Although the real estate prices have been rising steadily, they remain largely affordable compared to the others in western US metropolitan areas. The Metro Phoenix median home prices stood at $247,000 in 2017. During the recession, Metro Phoenix experienced some of the highest rates of repossessions. Today, the number has dropped to near normal levels. The rates of foreclosures in 2016 and 2017 fell by 22% and 28% respectively. The other interesting development concerns the entry of Millenials and the return of renters into the city’s real estate arena. The surge in Millenials is attributed to recent changes in the conventional loan limits, which was raised by 7% from $424,100 to $453,100. The adjustment has made it easier for new home buyers to go for pricey properties. Analysts expect the growth curve for residential and commercial real estate in Phoenix to continue growing into 2019 as builders buy more lots and expand inner-city infill projects.
Why the commercial real estate brokers love Phoenix Arizona
The stable Phoenix Arizona, commercial real estate market is witnessing many new constructions driven by macro demand factors like positive job outlook and population growth. The brokers working in the city have also been expanding their operations. The ranking of brokers is largely based on the number of agents working under the broker’s auspices. According to the Real Estate Show, brokers and buyers are drawn to the commercial real estate market in Phoenix due to the following prospects:
1. Capital of Arizona – as the state capital of Arizona, Phoenix enjoys a head start when it comes to resources and opportunities. With these benefits, many people, including professionals, home buyers and brokers have been relocating here in large numbers thus boosting the local real estate market.
2. Affordable real estate – the real estate market in Arizona is generally more affordable, and this is drawing many real estate brokers and buyers into the city and state in general. The elegant homes and commercial properties in Phoenix also feature bigger lots and ample parking space, which makes them highly ideal for growing families.
3. Outdoor paradise – the great year round weather permeated by clear, sunny skies make Phoenix an ideal place for families and homeowners to live and enjoy outdoors activities. The beautiful scenery is further enhanced by presence of lush desert valleys, lakes and crimson mountains.
4. High quality of life – Phoenix residents enjoy high quality of life due to high levels of income and reduced expenses. Real estate investors and brokers are enjoying handsome rewards because the number of people with disposable incomes is growing. Unlike other big cities in the US, people living in the city also enjoy hassle free living.
5. Promising office, industrial and retail markets
Commercial real estate ventures in Phoenix promise great returns to would be investors. According to AZ Big Media(2), the net absorption rate for offices surpassed 4.7 million in 2016 due to strong jobs growth. The sales and leasing activities for industrial properties has also been on an upwards curve. In 2016, the absorption rate hit 6.9 million square feet. The growth was attributed to positive signals in the housing market. Regarding the retail real estate market, the rent rates went up in 2016 while the net absorption rates fell. Real estate experts see this development as a sign of measured, but steady improvement.
About Luis Enrique Coll
Luis Enrique Coll is a real estate magnate, whose company, the Alco International Group has interest in the US, Venezuela and Panama. One of the latest developments to be undertaken by the company is the mixed use Adagio Fort Lauderdale in Florida. Every project that comes into stream is developed in line with the company’s mission of creating life changing spaces that generate value and enthusiasm. Besides the functional architecture, Alco International Groups has greatly transformed the communities it is operating by creating jobs. Under Luis Enrique Coll watch, the company is committed to bringing more commercial and residential properties to fill the demand gap.