The 2016 South Florida Real Estate Outlook Survey — With the end of 2015, nearly 100 developers, brokers, investors, lenders and contractors participated in a survey by Berger Singerman to help derive the opinions of local South Florida real estate professionals regarding the market and trends. Simply put, the results indicated a positive outlook in 2016 for the real estate market in South Florida, where real estate professionals showed optimism for expect activity to continue in 2016 much like in 2015.
Here’s what areas kept the topics flowing:
There were 37 percent of the real estate participants that believed foreign investment in South Florida real estate will increase in 2016, even if marginally, over the 2015 level with 34.12 percent of foreign investment to come from Latin American countries.
Multi-Family Investor Opportunities
Long standing multi-family investors are looking at other sectors to generate larger returns. Many are seeking opportunities in the hotel/hospitality (21 percent) and retail sectors (20 percent).
Pressures In Government Policy
25 percent believe that uncertainty of governmental policy is the most pressing issue facing the real estate industry.
Oversupply, availability of credit quality and credit, refinancing challenges, REO property and effect on pricing, foreign investment, and instability of community banks were also a concern by the real estate professionals in relation to pressures.
Gains In Hospitality Real Estate
Most expect considerable gains in hotel and hospitality real estate, with a surprising 60 percent currently not concerned about competition from Airbnb and other non-traditional providers, the survey indicated. The outcome implies that South Florida’s hospitality industry has not yet felt the repercussions of Airbnb and similar companies, but that all segments will eventually and unavoidably be affected, including luxury hotels.
Other Sectors With Gains
Real estate professionals also indicated that other sectors they expect to have gains include multi-family, retail, office, warehouse, and industrial.
In short, real estate professionals are still concerned with the global economic environment, however everyone remains optimistic. Marc Stephen Shuster, partner and co-manager of Berger Singerman’s Business, Finance and Tax Team said that “2016 is the story of confidence.” “With the strong dollar and despite the concern for the uncertainty of economic conditions around the world, global investors still see South Florida as the best bet for investment.”