Daily Business Review talked with Rishi Kapoor, Location Ventures CEO, about the market and the current economic environment, When it comes to the big “R” word, Kapoor commented that a recession could help costs balance out.

South Florida real estate leaders are seeing some advantages to the current recession, calling it a required reset to predict better pricing, level the supply chain, and filter the marketplace between the haves and the have-nots.

Rishi Kapoor, CEO of real estate development and investment firm Location Ventures in Coral Gables, believes the recession will bring prices to a more steady level and believes recessionary conditions will be rather mild.

“What we are seeing is that if there is any continuing ray of light that is most certainly South Florida currently, and that’s because there’s still a drive for relocations being a strong draw for people that haven’t moved over the last 18 to 24 months and are now making that consideration,” he said.

Kapoor says it’s a healthy pause for the market and will allow buyers to build confidence in the long-term outcome and also help map the development process from beginning to end, instead of the fluctuations seen in the last year.

“We’ve had an influx of worldwide capital from places that are relatively more expensive than South Florida, and now coming to Florida, they look at it as buying at a discount. There’s a huge disconnect between those buyers and many people that are considered locals where there have been massive pricing increases in certain markets over the past two years,” said Kapoor. “That, everybody knew was not sustainable, and ultimately that in some way or another was going to arrive with some type of cooling. It’ll give everybody a patching up, and enter into a buying point in the market that they might not have reached had the pricing trajectory continued.”

Read the full Daily Business Review article HERE