The
reason for the growing trend couldn’t be simpler: many people cannot afford to
buy a home. Of course, there will always be that segment of the population who
will prefer to own Doral real estate, and still another who will simply favor
renting over purchasing.
In
the words of Mahesh Pattabhiraman, chief lending officer for Miami-based Apollo
Bank: “A lot of people with bad credit
won’t qualify to buy a home. And because of the crisis, some people are not
convinced it’s the right time to buy… Rentals will be in demand for a while.
The pendulum has swung.”
Rentals
have some distinct advantages over purchasing a home. These include but are not
limited to: a flexibility in lifestyle, freedom from property taxes and
condominium fees, and not having to pay a huge down payment, which can put a
damper on Doral real state dreams rather quickly.
This
rental trend is not limited to South Florida but it is thriving there with
quite a few rental apartment projects in the works in cities ranging from Plantation
and Davie to Doral and Coral Gables.
Developers of Doral real estate who specialize in luxury condominiums and industrial parks
are now shifting their focus to rental apartments in order to ride the
financial wave of the increasing demand for apartments and the serendipitous
availability of financing. Since the course of the condo-conversion mania of
the last decade, very few professionally managed apartment buildings remain.
One
of these rare apartment rental projects is One Broadway, at 1451 South Miami
Ave. in the Brickell area, which was built in Miami during
the last boom. This apartment complex consistently maintains an above 95%
occupancy rate, attracting mostly young and well-to-do professionals.
There
has been a steady increase in the amount of rentals in downtown Miami as well.
According to Craig A. Werley, president and CEO of Focus Real Estate Advisors
LLC:
“Rents
jumped 11 percent in downtown Miami from the first quarter of 2011 to the first
quarter of 2012. Rents are rising in other neighborhoods as well, though
typically more modestly.”
The
desire for a steady stream of revenue has propelled Doral real estate
developers and investors in the direction of long-term ownership of apartment
buildings. The expectation is that much of the new rental construction will
eventually become converted condominiums.