Miami, FL – Orlando and Miami have always been the two most popular Florida markets for Americans and global Real Estate buyers. Miami experienced a real estate boom in 2010, just after subprime crises, driven by Latin American investors. It was a time when luxury oceanfront condos were being offered at extremely attractive prices, and the American currency was not as valued against other currencies as it is today. Orlando started to attract Latin American’s attention in a second moment when Miami became expensive, and the buyer’s behavior changed. Now, the new buyer sees the property as a small business that needs to provide rental income. This new kind of investor started to be aggressively disputed by Orlando and Miami.
There is no doubt that the demand for luxury real estate in Miami continues. However, Orlando offers huge homes within gated communities near Disney at very attractive prices compared to Miami’s similar properties. And the best of all! Most of these properties in Orlando allow short-term rental, a practice that has always been extraordinarily regulated and restricted in Miami.
“It is an opportunity to have a vacation home in Orlando, one of the most sought after destinations in the world, and still make money by renting the property through the year, when not using it,” explains Heloisa Arazi, broker and owner of AMG Realty in Orlando.
The developers in Miami, when realizing the loss of customers to Orlando, began to design condos in a similar format. The first was YotelPad in Downtown, which sold-out in less than a year after groundbreaking. Soon after, Natiivo – Powered by Airbnb was launched, the first project in Miami where the online platform Airbnb partnered with a local developer.
The dispute between developers in both cities reached the point where new condos were guaranteeing a minimum return in the first two years, regardless of whether they rent or not.
“The guaranteed rental idea started in Orlando, with some condos offering a minimum of 6% per year return on rent, guaranteed, for the first two years”, explains Heloisa. “Now, in Miami, there is the new construction Legacy Hotel & Residences, in Downtown, with a similar proposal”, she explains.
Now, Miami and Orlando fight for the same market. A market that started seeing property as a small business that should generate income, besides providing leisure.