2016 seems to be a promising year for Florida's real estate market.
Berger Singerman law firm conducted a survey involving real estate insiders and it appears that it may be a good year for South Florida despite the price gains in the condominium market.
About 100 top developers, Realtors, investors, lenders and contractors for their take on the new year were included in the poll, according to Miami Herald.
Jeffrey Margolis, a partner at the firm says, "The overall consensus is that things are going to continue in a similar direction. 2016's going to look a lot like 2015. So while everyone is asking, 'Are we in a bubble? Is it all going to come crashing down?', the smart money says that's not the case."
Among the respondents, about 42 percent said that this year will be "somewhat better" than last year's. Meanwhile, about 37 percent predicted that there would be "no change" and only 13 percent said that they expected it to be a "somewhat worse" year.
But what could be the reason why growth is not expected as much? Miami Herald continues that the struggling economies in "Latin America and Europe are holding back the foreign investment that has fueled South Florida real estate since the recession, particularly the new condo market, an important local economic driver. (Single-family homes are still selling at a record pace because of tight inventory.)"
In light with this, above 60 percent of the respondents stated "global economic conditions and uncertainty" as the main reason for the loss or lack of confidence in the market.
Another thing discovered during the poll was that more developers are planning to build more than just condo skyscrapers. It seems that although 26 percent said that condo development would still dominate and would have the highest returns, the hotel and hospitality (21 percent) and retail (20 percent) sectors are not lagging behind either.
It is a noticeable change, said Berger Singerman partner Marc Shuster.
"We're definitely seeing more diversity in the market," he added. "Following the multi-family rebound, people have a feeling that these other areas are going to take off too."
