Las Vegas Condos Market---Braving the Recession
With thousands of foreclosed and empty units, Las Vegas condos market like her neighboring markets is also mired in recession. But unlike others, she is giving a good fight and that is in her own unique way. And it is this ability to resist the bad times that has made the Sin City almost recession proof.
Even a couple of years ago, Las Vegas condos market were counted among the world's hottest markets. The buyers were ready to pay any price for their dream real estate as they were sure that their properties would never depreciate in value. In a state where nearly 70% lands are the property of Federal government, developable lands are rare to find and that has made the casino-city grow upward. With increasing number of high rise, Las Vegas condos and luxury hotels coming to define Las Vegas skyline, the Nevada desert gave way to a real estate boom and it is the Las Vegas condos that remained the focal point throughout the boom. The sub prime crisis caused a slow down, but failed to bring it to a halt. Las Vegas is unique in itself, and so is its real estate market. So when the condos market elsewhere in the country have surrendered to the might of recession, Las Vegas condos market has refused to come to terms. Las Vegas is seemingly in a struggle against bad economy.
One of the most important factors that helped Las Vegas condos market withhold the blow of recession was its world famous tourism. While there was a sharp fall in the number of American tourists visiting Las Vegas, there was an increase in the number of European tourists. The decline in the value of dollars against Euro and Pounds encouraged many European vacationers to try their luck in the gambling city. As compared to other gaming cities along Californian Coasts such as Reno, Las Vegas did not experience a dramatic fall in its tourist influx. Thus while the hospitality industry still lagged way behind their boom period occupancy rate, the prestigious condos and condo hotels did not find it difficult to find buyers for their units. The completion of $8.6 billion MGM Mirage, City Center is the proof of this trend. This high value condominium is developed as a 4,000-plus room gaming resort, which would also include 2,400 Las Vegas condos and luxury non-gaming hotels.
However, MGM's game plan involved a slash in the price. City Center was reported to have reduced prices by 20 to 30 percent to attract more buyers. Thus you can now buy luxury units in this condominium for under $1,000 per square foot. This makes it a cool bargain, as only a couple of years ago same units sold for $1,000 to $2,000 per square foot. In the property’s Veer towers, Las Vegas condos are priced less than the average cost to build the units. No wonder, over 55% of the condo units at City Center have been sold out and the MGM Mirage is confident that more investors will find the property suitable for making real estate investment in the current market situation.
With these initiatives on the part of the developers and condo owners, Las Vegas condos are slowly coming back to the pre-boom average prices of $205,000. Thus a new buyer’s market is in the making in Las Vegas. The buyers that are snapping up Las Vegas condos believe that their purchases make excellent long term investment. When the economy picks up once again, the condo owners are sure to make a good profit out of their investment. After all, premium real estates in the world’s one of the hottest destinations never cease to have value.
