According to the survey to 100 top developers conducted by Berger Singerman, it is believed that 2016 would be strong year despite slowing sales and price gains in the condo market.
42% of respondents expected 2016 to be a better year than 2015 and roughly 37% predicted that things will remain the same as this year. Only 13 out of 100 developers were negative about the 2016 market performance.
The biggest concern is that the struggling economies in Latin America and Europe limit the outflow of foreign investment, which has fueled South Florida real estate since the recession. New condo market is the one of the segments that has benefited the most and grown the fastest, making it an important local economy driver. As a matter of fact, over 60% of respondents chose “global economic conditions and uncertainty” as their major concern in the 2016. However, the bright side is that the selling price of single-family homes is still soaring caused by limited inventory.
Another interesting trend is more diversity emerges in the market. While 26% of respondents said condo development will be most profitable, hospitality (21% of respondents) and retail (20% of respondents) were also expected to have a promising future.
