Gulf Shores Condo Market Report: March–May 2025

Key Market Trends

1. Strong Mid-Market Activity

The $350K–$500K range is the sweet spot. Condos in this segment make up the largest portion of sales and cater to both investors and second-home buyers. These include:

• Gulf-front condos with smaller square footage

• Lagoon-side or non-waterfront units with upgrades and strong rental history

Units at complexes like Las Palmas, The Cove, and Gulf Shores Plantation continue to see high turnover, especially if priced under $450K.

Personal Insight: “I’ve had several buyers this spring narrow in on condos in this bracket – it’s competitive, especially if the unit is updated and walkable to the beach.”

2. Entry-Level Inventory Moving with Strategic Pricing

Condo units under $300K (particularly 1BR and studio units) have moved quickly when priced right. Properties like Colony Club, Moonraker, and some Gulf Shores Plantation efficiencies provide accessible entry points for investors and seasonal owners. That said, properties in this range also tend to linger if they're outdated or in less desirable locations.

• Examples:

  • Colony Club (762 sq ft): Sold at $179,000–$199,000 | ~235–265 DOM

  • Moonraker (420 sq ft): Sold $199,000–$229,500 | $475–$546/sq ft

These sales show a high PPSF for smaller units, often driven by proximity to the beach or rental potential.

3. Luxury Condos (> $700K) Require Patience

High-end condo activity has slowed somewhat. Units over $700K often take 200+ days to sell unless they’re rare or newly renovated. A few have sold quickly – especially in highly desired locations – but most require sharp pricing and strong marketing.

• Example:

  • The Beach Club, 2231 sq ft: Sold at $1,175,000 | $526.67/sq ft | 59 DOM

  • Sanibel (2544 sq ft): Sold at $749,000 | $294.42/sq ft | 86 DOM

Popular Condo Complexes Noted in Sales

• Gulf Shores Plantation: Wide activity range. 1BR–2BR units sold between $285K–$350K with PPSF between $336–$570

• Colony Club: Numerous sales under $250K, ideal for long-term or seasonal rental investments

• Sunrise Village & Las Palmas: Gulf-front or near-gulf units, 1BR options with strong Airbnb appeal – often trading above $600/sq ft

• The Beach Club & The Indies: Larger, luxury units that appeal to buyers looking for full amenities, Gulf views, and long-term usage

  

Price per Square Foot (PPSF) by Location

Buyer Trends & Financing

• Cash Buyers: Dominant in the <$400K segment and in several $1M+ sales.

• Conventional Financing: Common in the $400K–$700K range.

• Buyers from: Alabama, Louisiana, Mississippi, Tennessee, Indiana, Missouri, and increasingly from Illinois and Michigan.

• Use Cases: 70%+ buyers are investors or purchasing for seasonal usage. Few full-time residents.

From a recent buyer:
"We’re from Nashville and have rented in Gulf Shores for years. Buying here just felt like the right move – we’ll use it part of the year and rent the rest."

Absorption Rate and Market Condition

• Total condo inventory: 549 units

• Average monthly sales rate: ~98 sold per month (based on 295 closed in 90 days)

• Estimated absorption rate: 5.6 months of supply

This puts Gulf Shores condos in a more balanced market than Orange Beach, which is sitting closer to 20+ months of inventory.

Takeaway: Well-priced Gulf Shores condos have an edge in velocity compared to Orange Beach, thanks to lower average prices and strong investor demand.

Predictions for Summer 2025

• Gulf Shores condos under $500K will continue to be top performers, especially those with solid rental history and easy beach access.

• Sellers should be aggressive on pricing and marketing, particularly in mid-range and luxury tiers.

• Interest rate sensitivity will impact financed buyers. Expect continued cash dominance in lower-end sales.

• Buyers should act before peak season rents drive competition back up.