Our South Florida readers have probably seen previous posts here that noted the exploding number of condo towers that are popping up everywhere. A recent report, however, noted a firm estimate on the actual number: over 80 condo towers east of I-95 throughout Miami-Dade County, Palm Beach County and Broward County.
If 80 condo towers sounds like a lot to our readers, they probably aren’t alone. Most people have the residential real estate “bubble burst” fresh in their minds still, and the prospect of so many condo towers popping up will probably conjure up some bad memories. In previous posts here we have noted the growing fears that this type of residential development could begin to saturate the market with inventory – thus beginning a new slide in residential property values.
However, there are also hopes that the construction cycle will be different this time around. Now more than ever there appears to be strong appeal among international buyers in the tri-county South Florida real estate market, and who can blame them? Warm temperatures year-round and an apparently booming economic situation are strong draws. Miami-Dade County is seeing the most new construction, according to the recent report.
The condo towers currently under construction, and those that are in the development stages waiting for approval, will provide tens of thousands of new units to the local real estate market. For both buyers and sellers, that could change the bargaining dynamics in real estate agreements. As always, there are many different factors that the parties on both sides of any potential deal will need to consider.
Source: Miami Herald, “80 new condo towers under construction in South Florida east of I-95,” Peter Zalewski, Dec. 22, 2014