FLORIDA GUIDE

One of America’s best all-round growth

markets and investment potential.
 FLORIDA
GUIDE
CONTENTS
INTRODUCTION 3

FLORIDA IN DETAIL 4

ECONOMY 5

TOURISM 8

PROPERTY 9

FOCUS ON KEY AREAS 11

ORLANDO 13

TAMPA 15

JACKSONVILLE 17

NEW PORT RICHEY 19

INVEST IN FLORIDA 21
THE SUNSHINE S TAT E ’ S A L L - E N C O M PA S S I N G
The state of Florida has been a market to watch with the
sunshine state one of America’s leading economies and property
markets. Its future looks set to continue on its excellent growth
path with high aspirations sets by the Florida Strategic Plan for
Economic Development, whose vision is:
“Florida will have the nation’s top performing economy and be
recognised as the world’s best place to live, learn, play, work
and do business.”
Florida’s recovery began in 2010 and economic growth has
been consistent year on year. Businesses are expanding and
relocating to Florida, job creation is increasing employment with
unemployment falling. GDP growth and job creation in 2016
both outpaced the national averages and Florida registered
strong sales in retail and property. Record figures were seen in
many industries.
3
SUNNY OUTLOOK
The Florida & Metro Forecast 2017-2046 (published June
2017) predicts that Florida’s economy will expand by 3.7%
in 2018 and job creation by 3.3%. Both rates are higher than
those forecast for the US as a whole.
This guide has been written to provide a comprehensive look
at Florida’s economy, tourism and property markets. It also
focuses on key niche markets that are showing important
potential as investment destinations.
F L O R I DA I N D E TA I L
 ECONOMY
GDP GROWTH
Florida’s economy has shown consistently strong growth over
recent years and achieved a GDP increase of 3.2 per cent in 2016
with 3 per cent predicted in 2017. In 2017, total GDP is expected
to reach US$990 billion with over US$1 trillion predicted for 2018.
This makes Florida the fourth largest economy nationally and the
18th largest in the world.
In the Florida & Metro Forecast 2017-2046, the Institute for
Economic Competiveness forecast GDP growth of 3 per cent, on
a par with their prediction for the US as a whole. In 2016, Chief
Executive ranked Florida as the second best state to do business.
POPULATION EMPLOYMENT
Florida currently has a population of around 20.2 million, 4 In 2016, Florida created over 237,000 new jobs and analysts expect
per cent higher than in 2012. As one of the country’s favoured 3.3 per cent job growth rates for both 2017 and 2018, 0.8 per
destinations for relocation and retirement, this figure is expected cent higher than the national level. Unemployment was 4.3 per
to reach 21.15 million by 2020. Florida is the third largest US state cent in May 2017. Job creation has been particularly strong in the
having over taken New York in 2015. By 2020, Florida’s population Orlando, Jacksonville and Tampa Bay metro areas.
aged 25 to 44 will increase by 10.8 per cent with the over 65
population set to grow by 32.3 per cent.
In terms of preferred relocation destinations within the US, Florida
currently ranks as the third most popular overall. For the 18 to
67 age group specifically, it stands in second position.
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KEY INDUSTRIES
Florida’s strategic position in the US makes it an impor tant impor t-
expor t hub with 40 per cent of all US expor ts to Latin and South
America passing through the state. As one of the world’s leading
tourist destinations, Florida is heavily reliable on the tourism industry,
the most impor tant pillar of the state industry. Other key sectors
include proper ty and construction, currently the top job creating
sector in the state; the aerospace sector, which provides over 21,850
in the state including nearly 2,000 at the NASA Kennedy Space Center
at Cape Canaveral; agriculture, par ticularly citrus fruits – Florida
produces around 40 per cent of the world’s orange juice; health care
and technology, an increasingly impor tant sector owing to the growth
of the state’s retirement population; and the financial and insurance
sector with over 32,400 companies operating in the state, the third
largest cluster in the US.

CURRENCY & BANKING

The currency in Florida is the US dollar (US$). After the turmoil of
the subprime crisis, US banks have largely regained stability and the
vast majority boast healthy balance sheets. A Q1 2017 report issued
by Bauer Financial, a financial ratings agency based in Florida, found
just 5 per cent of the 144 Florida banks were rated as ‘weak’, down
from 8 per cent a year earlier.

6
MORTGAGE MARKET Although cash payments are becoming less common, the
figures are indicative of the difficulties in obtaining a mor tgage.
While 79% of buyers in Florida in 2016 financed their purchase
In addition, interest rates have climbed steadily in 2017. The
with a mor tgage, many are unable to meet current stringent
30-year rate stood at 3.96% in July (up from 3.41% in July
loan requirements and/or save enough for a down payment.
2016) and the 15-year rate at 3.22% (up from 2.74% a year
In Q1 2017, 30.8% of single-family home purchases were paid
earlier). The forecast is for rates to continue to rise, a factor
in cash. For condo-townhouse proper ties, the percentage
that will add to demand for rental proper ties.
was even higher at 59.6%.

