The Birmingham News

When it comes to beach property, “luxury” has taken on a whole new meaning. That's because a demanding public has come to expect a long list of amenities and upgrades in their vacation spots and in their investment properties.
That's just the American way, said Aaron Pugh, a Realtor with Ono Professional Partners in Gulf Shores. What were once luxury amenities are now standard. Gourmet kitchens, solid-surface countertops, fitness facilities – all these things add up to what Pugh calls an "overall appeal."
Along the Gulf Coast, the exponential growth of residential properties means more units – and more competition. According to Condo Owner Magazine, the Alabama Gulf Coast and Florida Panhandle have experienced a 595-percent growth over the past decade. That's more than double the increase in other coastal regions. With 10,000 units in Gulf Shores, Orange Beach and Fort Morgan, is there room for more? "There's always more room," Pugh said.
The need for new products has been in place for several years, and in a way, Hurricane Ivan helped spur the supply. Ivan, Pugh said, was "a necessary evil. It was like a cleansing process," ultimately replacing older and outdated buildings with larger complexes that provided more units and more of what buyers are demanding.
And where there are residences, commercial development follows. Once upon a time the Alabama Gulf Coast was more residential, less commercial. "That gap is slowly closing," Pugh said. "We've had a lot of commercial development come through here."
On the Fort Morgan peninsula, for example, the all-inclusive Beach Club Gulf Shores is a full-scale resort, with a spa, racquet club, fitness center, sauna and steam facilities, several restaurants on site and more. The Cottages at the beach Club are single-family residences that are mini-resorts in themselves, with outdoor kitchens, luxury baths and access to all spa services.
The Colonnades in Gulf Shores offers a library, movie theatre and a zero-depth pool. Coral Reef Resort, in preconstruction in Orange Beach, will feature an indoor heated pool, a theatre, a game-room, a 9,000-square-foot outdoor lagoon pool, an adult heated pool, a yoga room and an owners club, among other amenities.
Clearly, developers hear the demands, and they're answering with a diverse supply of housing opportunities with standard features. As Pugh put it, they have to. "Developers now have to consider there's more product than there was two or three years ago," Pugh said. "Buyers are demanding, and they have the right to be that way."
To reach prospective buyers, developers are not only staying competitive with the product and developing innovative properties, they're also creating financial incentives. For example, at Coral Reef in Orange Beach, where preconstruction is under way, the letter of credit has been reduced from 20 percent to 10 percent. "It's a numbers game," Pugh said, explaining that developers must have strong commitment from buyers before construction begins.
If you're looking for an investment property, Pugh said that now is the time to make the move. Whether the market favors the buyer or the seller changes continuously. With beefed up amenities and innovative blends of commercial and residential, the buyer may have leverage because inventory is strong and diverse. "Now is a good time for anyone looking for property," Pugh said. Visit his website here