In order to understand the social and cultural revolution that is living the extreme south of Florida, the real estate market can give us a good key, in our terms, the market in Miami is on fire, and this has very positive aspects, and others that baffle The future buyers, who intuit some things, but that ultimately are not explained Why are they so hard to get the apartment or house in the area they want, and the prices that “supposedly” are the industry average?
So it’s good to review these three aspects:
1. The current market has a deficit Miami inventory of at least 20% and demand will continue to grow.
2. The good news is that there are many developments in progress, and the best thing that happens is that they are not dependent on private banking at all, they are self–financing. This is a guarantee that they will be completed and that is very good for buyers.
3. The trick is that because they are self–investment are small developments, we no longer see the great white elephants of construction. Now the developers are more careful. And also more cautious, so they use their advantages, is the case of Miami, where developers make use of “Friends and Family.” It means that the developer has the option to offer the departments first, so if the condominium has 50 apartments, it is possible that when the sales start only 30 are available and this impacts the prices as well.
Miami no longer has areas so defined, sectors are expanding. Understanding this, then let ‘s see what happens in the most desirable locations:
Miami Beach: It is still a much – missed place to live, but the reality is that prices in the sector are the most expensive in the area, among other things by new developers. This is the case of the famous Argentinean Alan Faena, recognized for putting his signature and style, and who has achieved part of the new: People do not buy a property, now people buy a destination. Along with Faena House, with its $ 2,000 per square foot, the company is creating the Faena District, with galleries, museums and artists, with select shopping, hotel, gardens, marina, etc. Very close computes Ian Schrager’s Edition, where the price for Sqft goes back to 2,500 dollars, one tower will be hotel and the other one of condominiums, with only 25 units.
I can tell you that these prices have never been seen in Miami, for average properties of a condominium, we are not talking about penthouses.
That means no public in Miami Beach who wants that product. The area stopped being a seasonal destination, for travelers fleeing the cold of Canada and New York in winter. Now there are more visitors, of many more cultures, you will imagine that a Brazilian cares little about the temperature, Miami is still interesting all year for them. In any case, visitors of all nationalities who initially come for tourism, tend to think about investing and possibly staying.
Brickell: One of the things that has happened to the large area of Miami, and Brickell l exemplifies better, is the change in the age pattern of residents, Brickell is young, chic and professional essence. Those who are buying there are bank executives, insurance companies, law firms, among others, and those people do not want to get in the car to go to their office, they want to be able to walk. Who ever walked in Miami?
The transient Miami has also brought a new structure of the city, new businesses and services multiply for this user, is an area where the average price is between 500 and 600 dollars per square feet. Some of the changes that have taken place in Brickell or in its surroundings, the best of the world’s gastronomy, sports with the basket and the boiling Heats, and a fine and important cultural movement. But the spaces in Brickell are too small, the young couples that are growing up, or the singles that most often receive their visiting family, have chosen to join two or three apartments, the next wave of construction in the area will definitely bring changes In the spaces.
Midtown : As in life, in the real estate theme, pioneers often young people, not only because they take more risks but because they seek better prices, which already are very expensive or uninteresting areas, seeking new experience. The new experience in Miami are the cultural and cultures neighborhoods, where the bohemian life those attached to the pleasures of Miami are mixed, there is Midtown , Wynwood and Desing District. At first it was only the artists and their movement, these have already been displaced by the inhabitants, the developers have participated in all this movement, and have tried to make the area have that halo that makes it special. Its $ 400 per square feet makes the area even more interesting for strong investors who then rent these young people, who will soon look for better prices and new experiences. For now that seems to be a very good investment.