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The Ugly Truth of the Miami Pre-Construction Condo Market!
A Must-Read Before Buying A Miami Pre-Construction Condo
Introduction to the Ugly Truth of the Miami Pre-Construction Condo Market!
Whenever a new Miami condo is announced terms such as “LUXURIOUS” or “THE BEST” are often casually thrown around. Buyers are therefore left in a state of uncertainty, wondering what to focus on when everything seems to be described as great. There are some questionable activities happening in the Miami pre-construction condo market. Realtors. who are supposed to have their buyer’s best interest in mind, are often not seeing the red flags. They might ignore them or quite simply lack the experience to even notice them.
We have been in the real estate business for so long and have sold hundreds of new construction condos in Miami. We openly speak about what we like and what we don’t like. Even in the condos we do like, there are floor pans that work and there are floor plans that don’t work. It is a line-by-line conversation because you buy one specific unit after all. We enjoy full super-broker status with most of the developments. As a result, we get first access to information and inventory on the newest Miami Pre-Construction Condos. We enjoy all the benefits of having this status but by using us you still get independent advice.
There is some ugly truth to the real estate business we want to make you aware of so you know you have someone who warns you and who has your back. Below we go into the more troublesome aspects of the market, which are very rarely talked about.
Construction Loans
Construction loans are a determining factor in whether a project will get off the ground. Some developers do not need financing while others will need 50% sold before they can secure a construction loan.
Having a construction loan is used as a selling point as it means there is money to start constructing Recently one of the developers mentioned they had a construction loan, but what they had was a refinancing of an acquisition loan. Refinancing a building that you already acquired is entirely different than getting a construction loan that you need to break ground. Once a developer has a construction loan you know they will soon be ready to break ground. If they are still working on getting this loan you simply do not know when they will break ground.
Be careful with overly confident or overly leveraged developers. Always look for those who have a proven track record of not just delivering quality but also delivering on time.
Florida is one of the ONLY places where a developer can use clients’ deposits to build. Arbor in the Grove is a prime example of this. The budget was not properly managed and the developer ran out of money. If that developer defaults they take your money with them in a worst-case scenario. Buying in Miami pre-construction condo can make you a lot of money, but you have to get it right
Groundbreaking
Developers always ask for a certain percentage to be paid at contract (10% to 20%) and then the next one at groundbreaking (Another 10% to 20%). What they now often do is announce a groundbreaking so they can ask for funds from the buyers. It can be some guys with a shovel who call the press after which some dirt is moved around. Make sure you know they projects that had an actual groundbreaking and those who just claimed they broke ground.
Because interest rates are so high right now, some developers are waiting to apply for a construction loan. They were hoping rates were coming down. Needless to say, this then delays the groundbreaking and the project’s timelines.
Vita Grove Isle is an example of a condo that had a real groundbreaking and a developer with a proven track record. For more information on the different projects and their developers please contact me.
Miami Pre-Construction Condo Market: Rental buildings.
I don’t like short-term leases or buildings that allow for Airbnb. These kinds of condos attract an investment-class buyer. Investors are speculators and when the condo does not perform well or the economy stagnates those are the first ones to sell. A condo that has a lot of units for sale will start devaluating. We have looked at this time and time again and we can tell that these always underperform. The same goes for hotel condos, essentially investing in a hotel room. These seldomly appreciate in value.
Many new construction condos are now coming into the market that allow for short-term leases or AIRBNBs. Most of these are coming to the Downtown/Midtown area. If you are aware of the volatility of these markets and decide to take the risk, you should go for it. If you want to know what does appreciate in value, please check this article or call me directly.
Floor Plans
Floor plans need to be accurate. There is a difference between the architectural floor plans and what the developer is pushing. The developer plans tend to be 10-15% larger than the architectural plans. It is the architectural plans that are recorded with the city. So if you are comparing an existing condo with a pre-construction condo you need to be careful to compare apples to apples. Existing condos use architectural plans while new condos often use the SF of the developer which therefore makes it seem the price per SF is lower.
In addition, you need to understand the floor plans. Floor plans are key. Even in quality condos, they can offer bad floor plans. How will the light come in? Will views remain unobstructed and how is the overall flow? With years of experience in selling luxury condos, I’ve gained insights into what really works and what doesn’t. You see, a floor plan on paper can be vastly different from the experience of walking through the actual unit. It’s astonishing how often I’ve witnessed buyers envisioning a certain layout when making their initial decision, only to realize upon moving in that it doesn’t quite suit their lifestyle.
Developers
Can they Deliver on Time?
If you look at the contract of a pre-construction condo in Miami, it allows for a significant amount of time to pass and could run as much as two years or more. Therefore it is essential to know the developer’s track record. It is not just important to check their quality but also whether they are known to respect timelines. In this cycle, for example, several buildings were supposed to take 3 years and they took 5 or even 6 to finish. The developers were not as experienced. Maybe they had the money but they hadn’t built before. Be really careful with this and ask us about the track record of a developer.
Do they Deliver What They Promised?
Many Miami developers have a pedigree (Eg Ugo Colombo) and they are known for delivering what they promised. Some developers have previously developed poorly and are now in round two. Often with the same promises or mentioning this is an improved project. I have heard the complaints and I have seen the resale prices dive and buyers should be aware of these developers. Please give me a call if you want to learn more.
Value Engineering
New condos are being built during a time with higher construction costs and higher interest rates. What was originally budgeted is no longer valid. These companies see their profits shrink. While many do not jeopardize the quality promised, others will try to save costs and cut on quality. This is called value engineering. When I represent a buyer, I add clauses to the contract that hold the developer accountable for delivering the level of product they said they were going to deliver.
