At least one developer believes that Hurricane Irma will have little impact on Florida real estate prices.
In the wake of the storm damage assessments have begun and things don’t look as bad as many had expected, Jeff Soffer told CNBC.
“I don’t think real estate prices are going to get affected. Ultimately people want to be in Florida.”
Soffer is the CEO of the luxury real estate development and property management firm Turnberry Associates. He said hurricanes come with the territory when living in Florida.
“It’s just a way of life. It doesn’t happen that often, and the reality is that Florida’s very well prepared for this. I don’t think real estate prices are going to get affected. Ultimately people want to be in Florida.”
According to research by Zillow, properties near the coast – which are most likely to get pelted by wind, rain and storm surges that come with large hurricanes – exhibit a consistent pattern. They command a significant premium over properties located farther inland and they consistently retain that premium even after the danger posed by these storms has become obvious.
When Andrew devastated Florida 25 years ago, the storm left behind massive destruction that resulted in changes in building codes. As a result, buildings that were constructed in the years since withstood Irma’s winds.
Turnberry’s portfolio includes the iconic Fontainebleau resort in Miama. Soffer told CNBC most of the damage in the area has been landscape debris and downed power lines.
The hotel was expected to reopen Tuesday.
As Florida picks up the pieces in the wake of Irma, one thing is certain. The luster of life in the Sunshine State isn’t likely to be tarnished by a storm.
As agents who work in the market know, the draw of living near the see is too strong to dampen interest in real estate.
