In the downtown area of Miami, there are fourteen towers that can house more than four thousand residential units as per a report given by Crane Spotters concerning the condominium development in Miami. This progress is being closely tracked in Miami and the Southern Florida region. There is a proposal for another forty four towers that can hold thirteen thousand five hundred housing units. The Miami real estate market has taken a sharp surge upwards and it has happened in a very short period of time.
The development has taken at such a rapid rate that there is a hug shortage of available land for development. In fact, there is not much space left on the waterfront, at all. Any hole you could have spotted on the map few months ago has been filled up. This is all due to the flow of money that is coming from abroad. Developers have learnt some tricks of the trade from the Latin American style of real estate financing models. These methods require the buyers to advance at least half of the amount involved before closing the deal. The developers are relying heavily on such deposits and less on debts to fund their constructions.
Mega luxury condominium developers are mostly crowding out the least lucrative kinds of development and that includes apartment rentals, affordable housing units and office space. The Miami Downtown Development Authority has also reported that the vacancy rate in the financial district of Brickell has come down by about ten per cent since the last three years.
Miami’s luxury real estate is almost being thought of as a strong form of parallel currency in the United States of America. Since the global crunch started six years ago, luxury real estate has taken the shape of a powerful currency alternative which provides foreign investors with a cachet and as a tangible asset within the real estate market.
Foreign Investor Confidence
Despite the volatility of the financial markets worldwide and several political fallouts, the confidence of the foreign investors has not been shaken. In fact, foreign buyers are seeking Miami real estate as a safe haven to build up their assets and protect them in the future. A continuous wave of foreign buyers from South America, Asia, Canada and Europe has entered the housing market in Miami and it has also set up record land prices.
The Demand is being driven by Supply
The luxury real estate market in Miami is being defined by the actual supply of available properties. While the demand is remaining constantly on an elevated level, inventory has suddenly become a crucial variable, especially at the top of the market in the luxury niche. The rising international demand for prime location properties is overtaking the supply, which is becoming limited. Hence, prime properties are witnessing record sales and are attracting many foreign buyers who are always on the lookout for luxury homes in Miami.
Luxury condominiums have become a new category in the real estate market of Miami. It is not only the list prices that are dictating the record sales but the prime locations, quality of the amenities and the expansive views. Above all, the sheer potential of these luxury homes in Miami is playing a vital part in attracting foreign buyers.