2016 looks set to be a key year for Tampa property after a big increase in interest from both American and foreign buyers. Reasons behind Tampa’s rising popularity include more direct flights, better prices for property and the area’s high standard of living. This latest news article from BRIC Group explains why the spotlight is currently shining on property in Tampa.
Florida property has long been a favourite with international buyers. But the majority of foreign investors have in the past tended to opt for the south of Florida with property in Miami and Fort Lauderdale at the top of the must-buy list. Until last year.
In 2015, the focus shifted from the south to the southwest, specifically to the Tampa-St Petersburg-Clearwater metro area. Realtors in this part of Florida report a big rise in interest from foreign buyers and in Hillsborough County, property purchases by international investors went up between 14 and 20 per cent. In Tampa itself, the increase reached 6 per cent in the 12 months to June 2015.
Draw of Tampa Airport
Property agents in Tampa claim that one of the reasons behind the rise in international interest is due to the increase in the number of direct flights to Tampa International Airport. Last year, new routes to Frankfurt and Panama City were added to those already connecting this part of Florida with Zurich and London. German and Panamanian buyers were previously forced to go to Miami.
“Those flights, that is huge,” said Carlos Fuentes, a Tampa property agent quoted by Florida Realtors. “In December, Lufthansa added the direct flights from Frankfurt, a hub for Asians who want to come to the United States.”
Better property prices
Another motive for increased foreign interest in property in Tampa comes in the area’s prices, considerably lower than southern Florida. For example, in December the median price for a single family home in Tampa reached US$180,000. A similar property in Miami cost an average of US$297,000. The same applies to townhouses and condos – a condo property in Tampa averaged US$127,000 whereas in Miami, an apartment cost in the region of US$160,000.
The move to Tampa can also be seen in the rise in sales and prices. In the year to December 2015, prices for Tampa single family homes rose by 11.1 per cent and sales by 3.3 per cent. The number of condo-townhouse properties sold increased by a much higher 8.6 per cent and prices by 11.4 per cent.
National interest too
But it isn’t just foreigners who are placing Tampa property on their investment radar; Americans are also drawn to this thriving metro area on the Gulf of Mexico. They too find the prices attractive but the employment market has big appeal as well.
In the year to November 2015, the Tampa-St Petersburg-Clearwater metro area created 40,500 jobs, the highest over-the-year figure for any metro area in Florida. In terms of year-on-year figures, Tampa also performed exceptionally in employment. The 3.3 per cent rate of job creation ranked as the second highest in the state.
“The combination of more direct flights, accessible property prices and lots of jobs certainly add to Tampa’s appeal,” commented Dies Poppeliers, Managing Director at BRIC Group. “We expect to see plenty of interest in our tenant-ready buy-to-let properties in Tampa over the next year.”
BRIC Group, an investment company specialising in global real estate opportunities, offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group is also developing The Coral resort, in Northeast Brazil, a luxury beachfront resort with land and villa investment opportunities. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.
Source: Florida Realtors