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 TOURISM
With a pleasant year-round climate, over 800 miles of beaches
and 1,250 golf courses, Florida ranks among the world’s favourite
tourist destinations.Visitor figures in 2016 reached a record 112.8
million, well ahead of the state’s target of 110 million. Visitors
increased by 5.9 per cent and 2016 was the sixth year in a row
that Florida broke its own record. In the decade to 2016, the
number of visitors to Florida has gone up by 32.9%.
2017 got off to an excellent start and Q1 saw an increase
of 2.5% in visitor figures. The over 31.08 million tourists who
visited Florida included a 3.2% rise in domestic tourism to total
over 27 million. Just over 4 million foreigners holidayed in the
state in Q1 2017.
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Tourism forms a huge part of the state economy, employing
around 1.4 million people and is the fourth largest industry in
the state. Travel and tourism spending in 2016 reached US$109
billion. Tourist-related employed rose by 16.7 per cent.
P R O P E RT Y
MARKET
Since 2011, Florida’s property market has been on the road to recovery
and signs of improvement can be seen in the all-round increases in sales,
median prices and decrease in foreclosures between 2014 and 2017.

Figures for May 2017 clearly show that the Florida property market has
settled into a pace of stable growth. Prices rose for the 66th consecutive
month. The median price for a single family home went up by 7.7% to
US$239,000 and for condo-townhouse properties by 8.1% to reach
US$178,000.

Florida dominated the Forbes 2017 Best Buy Cities taking 4 out of the
top 10 best metropolitan areas for property investment with Jacksonville
in second place and Orlando in third.

Foreigners continue to prefer Florida over other US states and in 2016,

22% of foreigners bought here. They bought 47,000 properties with
a total value of US$19.4 billion that make up 19% of all the state’s
residential market.

09
HOME OWNERSHIP
Homeownership in Florida is still at a low level as credit conditions
continue to be stringent resulting in a slow resale market. However,
sales are increasing year on year. According to Florida Realtors,
sales for all property types in May 2017 were 7.8% higher than a
year earlier. Single family home sales went up by 7.6% and condo
sales by 8% in the year.
LONG-TERM RENTAL MARKET
The difficulties associated with obtaining mortgage loans and
high levels of job creation have put pressure on the Florida rental
market. Vacancy levels are low and rental rates rising. In May 2017,
rental rates in Florida rose by 3.1% in the year, although rises were
considerably higher in some metro areas such as Orlando (up 5%)
and Tampa (up 4.1%). Occupancy levels remain high and in May
stood at 96.2% in Orlando and 94.9% in Jacksonville and Tampa.
10
SHORT-TERM RENTAL MARKET
The huge influx of tourists creates the corresponding demand
for holiday lets, particularly in the most popular holiday areas.
Collection of the bed tax charged on holiday rentals rose in all
counties in the year to Q1 2017, reflecting higher levels of holiday
rentals. The season for holiday lets in Florida is one of the longest
in the world and owners with properties in prime locations can
expect occupancy rates of 40 weeks a year.
FOCUS ON KEY AREAS
 3

2
FLORIDA

1- ORLANDO

2- TAMPA

3- JACKSONVILLE

4- NEW PORT RICHEY

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12
ORLANDO

ECONOMY
Orlando is the capital of Orange County, home to around 1.2 million people,
the fifth most populous county in Florida and its geographical centre. The
population is projected to grow 10.7 per cent by 2020, somewhat ahead of
the state average of 7 per cent. Unlike other parts of Florida, the population
in Orange County is predominantly young with over 80 per cent under 55.
Orlando itself has a population of around 240,000.

Orange County is one of Florida’s most affluent counties with a per capita
income of US$37,000. Unemployment stood at 3.6% in May 2017 and the
job creation rate of 4.6 per cent in the year to January 2017 in the Orlando
metro area was the highest in the country.

TOURISM
Orlando lays claim to the most visited city in the US receiving around 66
million tourists in 2016, nearly 60 per cent of all visitors to Florida. It is home
to some of the world’s most famous attractions including seven of the ten
most visited theme parks in the US. While tourism is the main pillar of the
local economy, Orlando is also a major convention centre and home to many
large businesses such as IBM, Tupperware, AAA and the VA Medical Center.

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PROPERTY
In common with the rest of Florida, the proper ty market in Orlando
has recovered dramatically since late 2010. In the year to May 2017,
median sales prices for single family homes rose by 7% and those for
condo/townhouse proper ties went up by 12.1%. Foreclosures have
fallen drastically in Orange County, which no longer ranks among the
five highest rates in the state.

