Florida is a state full of rich history, known for its beautiful holiday destinations, golf, and retirees. Several people choose to relocate to this beautiful southern state due to the inexpensive homes, diverse culture, and tropical lifestyle.
To keep up with the demand for new homes, Florida’s land development is expected to increase in the next several decades. In fact, the demand for building permits rose 30 percent higher in 2020 than the previous year.
However, growth has been extremely challenging due to Florida’s diverse landscape. As a result, several high-level development companies have begun investing in the growing market. So, what exactly is involved in land development in Florida?
Florida’s ‘Feel Good’ Factor Attracts Nation-Wide Buyers
With Florida’s warm weather and low taxes, the state has continuously lured buyers from high-tax regions such as California and New York. Earlier this month, the local Demographic Estimated Conference revealed a major shift in lifestyle & wellness preferences away from urban areas, explaining the continued 1.53% increase in migration since 2020.
Not to mention, entrepreneurs and businesses are visualizing South Florida as the ‘ultimate paradise,’ because of its tropical climate, multicultural communities, and the lack of state income tax. Even big companies are moving to the ‘Sunshine State,’ as Miami Mayor, Francis Suarez embraced the city as an emerging tech hub, skyrocketing the Florida real estate market.
Site Evacuation Means Steep Costs for Land Development
While developing new land creates several opportunities for businesses and residents alike, it’s an incredibly rigorous project that requires a lot of hard work. Many of the efforts go towards clearance to prepare the land for development, as well as paving roads and excavation.
Since Florida is full of sinkholes and unstable land patches, finding solid ground for building foundations is extremely daunting. It’s also a necessity: countless homes have been swallowed into sinkholes. Clearly, experts are required to prepare new land before it can be developed. Only expert development companies have the tools and resources to create new building sites safely and effectively.
Property Zoning Can Drive Up Expenses
Another challenge for developers is understanding Florida’s property zoning laws. Property zones determine what kind of property you can build in a particular area. Regulations like these delay the land development process, as companies need to put in countless hours and a lot of effort to ensure that the project is compliant.
Depending on the property zone, developers can build restaurants, condos, apartments, houses, shopping malls, or office buildings. Before starting a development project, the project manager must understand all of Florida’s property zoning laws, but results may not come cheap: Florida Realtors confirms that 24 percent of residential real estate costs are tied to regulatory requirements.
While land development can take years, the amount of new properties in Florida is expected to skyrocket. As a result, numerous real estate opportunities are opening up throughout the state, even as costs increase and the economy remains unstable. Now could be the perfect time to invest in Florida land development if you have the cash on hand.