By Sunny Isles Real Estate Expert on October 20th, 2012
Great news from the hotel sector reveals that Miami’s economy is on its way to a strong recovery. Tourism is obviously one of the most important industries in Florida on the whole and it is particularly important to South Beach real estate. The data from The Standard Miami Beach shows that people in the hotel industry will have a very good cause to celebrate.
According to the data, the occupancy rate in Miami hotels rose to 72.6 percent, an increase of 2.6 percent compared to last year. The daily rate jumped 8.3 percent. The data also show that the revenue available per room increase by 11.1 percent.
This has made it a very busy time for Miami hotel proprietors. With people flocking back to South Florida in droves, hotels are filling up and the amount of profit that hotel owners are able to make off their units has increased, as well.
Renting a hotel room is obviously not the only way that people come to the Miami area to vacation. Renting and buying South Beach Miami condo is also a popular option and that market has seen growth, as well. The many luxury developments in the South Florida area that offer condominium living have been doing quite well for themselves and, combined with a great deal of interest from foreign investors, sales have been improving since the worst of the real estate market crash years ago.
Among the people who are investing in Miami condos as well as other properties, buying is currently a bigger trend than developing. With interest rates at historic lows and financing coming at some of the cheapest imaginable rates, investors are looking toward purchasing new properties and expanding their portfolios rather than developing properties that they already own.
There have been other trends observed by experts in the Miami real estate market, as well. For instance, living in downtown Miami is becoming a popular option in that particular market has seen a 30 percent decrease in available properties over the last year. While many of the people visiting Miami are clearly checking into a hotel room, many of the people who decide that they want to make Miami their permanent home are looking to move toward the center of the city for convenience and good deals on property.
In the most frequented areas by tourists, hotels will likely see business continued to be brisk and to see the available revenues for many of their rooms increase even more. At the same time, more people seem to be taking an interest in coming to South Florida for a vacation or to invest in property, and that should benefit the entire real estate market, including people who operate hotels and those who have condominiums to sell.
The luxury end of the real estate market in Miami continues to be brisk and to show market improvement over the last few years. Builder confidence has also risen over the last year, potentially leading to new construction becoming common in the area.