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A new condominium building is shown under construction in the Brickell Ave. area in Miami

Research Finds a Healthy Miami Real Estate Market

Every year, the Miami Downtown Development Authority (DDA) prepares a special report, the Greater Downtown Miami Residential Real Estate Market Study, which details the state of the residential real estate market within the Miami DDA market area. With the level of new market activity and improvement, researchers from Integra Realty Resources were required to complete new research into the many projects currently underway.  Previously, “new” projects referred to the overhang inventory that remained from the housing crash (2003-2008) but were mostly absorbed in recent years. The report for this year is the first in many that considered truly new product on the market. The report details the status of new projects, and provides projection of future deliveries to provide insight into market timing and depth.

According to a recent Miami Today article, the report identified six sub-markets with nearly 14,500 residential units in the conceptual and planning phase across them all. The six sub-markets included Brickell, the Central Business District, Arts and Entertainment, Edgewater, Midtown and Wynwood. Of the six, Edgewater and Brickell are showing the greatest growth, with Brickell expected to grow 27% and Edgewater 67%. Projects like ION East Edgewater Condominium are being erected in these areas and are expected to average about $553 per square foot, which is actually on the reasonable side compared to other project prices in Miami. Experts agree that real estate is all about location, and Edgewater offers both waterfront and quick access to the highway, two very desirable characteristics.

Other points of interest covered in the report are emerging areas like Midtown, that are in the early stages of infill. Long-term growth is also expected in the Central Business District and Arts and Entertainment areas. The study also found that U.S. buyers are not responsible for the majority of sales, with a staggering 90% of new residential units being scooped up from abroad. This trend is fairly standard for the this market as Miami has always attracted investors from afar. But as financing options become more available with the comeback of the U.S. economy, the domestic market may get in the game.  Either way, we are happy to report that the Miami real estate market is alive and well and is expected to continue along this positive path.

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