Long-Term Condo Boom in Miami
In 2011, Miami was hosting its very first pre-construction launch of a new condo tower. The Launch was in a quaint furniture store in the Village of Merrick Park in the Greater Downtown Miami area. It was the first of what would soon become a long-term trend that is still going strong five years later. Since that first condo pre-construction launch, more than 23,200 condo units are being built in the Greater Downtown Miami market alone. That means that there are more than 80 new condo towers are being placed right now.
Miami is Leading the Way for South Florida
Miami is one of the biggest cities in the country and is a hub for business, culture, and people. As such, it’s boom makes sense. But it has started a larger trend within the wider area of South Florida as a whole. In the South Florida area, they had constructed close to 417 new condo towers, giving the area more than 50,800 condo units for sale. While the Greater Downtown Miami area is still the most active in the South Florida region, it set a larger trend for the area. People are flocking to the area in greater numbers, and as such, the condo market is on one of it’s biggest booms ever.
— The Capitalist (@Capitalist_Site) May 6, 2016
The South Florida Market
The South Florida condo market is matching up with larger trends tried by other real estate markets such as New York City, Chicago, and Los Angeles. Most of the condos constructed in South Florida are still in planning stage of construction. 61% of the new condo towers fall into this category. Only 29% of the condos are already under construction. This trend shows that people are flocking to the major cities, and more generally, the South Florida region, faster than the condos can be built.
Signs that Mark the Future of the South Florida Market Boom
As the South Florida market continues to shine, it is important to see in what directions it will be heading in the future. Potential investors, clients, and residents are eager to see what the future of the region will hold for them.
One of the biggest influxes of wealth and money come from foreign investments. As South Florida has been a global investment safe-haven destination for some time now, it has become dependent upon foreign exchange rates. The dependence proves to be a risk for them in the future if foreign investments and exchange rates stop working in their favor.
South Florida is also becoming famous for its diversity of builders. In this area, people in construction from around the world are showing they can experiment with new techniques, looks, and designs, before taking them around the world with them. South Florida is poised to become a creative dreamland for builders around the world.
However, with the reintroduction of Cuba into the regionally economy, South Florida may begin to see adverse effects. Cuba was not allowed for many years, and its reintroduction may start to take away from the wealth and funds that have been channeled into South Florida this whole time. This diversion may wreck the continued growth of South Florida’s real estate, or it may have no effect at all. Only time will be able to show us for sure.
The number of people that worried about rising sea levels increased dramatically after the growing number of conversations on climate change. Many coastal real estate markets are beginning to worry about the constant threat. As more scientists discuss the possibility of rising sea-levels flooding the South Florida market, more people may be afraid to invest in the area.
Top Locations in South Florida
While there is overall within the South Florida real estate region, some markets are shining brighter than others. The major five markets within South Florida are:
- Greater Downtown Miami
- Hollywood-Hallandale Beach
- Fort Lauderdale
- Sunny Isles Beach
Greater Downtown Miami is far and away the leader in the South Florida condo market. Of the new condos built in the region, 45.7% are going into this area. In the recent past, a total of 23,186 units in 80 different towers were introduced.
Hollywood-Hallandale Beach comes in second with 9.5% of the new condo units. The area is receiving 4,808 units in 26 towers.
Third is Fort Lauderdale or Downtown-Beach. It is currently constructing 51 new condo towers with 3,352 units, giving it 6.6% of the total new condo unit share.
Sunny Isles comes it just short of Fort Lauderdale, with 3,138 new units built within 21 new towers. These new constructions mean that of the new condos, they will be receive 6.2% of the condos.
Finally, last but not least, there are the new condos built in Aventura. They are going to build 21 different condo towers, with a total of 3,017 units, giving them 5.9% of the total new condo growth.