This month, we’re focusing on property news in Orlando. Keep reading to find out what’s been going on recently in The City Beautiful.
New Disney expansion continues to turn Orlando into hotspot for international real estate investors
In 2017, it’s reported that Orlando welcomed 72 million tourists, mainly thanks to the popular Walt Disney World Resort. Now, with plans to expand beyond its current 40 square mile footprint, Disney is expected to turn the city into a hotspot for international real estate investors.
Disney World is due to open its highly anticipated Star Wars land attraction in late fall 2019, while its impressive World of Pandora at Animal Kingdom park opened just last year – both of which are major selling points for investors looking to purchase property in the Orlando area.
The number one destination
Speaking to travel company Visit Orlando, CEO of real estate agency OneWorld Properties Peggy Fucci said that international investors have been among the main investors in Southern Florida and are now considering Orlando “because the returns are good” due to tourism.
According to consultancy specialists Dataloft, Florida is the number one destination of international investors buying real estate in the US, and Orlando is second only to Miami – with Latin Americans accounting for 34 percent of buyers.
A positive cash flow
Bill Lee, manager of new resort complex The Grove, which is just a short distance from Disney World, points out that investors want “something that appeals to them as a home”, adding that choosing to rent out Orlando-based properties offers a “positive cash flow just because of where it is”.
Orlando ranked 29th most expensive place to rent
Orlando has been ranked the 29th most expensive place to rent a one bedroom property among the 100 largest cities in the United States.
According to a new report by online rental company Zumper, the median rental price for a single bedroom apartment in the city is $1,270 per month – a 4.1 percent increase since May. This is also a 15.5 percent rise compared to the median last year.
While this a tall price for renters to pay, higher rental costs make apartment complexes in Orlando more attractive to real estate investors, including those looking to buy property and renovate it.
It’s not just single bedroom properties that are on the rise. In its report, Zumper also noted that rents for properties with two bedrooms are also going up. Between May and June, the median price for this type of property in Orlando has increased by 3.5 percent to $1,460 per month.
In the rankings, rental prices for one bedroom properties ranged from $3,590 per month in San Francisco, to $590 per month in Lubbock, Texas.
Home prices steadily rise as sales fall
According to the Orlando Regional Realtor Association (ORRA), the number of homes for sale in the Orlando area dropped to its lowest this year in May, while sale prices continue to rise steadily.
It reported that the overall median price of homes sold in Orlando in May of this year was $234,000 – a 7.3 percent increase on the median recorded in May 2017 of $218,000. Meanwhile, sales of all home types declined throughout the month.
Speaking on behalf of the ORRA, company president Lou Nimkoff pointed out the market is currently filled with “buyers who want to buy but sellers who don’t want to sell out of concern that there is no place for them to go”.
Furthermore, distressed sales, such as foreclosures and short sales, reached 120 in May, which wass 70 percent less than the 282 sales that were made in May of last year.
Keep an eye out to see which part of Florida we put in the spotlight next month. If you need more information about selling Orlando property, don’t hesitate to get in touch with us today.