In a GoBankingRates survey on the best places to buy investment

proper ty in the US, Orlando ranked in first place out of 61 MSAs in the
country. The survey described the proper ty market in the area as “hot”.
Orlando ranked third in the US in the Forbes Best Buy Cities: Where to
Invest in Housing 2017 for proper ty investment.

The strong population and employment growth plus the high incidence
of foreclosures in Orlando have put considerable pressure on the long-
term rental market. Average monthly rentals for apar tments rose by 5%
in the year to May 2017, one of the highest rates in the country. Research
carried out by CBRE points to a 22 per cent increase in long-term
rental prices by 2019. The number of renters has risen from 260,000 to
320,000 since 2007, according to a repor t issued by Apar tmentList.

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TA M P A

ECONOMY
Situated on the Gulf of Mexico in Hillsborough County (southwest Florida),
the metropolitan area of Tampa has a population of around 4.35 million.
The population is expected to grow by 5 per cent over the next four years
to reach a total of 4.56 million. The majority of Tampa residents are aged
under 55, although a fifth of the population is made up by retirees – in 2016,
WalletHub rated Tampa as the second best retirement destination in the US
with the city ranking high in affordability, activity choice and quality of life.

The area is experiencing strong growth and steady job creation.

Unemployment has fallen from its 2010 peak of 11.5 per cent to 4% in
May 2017. Tampa has the second-highest job creation rate in Florida (3% in
2016) and leads the state in opportunities for higher-wage jobs.

Transportation forms a main employment sector – Tampa International

Airport is the third busiest in North America. The airport entered the second
phase of a US$2.3 billion renovation programme in mid-2017. Tampa Port is
a main import-export hub and major cruise destination with an economic
footprint of US$15 billion annually and employing over 100,000.The MacDill
Air Force Base is located in the area and several large companies such as
Tech Data, Publix and Raymond James Financial have their headquarters in
Tampa.

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TOURISM
Tourism forms an important part of the economy. The county
receives around 22 million visitors a year and tourism is worth
around US$5.6 billion to the economy. Revenue from tourist tax
in Q1 2017 broke the record and exceeded US$10 million for
the first time ever.
PROPERTY
Tampa property market has recovered significantly since 2010,
both in price and number of sales. In May 2017, median prices
for single family homes and condominiums rose by 11.2% and
15.4% respectively. Tampa ranked in seventh position in the
Forbes Best Buy Cities: Where to Invest in Housing 2017 and
third for fastest house-price growth in an online portal report
published in March 2017.
Hillsborough County has one of the highest incidences of
foreclosures in Florida, although since 2013 there has been a
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marked increase in the number of sales of foreclosure properties.
In May 2017, 1 in every 885 properties was a foreclosure,
considerably below the state average of 1 per 1,129.
Tampa rates as one of the best areas in the US for investment in
rental property. In a GoBankingRates survey on the best places
to buy investment property in the US, Tampa ranked in second
place out of 61 MSAs in the country. In the year to May 2017,
rental rates rose by 4.1%, one of the highest rates in the state. The
average monthly rent for a 2-bedroom property was US$1,200.
JACKSONVILLE

ECONOMY
Situated in Northeast Florida and occupying the largest area of any city in the
US, Jacksonville is a thriving business centre, considerably more dependent
on industry and services than most other cities in Florida. The metropolitan
area (known as JAX MSA) is home to over 1.4 million people, a figure
expected to grow by 9 per cent between now and 2019. The population
is predominantly young, reflecting the dynamic education and employment
opportunities in the city.

Jacksonville ranks among the top five US cities to find a job and has the
second fastest-growing employment market for the IT sector in the country.
Some 17,900 jobs were created in the year to January 2017, one of the
highest growth rates in the state and the country. Unemployment in May
2017 stood at 3.8%, below both the national and Florida rates

Along with the services and IT sectors, JAXPORT, currently under major
expansion, is another source of employment along with the construction
industry involved in several other large projects in the city including The
Landing, the riverfront redevelopment.

