It seems that there are always people who worry that the end of the South Florida real estate boom is just around the corner. While it is smart and practical to be aware of potential problems in any area of business, you will find that most people now believe the boom in Miami is nowhere near to being over. In fact, they feel that it could become even bigger this year and beyond.
South Florida Real Estate Continues to Grow
A survey from Berger Singerman found that most of the real estate professionals involved with the survey have a very bright outlook when it comes to the market, especially when it comes to commercial real estate.
They see growth in many areas. A partner at Berger Singerman, Jeffrey R. Margolis, has said, “The increase in optimism for the industrial sector is a result of the need to locate distribution centers in areas that can accommodate same or next day delivery of e-commerce purchases. The increase in the industrial sector goes hand-in-hand with the decrease of the retail sector; the growth in e-commerce drives demand for distribution facilities while diminishing the need for traditional retail stores.”
When industrial and commercial sectors grow, it can help to create jobs. More jobs mean a better economy and an increasing need for housing. This has the potential to help the residential real estate field, as well.
More Results from the Survey
One of the other bits of insight from the survey was that 62% of respondents believe that foreign investment in South Florida real estate will continue to be high, even though there are some uncertainties today when it comes to the United States and foreign relations. They believe that most of the investment will come from Latin American countries, as well as China, Europe, Canada, and locations in the Middle East.
Even though most of the results shows that there was quite a bit of positivity surrounding the South Florida real estate market, 57% said that global economic conditions were a concern and that they thought they had the potential to affect the market in South Florida.
In addition, 32% of people who responded to the survey believed that the Zika virus could cause problems for the hotel and hospitality industry. When breaking down the age groups of those people in that percentage who believed this could be a problem, only 27% of them were baby boomers, and 32% were from Gen-X. The other 41% who believed it could be a problem were millennials, likely because they have more of a chance of being affected by Zika.
Some worry about some potential issues that could develop in the residential property market, as well. They feel that there could be an oversupply of residential properties, and not enough industrial property. If that is the case, it could cause the residential property prices to drop somewhat. This might be bad news for sellers, but it would be welcome news for buyers who are interested in buying South Florida real estate. It will certainly be an interesting year to see what happens with real estate.
Resources: provided by client http://www.floridatrend.com/