Real estate in South Florida is a hot commodity, in no small part evidenced by the ever-present residential development throughout the local area. Many of our readers have probably seen for themselves the rising condo towers that seemingly get nearer and nearer to completion every day. The sheer amount of condo units to be constructed, however, may shock anyone interested in residential property in South Florida.
According to a recent report, more than 25,000 condo units will be completed in South Florida – a number that includes several recently-announced construction projects. The Miami area in particular is seeing a huge number of units currently under construction, with hundreds more to come.
Anyone familiar with what the South Florida residential real estate market was like in the years prior to the bursting housing bubble in 2007 may see similarities in the current market. During the period of 2003 to 2007 thousands of condo units were completed in South Florida – now, thousands more are being constructed in addition to those previously constructed units. In fact, the recent report indicated that almost 1,800 condo units that are currently available were constructed during the 2003-2007 period. The new inventory will have a drastic impact on the number of available units – all expected to be in answer to increased demand.
It is a fair question to consider just how many condo units the local area can support. But, as of now, the real question – for builders and investors anyway – seems to be just how fast these projects can be proposed, approved and completed. If timing is one of the most important parts of jumping into the real estate market, it appears that investors and builders believe that the time is now.
Source: World Property Channel, “Booming South Florida Condo Market,” Francys Vallecillo, Jan. 13, 2014