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TOURISM
While not in the same league as Orlando or Miami when it
comes to tourism,Jacksonville boasts plenty of tourist attractions
including extensive waterways (many are protected parkland)
and over 22 miles of sandy beaches. Over 6.2 million visitors
stayed overnight in Jacksonville during 2016, an increase of 4.3
per cent on 2015. Hotel occupancy reached 71.4 per cent.
The figures for 2016 confirm the region’s upward trend in
tourism.
PROPERTY
The Jacksonville property market is growing steadily. In May
2017, the median price for property was US$195,250, an annual
increase of 7.45% Jacksonville ranked second in the Forbes
Best Buy Cities: Where to Invest in Housing 2017. The report
predicted that property prices in the metro area would rise
30% by 2020 and estimated that values were undervalued by
around 8 per cent at the beginning of 2017.
The city has a buoyant rental market and rental rates are
more stable than other parts of Florida. In July 2017, rental
rates rose by 3.8% in the year and averaged US$1,040 a
month. This rise brought monthly rents to the ninth highest
in Florida. In a GoBankingRates survey on the best places to
buy investment property in the US, Jacksonville ranked in
13th place out of 61 MSAs in the country.
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NEW PORT
RICHEY
ECONOMY
New Port Richey is the largest town in Pasco County, one of the smallest in
terms of population in Florida. However, the county’s location on the Gulf
of Mexico, excellent communications with Tampa and Orlando, favourable
employment climate and wide range of leisure activities makes it one of
West Florida’s fastest-expanding areas for economic development. The
county’s population of around 465,275 is expected to grow by nearly 12
per cent over the next four years as thousands of new residents flock to the
area. The average age in the county (43.6 in 2014) is declining reflecting the
change in demographics towards a majority of families with young children.

Small businesses form the backbone of business in this par t of Florida with
great diversity in the range of industries. Local authorities are facilitating
business setups in the county, a measure that has already seen a marked
increase in employment oppor tunities. Unemployment in Pasco County in
May 2017 stood at 4.2%, on a par with the state average but 0.5% below
the national. Job oppor tunities in the area are growing including the Wesley
Chapel district where huge investment in the Tampa Premium Outlets mall
has added 800 new jobs and Florida Hospital has seen a US$78 million
expansion. Employment is expected to grow by nearly 40 per cent over the
next decade.

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TOURISM
New Port Richey, famous for its early 1900’s architecture,
good choice of shops and restaurants, and stunning beaches
and parks, has a much smaller tourism industry than other
parts of Orlando, but visitor numbers and revenue has risen
considerably. Hotel occupancy rose by 8.9% between 2013
and 2016. Figures for 2017 will be boosted by the Wesley
Chapel 5-ice rink centre, the largest ice skating centre in the
southeast of the US.
PROPERTY
There’s considerable pressure on the New Port Richey
property market, reflecting the desirability of the area
among relocating families. The job opportunities in the area,
its proximity to Tampa Bay and lower property prices have
led to a shortage of homes in the county. Residential building
permits have increased over the last 2-3 years, but the rate
has failed to keep up with demand.
The average sales price in Pasco County for single family
homes was US$187,000 in April 2017, up 10% in the year.
In terms of foreclosures, New Port Richey has a lower rate
than the Florida average and the number in May 2017 was 1
property per 910.
Home ownership in New Port Richey is low (just under 43
per cent) and this in combination with the shortage of new
construction means rental properties are in high demand.
Rental prices in Pasco County rose by 3.2% in the year to
June 2017.
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INVEST IN
FLORIDA
If you would like to take advantage of the investment
potential in Florida, we offer two investment options:
FLORIDA TURNKEY INVESTMENT
BRIC Group offers investors fully renovated properties in key strategic
locations with tenants in place paying rent. This is an entirely hands-off
investment with property management specialists in place to look after
all your property and tenant care.
Investment starts from US$102,000 many with a 2-year rental
guarantee in place. Annual rental yields can be up to as much as 9%
with investments offering 2-years proper ty management fees paid.
Investors have 100% ownership with freehold title deeds and an
investment earning you monthly income from day one.
FLORIDA LAND & NEW BUILD INVESTMENT
This opportunity offers investors the option to purchase prime location, coastal Floridian
land plots at a significant discount to original market values. Land plots all have freehold
title, are sold through reputable title and escrow companies and are situated in the sought
after area of Rotonda Lakes.
Plot prices star t from just US$26,500 and we offer a finance options of just US$15,500
deposit plus US$1,000 per month for 12 months.
To maximise this investment, we recommend building a single-family home on your plot,
proper ties that are in high demand, to either sell off-plan, sell on completion or keep to
rent. We offer a competitive package to have a house built within 25 weeks that includes
all planning permission applications and approvals, site preparations and build costs.
21
 www.bric-investment.com
For more information about Florida and investment opportunities:
info@bric-investment.com

USA BRAZIL SPAIN HUNGARY DUBAI

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Last update: August 2017

Disclaimer : The information contained herein is solely for informational purposes intended to provide a general guide and does not constitute an offer by BRIC Group to sell, rent or lease real estate. Every effor t has been made to ensure current and accurate information is presented. All information provided is believed to be correct at the time of
publishing and is given in good faith, although may be subject to change and/or error. BRIC Group disclaims any warranties or representation concerning the accuracy, correctness or reliability of the information contained within this document and instructs you to independently verify the accuracy of the information provided. All intellectual proper ty
rights are retained by their owners.