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Who Is Buying Southwest Florida Real Estate? Institutional Investors

It’s no secret that Southwest Florida real estate has seen a bit of a renaissance over the past few years. More homes are being sold, prices are up, and fewer homeowners are underwater on their mortgages.

With the trend of more homes being sold comes the question: who, exactly, is doing the buying? What kind of buyers are active in the real estate scene in this part of the state?

A new report suggests that institutional investors now own more single-family homes in the area than they did previously. Institutional investors are typically companies that have extensive real estate portfolios. These include names like Blackstone Group and typically have deep pockets and an interest in grabbing property with high growth potential – something we are not short of ere.

What do these investors look for in a property? They essentially want property that has upside potential, or an opportunity for price appreciation beyond their investment. Some maintenance and renovations may be required, but the prospect of rising prices makes the investment worthwhile.

The presence of so many institutional investors is having a positive impact on local real estate. They help to increase prices, which may seem bad to homebuyers but is actually positive because higher prices enables more homeowners to sell. Without this capability, inventory wouldn’t be able to support demand, and homeowners would have fewer options.

Of course, there are still plenty of terrific properties for sale in Bonita Springs and elsewhere in the area – especially in The Colony at Pelican Landing, the area’s premier gated community. Contact me to learn more about this exciting opportunity!