83 New Developments Announced in South FloridaNovember 8, 2012
During the International Real Estate Congress Conference, held this week in Miami, it was announced that developers are expecting 83 new condo towers to be erected in the next few years. The South Florida market with be getting an estimated 12,410 condos. In 2008, there were 108,000 townhouses and condominiums on the market and now there are less than 3,000 of those left to be sold out of 49,000 built since 2003. One of the new developments will be in illustrious Bal Harbour, which has witnessed a veritable boom in building this year. Purchased by an Argentine LLC, Consultatio Bal Harbour LLC, the high rise will cost $220 million and will sit on 5.5 acres on the Atlantic Ocean and is estimated to add 250 luxury condominiums. Units will be priced over $2 million and these properties are certain to wow even the most discriminating buyers. So, who exactly will be buying all this property in South Florida, and why are lenders stepping up to the plate?
Canadians are the largest international buyers in South Florida, followed by the Latin Americans, and most recently, the Chinese. The current supply of condominiums in South Florida, especially for luxury condominiums is very tight, due to the international investors taking advantage of the deals that were on the market previously, and given the continued demand, lenders are changing their policies. Banks are funding developers in anticipation of the continued increase in median rent prices across South Florida. One example of these increases is in Downtown Miami where rents have increased by as much as by $2.02 per square foot. Investors and everyday folks are taking notice of this and luxury buyers are often purchasing pre-construction properties for high end rentals. Banks are requiring large cash down payments for these properties, aimed at the international buyer. Some new developments that are generating buzz are Icon Bay, Mansions at Acqualina, Grove at Grand Bay, and 400 Sunny Isles. We anticipate that these properties will not last long on the market. For pre-construction pricing, contact either Peter Barkin or Mark Gilman today!