What are the distinctive features of this Miami condo boom?
First, Miami’s real estate market development is impressive. Indeed, on 4 square miles in Downtown Miami, there are about 69 towers under construction for a total of 18,400 residential condominium units! Bear in mind though that all of the projects might not be built. Since the city was first constructed one hundred years ago, it has undergone a property boom-and-busts cycle. Miami’s previous building frenzy saw 20,000 units rise. The current boom not only adds more condos but also retail and entertainment space. Among the large scale projects being built, Brickell City Centre will comprise a hotel, a conference center, a shopping mall and a condo tower. A few blocks away is even-larger hybrid complex Miami World Center. This is no wonder that the whole world is now setting eyes on Miami.
Then, the Miami real estate is mainly funded by foreign investors. It is representative of the transformation of Miami from one of America’s poorest areas into an international capital. Even though Los Angeles and New York, among other big cities, experience a similar boom, Miami truly differs as the focus is mainly on luxury condominiums that foreign buyers want to purchase. With its nightlife and art fairs, Miami is the next it-city. It has truly become a great global capital that attracts la crème de la crème of the ultra-wealthy.
If you enjoy geopolitics, you might understand better the waves of investment converging to Miami. Indeed, the economic turmoil happening in Latin America explains Latin American buyers’ inclination to use their savings and purchase here in Miami. Moreover, Miami is such an international city that people from all over the world manage to find their own community in Magic City, so that they feel at home. Indeed, Miami is all about wonderful weather, splendid beaches, perfect taxes and refined restaurants. The diversity of the people tops it all to make Miami yet more attractive.
As a consequence, these booms and busts have greatly impacted Miami over the years. Downtown Miami has literally transformed thanks to a residential construction spree directed to young professionals working in the area. It goes along with the youth movement that Miami is taken up in, with the creative class moving Downtown.
Yet, despite the high-end development, Miami is still one of the poorest cities in the United States. It makes the gap between rich and poor even wider. There is a concern as to whether Overtown will be compressed because of the emerging private market that these very valuable properties are progressively creating. This gentrification process may lead 50% of the community’s population to leave and go outside of the city. It is yet another indication on the fact that high-rise condos keep on reshaping Miami.