Downtown Miami is the hot spot for long term investors and end-users. Fannie Mae’s approval of several condominiums for financing in Downtwon is contributing for single investors to take a share of the appealing Downtown Miami market, even more in current times, when Downtown’s permanent occupancy numbers are favourable. Recently approved buildings for financing in Downtown and Brickell by Fannie Mae are Vue at brickell (picture on the left), Club at Brickell Bay (picture below to the right) and the Marina Blue (picture below to the left).
As we wrote in this blog in March, (read the blog: Residential Closings and Occupancy Study reveals positive results for Downtown Miami) already 74 percent of the new units built since 2003 are occupied in downtown, in contrast with 2009 levels of 62 percent occupancy. This occupancy is mainly of renters, as real estate agents and analysts have observed that every time less units are available for rent downtown.
2009 buyers were mainly cash buyers, while financing options are opening doors for more and more clients to compete with investors. Also small investors are joining the downtown real estate scene again because of the new financing options and products. End-users and small investors are currently renting units in downtown, waiting for a better climate to sell their properties. This is a switch in the mentality of investors, who now buy expecting revenues in the middle and long terms.
Those renters living now in Downtown Miami are bringing a good season to the area, while retail spaces and restaurants also increase to supply the permanent residents’ needs. Our Residential Closings and Occupancy Study reveals positive results for Downtown Miami blog also contains information about this, marking that Downtown Miami is one of the areas with the lowest retail space vacancy in the US (only 5,06 percent vacancy by March 2010). Very positive behaviors are expected in Downtown Miami’s economy in the time to come.
From 82 condos built during the construction boom, 35 condos are sold out and other 24 of them are at least 50 percent sold. According to some real estate analysts, like Lewis Goodkin -president and chief executive officer of Goodkin Research Copr., one of the firms that conducted the cited occupancy study-, the new investors and occupants “have really accelerated absorption in the downtown area”, from which we can expect new projects to come, and prices to recover as supply becomes short in front of new local and international demmands -mainly from Latin America and Europe.
Our real estate advisors at Go Miami Condos would be glad to solve your inquiries on the Downtown Miami real estate market, and other local markets, as you make your desition to put your assets in a profitable middle and long term high-revenue investment. Contact us today to catch up with other small and individual investors already making good numbers out of the market.
By Antonio Bendek
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