Tampa Condos on New Condos Online
Condo constructions is now a major episode in Florida's Tampa Bay area. Condos that offer a scenic view of the Gulf are the most enticing developments. Seeing an flood of people in masses, camping out in Tampa Bay on the lookout for obtaining new Tampa condos, one would acknowledge that the mass appeal of Tampa is really not about the Super Bowl. Investors of the Tampa Bay condo market usually purchase units at pre-construction prices and then sell them at profits of as much as 25%, even before these Tampa condos are even built.
Many individuals say that they would much rather invest in condos than place their money in higher risk involvements, such as the stock market. While a considerable number of investors have switched from stock to real estate as investments, because of projected higher returns as well as relatively greater investment security, other people buy condos as second homes with plans in the future to retire in beautiful, sunny Florida. Predictably, many small family owned hotels are being grabbed up by real estate developers to construct new condo communities.
Purchase popularity in the Tampa condos market is considered by many as being fueled by low interest rates. But the purchases, include buying with a mortgage, as well as with cash for condo units priced considerably higher $500,000. Prices, currently ranging from $300,000 to significantly over $1 million, continue to increase and will continue to do so as long as high demand flourishes. In 2005, condo conversions dominated Tampa condo market as 40 communities, equivalent to 14,231 apartment units, were bought by real estate developers for the purpose of conversion to condos. This figure reported for 2005 tops the corresponding figure for 2004 by as much as four-fold. Nonetheless, in 2006 Tampa was witnessing a decline interest from conversion buyers after high conversion activity over the past three years. The condo conversion frenzy significantly minimized the supply of apartments.
The law of supply and demand triggers into action as seen in the performance of the apartment market being experienced in 2006. Apartment deliveries, nevertheless, remain low, and this is because of a shortage of developable land along with increasing construction expenses. These two major factors are noteworthy in making it difficult for developers to embark on the Tampa condos market. As the delivery of new rental units in Tampa continues to decrease, strong rent growth at existing properties are expected to continue. The first quarter of 2006, Tampa's average rent reached $819, increasing an average 5.5% over the corresponding period in 2005. Certain properties and submarkets reported growth within the 10-20% percent increase range. Rents range from about $700 to over $1,000 per month, depending on the location. Established averages are now between $805 and $834. Occupancy rates reached 98.1% in the first quarter 2006.
This trailed the steady increase in occupancies since early 2003, and makes Tampa Bay one of Florida's most densely occupied rental markets. The Tampa rental market showed little signs of new development over the past year. With developable land becoming a scarce commodity, developers moved north along the I-75 corridor into Pasco County which added approximately 1,460 rental units, exhibiting one of the strongest increases in apartment supply throughout the state. Pasco's growth, though significant, was still not enough to offset the more than 14,000 units purchased for conversion in 2005.
