Alex Akel, President, Akel Homes

Alex Akel, president of Akel Homes, spoke with Invest: about the challenges and opportunities facing home builders in South Florida. “Palm Beach has always been a magnet for human and financial capital. Palm Beach County is not just a retirement destination anymore, it is a magnet for young families to grow their career and seek new opportunities.

Reflecting on the past year, what have been some of the main highlights for Akel Homes?
We have a number of active developments in Palm Beach County, all of which are on the residential side of the business. We are currently finishing out a community called Solana Bay located within the development of Avenir in Palm Beach Gardens. With around 118 single-family homes ,we have limited opportunities left to build. Prices range from $900,000 to almost $2 million. We have two active developments in Lake Worth, one of which is set to begin pre-leasing in September 2025, called Mosaic Palms. It is a 187-unit apartment community for rent. We broke ground on land development in June 2024 and vertical construction began in November 2024. We are anticipating finishing construction in December 2025.
Our next community in the pipeline is a 69-unit rental townhouse development in Palm Beach County. The project will help meet demand, as townhome rentals are limited in the county.

What is your overview of the residential real estate market in Palm Beach at the moment? What key trends or dynamics are you seeing?
It is an interesting time in the market. While Palm Beach County has historically attracted retirees, COVID brought a wave of families to the area. That surge has since leveled off, but new home prices remain elevated despite higher interest rates.The rate environment has locked many owners into their current homes, which both benefits and limits new-home sales: it pushes buyers toward new construction, but also keeps some local move-up buyers “trapped” in place.
Land opportunities are difficult to come by in Palm Beach County, making it challenging for developers and builders to bring new products to market. The expectation is that as rates come down, the market will open up for both resale and new-home construction. It remains unclear what the immediate to one-year impact of lower rates will be on prices, but we will need to see substantial cuts before there’s a real shift.
Akel Homes is well positioned because we play on both sides of the market, with rental and for-sale products. The rental market has been in a downturn, largely driven by interest rates, and many assets purchased in 2021-22 are trading at or below their original purchase price. We’ve been able to capitalize on this environment by securing land at an attractive cost basis and by self-performing our vertical construction. We’ve timed the market well over the last year, as there hasn’t been much rental construction in Palm Beach County. That’s given us favorable construction pricing, and we expect to open into a market with limited competition.
On the for-sale side of the business, demand remains strong. Buyers are looking for high-quality, amenity-rich communities that deliver both lifestyle and value. We’ve focused on designing homes with thoughtful floorplans, premium finishes, and resort-style amenities that meet the expectations of today’s buyer. Even in a challenging rate environment, families are willing to pay for quality and for communities that foster connection and long-term value.
As a spectator, I am fascinated by the development that is occurring in West Palm Beach.

What factors make Palm Beach County an attractive market for real estate investment compared to other regions in South Florida?
Palm Beach County has transformed dramatically. The demographics are completely different compared to 2020. We are well-positioned because of the proximity to major financial hubs in Miami and Fort Lauderdale, and now West Palm Beach is having its moment. We also get the benefit of the tax environment in Florida. Palm Beach has always been a magnet for human and financial capital, and right now it is exploding because more younger people see the county as a destination to grow their career and seek new opportunities.

With the rise in luxury development in South Florida, how do you see the demand for high-end residences evolving?
My world is master-planned for-sale single family communities and today, any new construction in Palm Beach County starts at $800,000. Given the lack of developable land opportunities, it is quite difficult to bring traditional master-plan communities to the market because they require much more land. In order to meet the demand for new housing, Palm Beach County will need to build up. That is why you are seeing more high-rise developments, especially by the waterfront in West Palm Beach and Riviera Beach.

How have changes to the EB-5 foreign investor program impacted Akel Homes developments, if at all?
Our communities have not really attracted many EB-5 foreign investors. While we do see some foreign buyers, recent laws restricting international investors have further limited that activity. In general, we maintain “no-investor” policies because we want residents who actually live in our communities – it creates a stronger, more cohesive neighborhood.

What are the primary challenges the real estate market is facing in Palm Beach at the moment, and how is Akel Homes working to address them?
The first challenges are national and global. The real estate industry is navigating economic uncertainty, especially around tariffs and construction costs. Every day brings new headlines, which makes projecting expenses difficult – particularly when we self-perform.

Locally, the biggest challenge in Palm Beach County is finding developable land. Good opportunities are scarce, and that puts pressure on developers to be creative. Redevelopment will increasingly drive growth across the county as large tracts of new land become harder to find. We are also active further north in the Treasure Coast where we have substantial land positions and we are seeing cross-over demand between the Treasure Coast and Palm Beach County.