Tag Archives: Miami Beach

Miami Condo Market: Surviving Despite Market Decline

Considered as one of the top tourist attractions in the known world, Miami is flocked to the brim with tourists every year. From the sandy beaches to exotic nightlife, Miami is indeed a perfect place to relax and enjoy a time-off from the busy routine of work.

Many real estate firms converted a vast number of residential areas, like apartments, to high-rise condos to accommodate visitors flocking into the city. They believe that this is a lucrative business, and will never run out – but they were wrong.

Miami Real Estate Market On Steep Decline

Since 2006, Miami, as well as the rest of the states, experienced a decline in the real estate market. The number of foreclosures increases every year, which adds to the number of unsold real estate units.

There are many factors that contribute to the decline of real estate market in Florida. The interest rates of many financial lenders increased over the years, making it almost impossible for local residents to get a loan to finance residential real estate acquisitions. Also, the devaluation of the U.S. currency made real estate market an almost impossible lucrative venture.

Too Many Condos

One of the blunders which contributed to the Miami real estate decline is the number of condo units. The construction of many high-rise condos can be seen all over the city, and when finished, adds to the increasing number of unsold homes.

This kind of investment is taking a hard toll on many real estate companies as they try different methods to attract clients to acquire these units; being hard-pressed as to lower their prices to increase the chance of making the deal sweeter to the locals and foreigners alike, is starting to take its tolls on their finances.

Miami Condo Price Decreases

Since the U.S. Dollar value declined, many foreigners are now eyeing the prices of Miami condos with interests. Canadians and Europeans are now flocking into the city to buy these condos units at lower the cost.
The locals are starting to notice the decrease of prices in many real estate properties around the city. Though the affordability is still slim considering the high interest rates of different mortgage types, the glimmer of hope in condo acquisition is on the rise for these individuals.

Also, the increase in demand of additional workforce for the city contributes to the rising need of residential units. Currently, the median prices for condo in Miami are, more or less, $200,000. Condominiums are now being considered as cheaper compared to single-family residential properties; thus, the popularity for Miami condo increases every year.

The real challenge, however, to survive the real estate market despite the economic crisis is how each of these agencies will create an affordable market for real estate properties to the rising demand of the public.

Vanessa Arellano Doctor

Real Estate PR

The State Of Miami Beach’s Inland Apartments

The view around Miami-Dade County today is not the same as just a couple of years ago, as the rapid pace of development has totally reconfigured how the area looks and feels.

There isn’t much left of the old areas, as more luxury apartments rise within walking distance of the ocean, as well as into the interior parts. The city of Miami Beach has also seen its fair share of numerous man-made and natural changes over the years, including a booming regional economy, increased tourism, and a thriving real estate market.

More Investors Are Pouring Their Money In Apartments

Until a few years ago, individual European and Latin-American investors put their money into Miami rentals, however most institutional buyers did not. According to a longtime property analyst, “most institutions stopped at the Broward County line,, because they thought Miami-Dade was a foreign country”.

This mindset however, began to change when AIMCO purchased the 533-unit Morton Towers on Miami Beach, and is now called the Grand Flamingo, for $58 million in 1997. Another investor, Charles E. Smith, bought the 1,339-unit Mirador, another South Beach apartment building, in September 1999 and, more recently, the Harbour House in the beachfront area of Bal Harbour.

Miami-Dade Is Seeing A Luxury Apartment Building Boom

Although the luxury rental apartment sector is booming in Miami-Dade, however it is much harder for average folks these days, to find a place to live. According to local brokers, as of May 2001, there was only a 2% vacancy rate for all kinds of apartments, as compared to May 2000, when the vacancy rate was 2.4%.

The area’s tight middle-income housing market can be attributed to the fact that some affordable mid-level housing units are being taken out of the market by condominium converters.

How Apartment Housing Is Faring In Central Miami Beach

Collins Park is one of Miami Beach’s districts, and is considered to be the most “up and coming” neighborhood here, according to local news sources. Newspapers here cite the completion of the new Sanctuary Spa Resort, an updated public library, and several open projects as evidence for its claim.

The district is currently undergoing gentrification, as many of the old middle-income apartments, which were largely built in the 1980s, are now being purchased by major real estate developers, and are being be converted into condominiums. This trend is commonplace in many of the city’s neighborhoods, as districts that were once inhabited by lower-income families and individuals, are being purchased by larger developers and are being converted into middle-income, and upscale housing developments.

What’s Being Done To Fix The Area’s Apartment Shortage

Commercial real estate analysts agree that there is an apartment shortage in Miami-Dade, and they estimate that the county will need an estimated 3,000 to 4, 000 units per year However, there is little chance those units will be built, based on the last four years.

From 1997 through 2000, an average of 1,449 units were built per year in Miami-Dade. The average market-rate cost for a one-bedroom unit in Miami-Dade rents for $790 per month, and these are expected to rise on average by about 3% in 2001, the housing analysts further note.

Vanessa Arellano Doctor
http://miamirealestateinc.org