Recently, many people have been asking me the same question: Is urban renewal (Pinui Binui) profitable, and how much can be earned from it?
This is a topic that concerns many property owners in recent years, especially given the growing trend of urban renewal projects across the country.
As someone who accompanies urban renewal projects, I can say that there is great potential for profit – both on a personal level for property owners and on a general level for the value and improvement of the property. However, like any real estate investment, it’s important to thoroughly and deeply examine the matter to truly understand what can be gained and what the risks are.
How does it work?
The idea behind a Pinui Binui project is simple: take an old building, often in a deteriorated or outdated condition, and build a new, modern building in its place, with much better conditions for the residents. In this process, each resident receives a new apartment, often larger and more spacious, with improved conditions and sometimes even additional space (such as a balcony, secure room, parking, etc.).
The renewal of the building and the entire area causes a significant increase in property values, sometimes by tens of percent. In other words, your old and unattractive property can turn into a luxury asset that is worth much more in the market.
So is it profitable?
Is Pinui Binui profitable? In most cases – yes! The value of apartments after a Pinui Binui project rises significantly, and according to estimates, there is an increase of 30%-50% from the original value of the apartment. This is a huge gap that can constitute a significant financial gain for the residents.
However, it’s important to remember that there are also challenges and certain conditions to consider. For example:
- Duration of the project: Such projects can last for many years and sometimes face delays and bureaucracy.
- Agreement among residents: For a project to get underway, the majority of the residents must agree, and this can often be a complex process in itself.
- Location: Not in every area is it worthwhile to carry out a Pinui Binui project. In some regions, property values may not rise dramatically, so it’s essential to thoroughly check the future value assessment of the project.
How to know if it’s worthwhile for you?
If you own an apartment in a complex where a Pinui Binui project is planned, or you have such an option in the future, I recommend exploring the matter with professionals in the field. It’s advisable to consult with a lawyer specializing in urban renewal, a real estate appraiser to assess the profit potential, and a development company with experience in such projects.
In conclusion, Pinui Binui is one of the strongest tools today for improving quality of life and enhancing the value of your property. If it’s a suitable complex and the residents reach the right agreements, the profit can be substantial and significant, both in the short and long term.