There are always going to be ups and downs in any real estate market, but the markets in Florida have perhaps seen fluctuation like no other state in the last several years. As swaths of the state still feel the heavy effects of the housing bubble burst, the local area in South Florida has actually roared back in many ways. Yes, commercial real estate continues to lag behind residential real estate, but development has become a constant in South Florida over the last few years. However, that may be changing.
According to a recent report, yet another condo developer in South Florida is putting a halt to a development project. The two-tower complex, which is being constructed in the Miami Beach area, will be “paused,” according to the developer. There could be a variety of reasons, such as a slowdown in interest from foreign buyers as overseas economies lose steam, as well as the many other luxury condo projects that are being completed in South Florida.
There is now little doubt that residential property is facing a state of flux at present. But, the market for condos is quite different from the market for single-family homes. They are tied together, but potential buyers looking for one over the other will have different factors to consider.
This is only one example of a residential real estate project put on hold for the time being. Residential development in South Florida will continue, but the pace may change. Developers may not be in such a rush to start projects if they are unsure that the demand will exist when the project is finished.
Source: Miami Herald, “Another South Florida developer is putting a condo project on hold,” Nicholas Nehamas, Oct. 18, 2016