Saturday, July 7, 2007

INVESTORS, DEVELOPERS, Condo applications projected to cut in half over the next two years

I just came across an article by DCMUD, a publication by dcrealestate.com, that stated their prediction is that condo developments may be cut in half during the next two years when compared to the last two years. What does this mean? Well the simple answer is that an investment in SE DC will reap significantly more benefits than an investment in NW DC. Conisdering the article published last week, "Anacostia from Buy to Strong Buy" I cannot help but support the development of the cheapest land in Washington DC.

According to the estimates stated in the report, only 7600 condos will become available over the next 2 years, versus 13000 in the previous two. My impression of this downturn in release may come in part from a number of reasons:
-DCRA is horrible at aiding the process of condo conversion in Washington DC and based on my interation with many local developers, has scared many developers to maintain their development growth in areas outside the city.
-The real estate market has maintained steady but is unable to provide the growth rates once offered to any developer.

For those of you who are considering investing in our city or developing condos or townhomes, consider the SE Market. Even with sceduled production of unit releases, the earliest a development begun now would be sold is early spring next year. GET STARTED!

1 comment:

Stu said...

Just caught up on your blog. Good work.

Stu