Tourism Playing a Major Role on Real Estate in Orlando

When I’m driving on I-4 (Orlando’s answer to the German autobahn) during morning rush hour, two types of people are usually driving along with me. People who are running late to work and feel the need to go 90 mph as they zigzag across the interstate. And then we have tourists who have no idea on how to get to Disney or Universal. All while ignoring signs, and directions, and Siri telling them that they’re going the wrong way!

Tourism makes the city of Orlando go ‘round. But how exactly does it affect real estate in the Orlando, Central FL area? To be clear, for those of you outside of the Orlando market, the city is more than just theme parks and attractions. As I have tried to explain to my friends in the northeast, Orlando is about 20 towns that make up one large city or area. And brother, this town is a-boomin’.

Orlando’s prosperous tourism industry is hardly a surprise, but thanks to the recovering housing market, 2015 is already turning into a banner year economically. Experts believe that with a continued robust combination of tourism and real estate, Orlando and the state of Florida has now fully recovered from the great recession. As usual, you can also count on the steady influx of retirees and international condo buyers for some of the impressive growth. Snowbirds count as tourists, right?

On the tourism side of things, vacationers can take a lot of the credit for the overall economic reversal. Many economic experts believe this economic turnaround can be pinpointed to one specific event. When Universal Orlando Resort opened the Wizarding World of Harry Potter in 2010, families came in droves and what was an already a strong tourism market, then became a juggernaut. Universal’s attendance shot up 50 percent in the 12 months after the Wizarding World of Harry Potter opened. This led to Universal constructing new hotels to serve its Orlando parks. By 2016, Universal will have the 1,800-room Cabana Bay Resort and the 1,000-room Sapphire Falls Resort. International Drive, which runs past Orlando’s Orange County Convention Center, is becoming a tourism hub and a prime resort destination. The new 425-foot-high Orlando Eye Ferris Wheel is making I-Drive even more of a tourism magnet.

While Universal is getting bigger and better, Disney is…well, still Disney. The granddaddy of Orlando tourism is as steady as ever. I don’t think we will ever hear a kid tell their parents that they don’t want to go to Disney. So the mouse is safe for now, and mostly likely forever. Then we have the brand new Dr. Phillips Center in downtown Orlando. This is now the premier performing arts center in all of Central Florida. Concerts, musicals, stand-up comedy, etc.

So we continue to have people come here for fun, but are they staying? The answer more often than not, is yes. And we are talking more than just northerns who have been moving here for decades. More and more international tourists are becoming Floridians. South Americans, in particular Brazilians, are pouring huge amounts of money into Orlando/Central FL real estate. They’re searching for a safe haven for their wealth from any political and/or financial uncertainty back home. Europeans, especially French and English, are buying homes in the area too. Given the European Union’s sometimes shaky economic nature, wealthy Europeans are looking to reinvest their money in our local real estate. You will also notice in this growing area, that quite a few realtors and brokers aren’t naturalized Floridians. Hell, many of them aren’t even originally from the U.S. A large group of them are from Europe and South America. This makes it easier to cater to international clients who are looking to do the same thing. Go from Orlando tourist, to Orlando resident.