Do you know the current real estate boom in Orlando? In the popular imagination, Miami is the capital of the state of Florida and Orlando is one of its main cities. Actually, it’s a little different. The capital of the state is the city of Tallahassee, with a population of 240,223 inhabitants according to the last census, but it is true that Orlando is the third city with 1,510,576 million.
This city is known worldwide for its parks: Disney, Sea World, Universal Studios, etc., with tourism being the main engine of its economy. For this reason it is a very familiar city, in it you can find playgrounds, activities for children, family restaurants, excellent health services and high-level education.
It is no secret to anyone the impact that the pandemic caused by COVID-19 has had on the world economy, with tourism being one of the most affected sectors: at the worst moment ten percent (10%) of jobs in Orlando were lost. Thanks to the effective vaccination plan implemented in Florida and the incentives that the US Government has given to the population, the economy is recovering.
El Resurgimiento del Mercado Inmobiliario en Orlando Post-Pandemia
It is important to clarify that for three years; but, especially, since May 2021, the Orlando real estate market is experiencing an unusual rebound. Sales have increased to the point of decreasing the inventory of homes available for sale to historical levels: in April 2021 there were only 2,665 properties for sale which has valued the properties by $ 30,000 on average. Although it is still the same as the US national average.
Orlando: Top Destination for Global Investors
It should be noted that Orlando is the second favorite destination for international buyers, especially Latin Americans. Historically, Mexicans have been the ones who buy more real estate there, but now there are Colombians, Brazilians and Argentines interested in investing in the city. There are several reasons for this, such as the instability in Latin American economies and being the family tourist destination par excellence around the world.
If a family constantly vacations in Orlando, they will eventually think about buying real estate there. That’s what’s happening in Orlando: real estate investment has a quick return if rented on Airbnb and can even yield returns, even if a loan is used for its purchase. As in any real estate investment the value depends on the location, that is, the properties near the parks will have a higher value than the others.
Investment Strategies and Real Estate Market Risks in Orlando
The current economic situation requires being very careful with the investments made, especially in the face of the rebound of the dollar against Latin American currencies. If you want to get the best possible return, you must not only evaluate the behavior of the prices of each sector but compare them with the behavior of the average wages of its inhabitants.
It is important to learn how to avoid bubbles. A good method is to analyze the behavior of land prices against the average income of its inhabitants. If it decreases as the wages of the inhabitants increase, we are facing a solid, relatively stable market where the inhabitants have the ability to pay and there may be increases in the future. Otherwise, it may be a bubble because, eventually, people will not be able to respond with their obligations.
As mentioned before, the city government has given several fiscal stimuli in the face of the crisis generated by the confinements and closure of tourist attractions. The ZIP Codes where the inhabitants have increased their income are 32801 (41.4%), 32789 (33.3%), 32792 (28.3%) and 32804 (36.6%). The good news is that in these sectors prices have been declining, on average 5% in the last five years.
From all the information presented here, it can be concluded that this is the time to invest. When the pandemic is over, everyone is going to want to go on vacation and not hear about lockdowns again in a very good time. Orlando is one of the most touristic family cities in the country, where a real estate boom rarely seen is being experienced.
In PFS Realty Group given our real estate activity we are focused on advising those individuals and families who are interested in making investments of this type in Miami and South Florida, we have been working for more than twenty (20) years and for this, twenty (20) years that give us a specialty in what we do, If you want to explore real estate investment opportunities, we can schedule a meeting, face-to-face or virtual, to expand this information. Visit our website to learn more.