Condo hotels are one of the top selling segments of the real estate market. New properties are taking shape in every nook and corner of the country and so as new players everyday. Things are moving so quickly in reference to the condo hotels that it is recommended to have a clearer grasp on the concept and trend of it.
Powered by the increasing potential of condo hotels, the demand of it is growing by leaps and bounds. The potential buyer of the condo hotels are of the age group of 35-50. Foreign buyers of the Europe and South America, in general, take interest in the properties of the US.
The interest of the buyers on this segment has been triggered primarily by its potential for appreciation with the side benefits of hassle-free ownership and its use as a vacation home nevertheless to say their goal of investment diversification.
Most of the properties are high-rise buildings with on average 200-500 units and are sold out in pre-construction. South Florida of the US continues to be the area in-demand and shown steady appreciation. The trend has also infected into the west to Las Vegas where the condo hotels of all price ranges are being built.
Condo hotel conversion is seen to be a new trend. Developers are either upgrading the existing structures or knocking them down and starting over again. Some properties are beginning to crop up inland. These may not have oceanfront views; however, they're within a few short blocks of a beach being priced more economically.
There is a strong demand for properties with a franchise name, one that brings a reputation for four- to five-star quality or a name that is already well established. People recognize the name and feel confident that this property will be of the same five-star caliber.
As evident from the growing demand, the prices of the properties are sky-rocketing. Developers often raise their prices 3-5 times from when they start selling until they sell out. Discount is the last word in the dictionary of developers at the beginning of the selling process as the demand is so high. Generally speaking, with regard to price, the best time to get in is usually early on in the first pre-construction offering.
Most condo hotels being built are of four- to five-star quality whose financing is no more a problem for the developers. The resale market of the condo hotels is still relatively small, and it's hard to find a bargain.
Phil LaBoon is a well known author who writes articles on finance and investment, real estate, etc. for www.investrealestate101.com
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