Floridian property market

It is estimated that 1,000 people move to Florida every day, thus it is unsurprising that Florida’s residential growth continues to increase both in sheer volume of construction and in appreciation. Long hailed for explosive suburban growth, new lofts, apartments and condos are going up in downtown Jacksonville, Miami, Fort Lauderdale, Orlando, Tampa, St. Petersburg, Sarasota and elsewhere. Favoured holiday home areas include the central area around Orlando and Disney; the south-eastern coast from Palm Beach to the Florida Keys; and gulf resorts on the south-western coast, like Naples and Venice.

Pros and cons

Florida nicknamed the ‘Sunshine State’ because the sun really does shine there for most of the year. Temperatures range from an average of 25 degrees centigrade in December to February, to 28 degrees in March to May, rising to 31 degrees in June to August; gradually cooling down again by November. This along with a plethora of spacious, affordable luxury homes and tourist attractions like Disney World, the Kennedy Space Centre and the Everglades National Park makes Florida a surefire investment proposition. When the exchange rate is favourable the argument for Florida becomes even stronger. But hurricanes are a big issue in Florida, and wind-proofing property with everything from whole-home standby generators to super-strong windows could set potential investors back by $75,000. Distance may also put some investors off - flights from London to Orlando, Miami and Tampa take eight, nine and ten hours respectively. However, there are plenty of holiday home management firms out there to help keep things running smoothly.

Property hotspots

Central Florida, centering on Orlando, is where most tourists go since the area houses Disney World, Universal Studios and many other big attractions, as well as some beautiful countrysides. Prices reflect that but many still represent good value for money and well managed condominiums can still be snapped up relatively inexpensively. For spectacular beaches and scenery, try the less well-trodden Gulf Coast or head for north-east Florida and resorts like Daytona Beach, widely tipped for a revival of fortunes.

Investment rationale

With Florida’s real estate market experiencing a boom in recent years (the average sales price increased by 87% between 2000 and 2005) the Sunshine State offers the possibility of significant capital growth as well as solid rental returns. The long rental season - between 30 and 36 weeks a year should be achievable - provides scope for more than covering mortgage costs, but check out for restrictions on short-term lets, imposed at county and community/condominium level, before purchasing.

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Floridian property market

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