According to a recent study, Florida is one of the top destinations to move in the US. South Florida is seen as a growing community where the market is relatively more mature. This was discussed during the forum focusing on “Sizing up the Development Cycle” facilitated by The Real Deal Magazine was attended by several big names in the Real Estate Industry including Edgardo De Fortuna, Arthur Falcone and David Martin. Mr. Defortuna is the President, CEO and Founder of Fortune International Group which is a Miami-based full- service real estate firm. Mr. Falcone on the other hand is an American real estate developer, CEO and Chairman of Falcone Group, a real estate and land development organization located in Boca Raton. He is also the developer behind Miami Worldcenter. Last but not the least, Mr. Martin is the President and Co-Founder of the Terra Group, the award-wining Miami based real estate development firm.
Mr. Defortuna sited that around 2010, we can see the rise in the development of buildings and luxury homes around the area. A lot of people have invested in buying lands for new projects. Nowadays, we can see that the market has relatively slowed down and we see less luxury projects being built. It doesn’t mean that the market is weaker or dropping. In a supply demand analysis, it just means that there are enough properties to accommodate buyers so there is a much lesser need (but not entirely no need) to invest in building new projects.
You might think that those people who have invested in the land might be losing money, but that is totally wrong. Mr.Falcone mentioned that “You don’t build cities in a ten year period of time..”. It takes a lot of years to build a community and holding on to the land is one of the wisest decisions you can possibly make.
There will be a time that the demand for luxury properties would be far greater than the supply. Especially now that brokers and Realtors are focusing on attracting not just buyers around the US but foreign buyers as well. So these people who have invested on land is just waiting for the right opportunity to come.
So what makes us so sure that these people are not going to lose their money in the long run?
Despite the fact that a lot of issues are being faced by the South Florida market, it still continues to be resilient to change. Weather Conditions has proved to be one of the greatest challenges of this coastal community. Mr. Martin sited that Florida has one of the strongest Building Codes has helped it survived strong hurricanes like Irma with less casualties compared to other coastal communities. International Laws/Issues are also one of the major hurdles for this market. We saw a decrease of buyers from the South American countries following the currency problems. We try to adapt by looking into other foreign buyers/investors and we are looking more into Asia and European Countries nowadays.
Another huge contributor of staying on top of things would be the way that Realtors and brokers handled Sellers and Buyers. Serving customers all the way through, participating in different affairs and continuing to promote the community has made a lot of impact in this market.
Through the years, the South Florida Real Estate Market has seen it’s best and worst times. Despite that, the market continuous to stay attractive to a lot of home buyers in and out the country. Challenges will still arise in the future but the market has proved time and time again that it will find ways to adapt to stay strong and competitive. Talk to your Realtor today and get more info on the latest statistics.