday basis throughout the year at least in 2023 and 2024, the income and profitability of the project would increase considerably. (The month with the highest vacation income in Cádiz is February, due to carnivals).

It is also important to take into account the characteristics of the real estate market in Cádiz, where the land is geographically limited (it is a peninsula), and there is a high demand due to the presence of universities, hospitals and other public bodies (City Council, etc..).

Finally, add that the historic center of Cádiz is the main tourist attraction in the city, since it is there where the main tourist attractions are located, the Cathedral, La Torre Tavira, the Gran Teatro Falla.

Half stay rental (October - May):

To estimate the half-stay income, we have taken as a reference the income at which we have rented our current apartments, specifically our opportunity at “La Caleta” (smaller apartment without terrace), rented for 530 euros per month.

Only the presence of the University of Cádiz, with more than 20 thousand students and almost 5 thousand employees among professors and other service professionals, causes a high organic and stable demand, which absorbs all the supply. If we did a quick search on Idealista (the leading portal in Spain), and we looked for furnished apartments in the historic center, we found only 109 properties.

Holiday rental (June-September)

Even this year, with the COVID crisis, vacation rentals this year have worked very well in Cádiz (in Brickstarter in terms of income it has suffered a drop of only 5% compared to 2019), and even in low season, we are having occupancy rates much higher than those we have in other areas such as Valencia, Seville, Malaga or even Alicante.

To estimate the income of the vacation months, we have taken as a reference the income obtained in the vacation regime in 2020, the year of the COVID-19 crisis.