Friday, October 20, 2017

This week's big news that Albuquerque is bidding to become the location of Amazon's second headquarters is an exciting new twist in the area's developing profile as a center of excellence in the tech field.

Of course we're some way off from knowing if the city will be successful, but what is already certain is that ABQ can make a very strong argument for itself.

In Los Lunas, of course, Facebook is currently building a data center on the Huning Ranch Business Park, the first phase of which is due to open next year. 

The arrival of such a high profile tech business as Facebook clearly helps to reinforce what we've been seeing for some time now, in terms of the area's fast growing reputation as an epicenter for tech start ups.

This summer saw the opening of the Innovate ABQ Lobo Rainforest building with space for business startups and there was recent news of a $1 million federal grant which will help pay for the construction of a new science lab.

There really is gathering momentum for the region to become a burgeoning "silicon valley".

So what does all this mean for homeowners?

Albuquerque has seen population growth of 45% since 2000, making it one of the fastest growing areas in the country. 

This has helped to change the demand for homes and, as we've been seeing in recent times, there's been steady growth in sold home prices.

The arrival of more and more tech related businesses will clearly help to assist this process even further and create an influx of high wage earning and well qualified buyers.

So it could fairly be suggested that this area has tremendous property investment potential. We enjoy relatively low property prices compared with many areas, making the region an even more attractive living location, so clearly there is much scope for equity growth as the area's tech profile becomes increasingly enhanced by each new major business arrival.

And although there's a long, long, long way to go before we can ever rival the real Silicon Valley, it's still interesting to observe what effect tech businesses have had on home prices there.

It was widely reported recently that a very modest four bedroom home in Sunnyvale, Calfornia, near the new Apple Campus, received 21 offers and sold for almost $800,000 over its already amazing asking price, selling for a whopping $2,470,000 (click here to find out more). It was one of 50 homes that sold in the area in August for at least $200,000 over listing price! 

Naturally, we're not suggesting for one second that the same level of price growth can ever occur here, but it does serve to illustrate how tech businesses can transform home values in an area.

These are exciting times to be investing in property in this area, so why not contact us today and discuss your best options.

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Juan RomeroJuan Romero
Investing in your Future!