In recent years Central Florida, especially like Orlando’s cities and surrounding communities, have seen an incredible increase in demand for residential homes. Residents of regions in the north of the United States, such as New York, for example, are part of the public that decided to change homes to remove the climate of Florida. However, another audience is also significantly impacting the real estate market in the region: Investors. Banks and companies driven by nearly 25% of purchases in Florida, with an eye on the high expected returns from this type of investment.
The strategy is reasonable, as the Orlando region has been appreciating around 10% a year since 2017. In 2021 alone, real estate in the region appreciated by almost 20%, causing the average price of real estate in central Florida to beat the record and hit the $325,000 milestone.
The Tampa Bay area is also in the sights of investors, with around 24% of purchases on behalf of companies and banks.
This behavior puts even more pressure on an already heated market with low inventory. And the situation tends to get worse, as homes purchased by investors increase by 10% every quarter.
Investors bring an unequal competition in the market, as an individual buyer who really needs a home can hardly beat the offers of large companies and banks, which are able to cover prices in an eventual dispute.
About AMG International Realty
AMG Internatinoal Realty is a global real estate company specialized in Florida. If you want to learn more about Miami and Orlando real estate market, get in touch right now and chat with me on WhatsApp: +1 (305) 318 6968 (Heloisa Arazi).