By Jennifer LeClaire | Miami
Prices for resale condo units in Downtown Miami from the last boom have increased 75% over the past two years.
MIAMI—Would you believe Downtown Miami condo prices are nearing pre-recession levels? It’s true, according to a new study from the Miami Downtown Development Authority (DDA).
Prices for resale condo units in Downtown Miami from the last boom have increased 75% over the past two years, rising from an average of $230 per square foot to $400 per square foot. The DDA credits most of appreciation to value recovery stemming from market stabilization and the launch of new projects since 2011.
“Downtown Miami has long been viewed as a business hub, but we are quickly gaining a reputation for our lifestyle offerings, everything from the Adrienne Arsht Center for the Performing Arts and Pérez Art Museum Miami, to a growing number of high-end hotels and restaurants and the addition of luxury retail,” says Alyce Robertson, executive director of the Miami DDA. “Overseas buyers eyeing U.S. real estate are finding that downtown Miami has all the amenities of a major cosmopolitan city, along with competitive pricing and easy access to Latin America and Europe.”
All told, there were 8,700 condo units for sale or under development through June 2014. Most of this inventory is expected to deliver through 2017, which would indicate the market is in the early stages of mid-cycle development. Second quarter 2014 pre-construction pricing ranges from $550 to $675 per square foot for current unsold inventory.
“Strong buyer demand, appreciating prices, and growing appeal among renters continue to fuel the downtown Miami condo market,” says Anthony M. Graziano, senior managing director for Integra Realty Resources in Miami, whose firm conducted the study. “While we expect price increases to slow with time, downtown is well positioned to absorb the new condo inventory currently under development should present-day buyer trends hold.”