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The momentum of Birmingham’s real estate deals in 2016 was quite impressive, considering where we have come from.
As 2017 gets into full swing, can the large multifamily projects, that added major value to our real estate scene, continue its momentum?
In the photo above, we see one of Birmingham’s more successful “mixed use” developments – located across from the ballpark.
Optimism is following projects like these as developers look toward the future, but as we all know, things can change on a whim.
Reported by the BBJ, Brent Godwin investigated what the experts say about this years growth in the Magic City.
“Heading into 2017, those insiders are approaching the new year with a cautious optimism – keeping a close eye on rising interest rate and debt markets, as well as the construction pipeline.”
– Godwin, BBJ
Here is the Experts Forecast on job growth and How it will Affect these Developments:
Employers expected to accelerate hiring
As the city grows in business, or development of business, more people will be working down town. This inherently raises the demand for residential real estate.
In many cases, it is more practical for developers to join residential & commercial together (making the multifamily developments).
New Job Growth
Mentioned in the article, the major development Topgolf is going to bring about 500 new jobs to the market, pulling more people, and especially consumers, downtown.
Clearly a great sign 😉
“680 apartments are scheduled to come online metrowide with 520 units located in the Central submarket, home of the University of Alabama at Birmingham.”
– Experts Report
On the Investment side of things:
These are going to rise in 2017, but with little affect on sales – mainly due to the momentum the developers continue carrying.
Investors will continue having their eye on Birmingham for quite some time, because of the potential our market has when withstanding new residential projects.
“…the past couple of years saw some major money flowing
including the sale of Lane Parke Apartments for $73.3 million and the sale of Venue at the Ballpark as part of a large national portfolio deal.”
To make it simple, our growth is in the right hands and headed in the right direction. The developers are optimistic, which will allow for greater risk taking in new projects, in turn accelerating future projects.
So, there’s the gist of Birmingham’s very near future with real estate. The true test will be when developers continue hitting the markets with new ideas & project generation.
After the year that 2016 was for Birmingham (through the Magic City and our Suburbs) developments, new projects, and revitalization in general, we ought to only expect the best.
I am hopeful the best is yet to come, so stay tuned!
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