Investing in Miami New Condo Developments

Five things to know about Buying Pre-Construction in South Florida

Do New Condo Developments Always Appreciate?

In the early stages of the new Miami Condo development, the developer tends to offer very attractive prices which will start increasing once the project  has broken ground. As the project progresses, prices tend to increase. While many investors witness an increase in the value of their newly acquired condos once they enter the resale market, not all condos experience appreciation. We have seen it all too often that units are sold for top dollar in the pre-construction phase only to see them struggle in the resale market.

There are several reasons why a condo does not perform well in the resale market:

• The product was not finished as promised and when introduced to the resale market, buyers lost interest at that price level
• The condo was too generic and once released into the resale market it failed to distinguish itself from other condos therefore losing in value
• It was sold for a price that was too high for the features offered (often the case when additional value is derived from luxury brands)
• It was bought at the end of the lifestyle at the peak of the market and sold when the market was going down
• The buyer went into the sales center without buyer representation and was not shown the rights comps therefore overpaying

Well Finished New Condo Developments in Miami

Buying a new construction condo is always a risk as you deal with an intangible asset and a list of promises. Although you never know if the developer will deliver what he promised, you can look at track records. What has this group done in the past and have they delivered quality products in a timely matter? As a realtor with 15+ years of experience and having sold 100’s of pre-construction units I can tell you which developers are known for great quality condos and which are not.

The Top 10 Miami New Condo Developments

Non-Generic Miami New Condo Developments

This is what happened in the Brickell Condo market during the 2012-2015 boom. Many developers offered “luxury condos” that were sold for top dollar and then performed badly in the resale market. The floor plans were often not flowing well, something that is often hard to see for pre-construction buyers. Think of dead space sold as a den, no storage room, or small social areas. Buildings that offer many smaller 1 or 2-bedroom units tend to attract investors and investors are speculators. If the market shows signs of a recession these are the first units to go up for sale. A building that offers 30% or more of its units for sale (which was the case in Brickell with many buildings) tends to depreciate.

Please ask us for the condos that offer value, good floor plans and that offer features that are hard to replicate and are in demand with buyers. I have studied this market for years and I understand buyer psychology. As someone who has accurately forecasted the market for years, I feel confident in guiding you to the right floor plan in the right condo.

Paying the Right Price

Buyers that walk into a sales center are often swept off their feet with gimmicks. The opulence of the sales center together with sexy renderings and a three page fact sheet of features and amenities might make you blind for the prices. In addition if you have not seen all the other new construction condos in Miami you might not have the full scope of what the market has to offer and how prices compare.

Therefore you need to be guided bye someone who knows all condos, can compare them and knows where the prices should be based on experience and market knowledge. We have an esteemed super broker status, giving us direct lines of communication with developers and their operations directors. This special position enables us to negotiate directly at the origin, ultimately working to your advantage. While some think that avoiding an agent and going straight to the sales office saves money, our direct access to key decision-makers ensures the same cost savings. This not only offers financial benefits but also adds an extra layer of protection to your investment.

Average Prices for South Florida New Construction Condos

Buying at the Right Time

The earlier in the project you buy the new construction condo, the better the prices. Often, we are the first point of contact for developers announcing new projects. Timing is crucial, and the most favorable deals are usually secured within the first 10 contracts. Being at the forefront of the market, we gain early insights into upcoming products, including exclusive pricing details. This positions us to introduce you to these offerings well before their official launch, often making us aware of new projects ahead of time.

In addition, we look at the market cycle. Is it the right moment to buy? Is there still room for this product to appreciate? I’m in the fortunate position of being successful enough to tell people when to stay away from a certain condo or when not to buy, herewith risking a potential commission check. I believe in long-term relationships and prefer to tell my buyers when I think a condo is not likely to appreciate anymore and it’s better to wait or invest in other products.

Market Awareness and Analysis

Currently, there are more than 40 new construction projects in South Florida. We’ve thoroughly analyzed and researched not just a select few, but all of them. In 2024, additional projects will launch sales, and we can keep you informed about them. Trying to navigate this information on your own can be overwhelming, so allow us to simplify these condos for you. We meticulously analyze each detail, from line to line and floor plan to floor plan, and have access to all the available units for sale. Our expertise can assist you in making an informed decision and selecting the best unit for your needs.

Schedule a Call with David (In Person or via Zoom) to discuss Miami New Condo Developments