Branded Condos
Brands are a great thing but not all brands have anything to do or add value to a Miami new construction condo. The quality of a car brand does not translate into the quality of a condo. Hospitality brands (Mandarin Oriental, Waldorf, St Regis, Cipriani) however do deliver because they correlate with the condo and have a track record in the industry. You should be careful with brands that do not have a track record with hospitality. It can go well, like is the case with Fendi, but there are several ones that did not perform well at all, sometimes seeing resale values drop by as much as 50%.
Conclusion of Ugly Truth of the Miami Pre-Construction Condo Market!
I have analyzed many new condos and will continue to do so. Some I love and I write about the reasons why I recommend them. Some I simply do not write about because I would not recommend them at all and do not want to be sued either. I’m unfiltered and unapologetic and I don’t say anything positive about a project if I don’t believe in it.
Therefore, if you have a particular condo you want to know more about and I do not have reviewed it, ask me why i have not. I report on the good, the bad, and the ugly, and I’ll help you make a better decision.
The Miami Condos We Do Recommend
HERE IS A LINK TO OUR TOP 10 NEW CONSTRUCTION CONDOS FOR SALE
| Ranking | Condo | Average Price per SF | Start Prices | Amount of Units | Year Finished | Independent Reviews | Video included in review |
| # 10 | CIPRIANI | $1,575 | $1,600,000 | 397 | 2027 | Click here |
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| # 9 | THE RESIDENCES AT 1428 BRICKELL | $1,680 | $2,500,000 | 189 | 2026 | Click here |
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| # 8 | St Regis Brickell | $2,200 | $4M | 149 | 2027 | Click here |
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| # 7 | RIVAGE | $3,580 | $7,000,000 | 60 | 2026 | Click here | |
| # 6 | Six Fisher Island | $4,000 | $15M | 50 | 2027 | Click here |
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| # 5 | VITA | $2,235 | $5,800,000 | 65 | 2024 | Click here |
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| # 4 | THE SHORE CLUB | $5,500 | $6,000,000 | 49 | 2026 | Click here | |
| # 3 | The Four Seasons Private Residences Coconut Grove | $3,500, $4,000 | $5.9M | 70 | 2027 | ||
| # 2 | THE PERIGON | $3,250 | $4,000,000 | 73 | 2026 | Click here |
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| #1 | The Residences at Mandarin Oriental | $2.600 | $5,000,000 | 220 | 2028 | Click here |
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Why work with me to buy a Miami pre-construction condo?
As an independent analyst, I have researched, studied, reported, and MOST importantly helped hundreds of buyers purchase new construction and resale condos for over 15 years. I am available to help, partner, and guide you to the best units without bias. I hold ‘super-broker’ status within the real estate community. In addition, I’m one of the few agents to be hired as a consultant on the development and marketing of four luxury projects over the past five years. I understand intimately the process, strategies, and legalities of new construction. Moreover, I have an insider’s understanding of how they work, advertise, market, legally operate, and sell – both the good and bad!
My experience and connections allow me to navigate my way to direct dialogue with the developer on your behalf. Advising, protecting, and executing luxury pre-construction condo deals at the best prices and with the best terms for my clients. My advanced software allows me to provide a clear understanding of new and resale value history to clients. My Top 10 New Construction Condo Rankings enable buyers to see how any new condo stacks up against the competition throughout Miami. Finally, my understanding of project specifics and statistics is unmatched. Want to know more? Call me for an impartial chat at (305) 985-0642 and let me openly and freely share my knowledge with you. You can also email me: [email protected] or register on the Calendly app for a Zoom call.
Schedule a Project Visit with David (In Person or Zoom)
Schedule a private presentation or a meeting to discuss the purchase of a Miami Pre-Construction Condo.
FAQ
These are the most commonly Miami Real Estate Related questions
What should relocation buyers know before buying real estate in Miami?
HOME BUYERS
Relocation buyers looking at homes in Miami should understand that choosing the right house is less about the property itself and more about location, schools, and long-term value. Many buyers make the mistake of focusing on price or finishes, while the real driver of value is the neighborhood and micro-location. Older homes often represent better value, but may also be part of a future redevelopment cycle. Newer homes command premiums, but don’t always sell faster if pricing is ahead of the market. Commute time, school access, and community dynamics are critical and often underestimated. The key is to evaluate homes not just as lifestyle purchases, but as long-term assets within a very localized market.
Sources:
https://luxlifemiamiblog.com/relocating-to-miami/
https://luxlifemiamiblog.com/relocating-to-miami-with-a-family/
CONDO BUYERS:
Relocation buyers should understand that Miami is a highly segmented, building-driven market, not a uniform one. Pricing can vary significantly between similar properties depending on building quality, layout, and financial health. Many buyers assume newer construction equals better investment, but that is often not the case. Factors like HOA fees, reserves, and rental policies can materially impact long-term value and liquidity. Negotiation opportunities often exist, especially in slower segments, but require precise market knowledge. The key is to evaluate micro-markets and individual buildings, not just neighborhoods or price per square foot.
Sources:
https://luxlifemiamiblog.com/miami-real-estate-market-report/
https://luxlifemiamiblog.com/new-construction-miami-guide/
What are the best areas for relocating families with children
For families relocating to Miami with young children, the most recommended neighborhoods are Coral Gables, Coconut Grove, and Pinecrest. Coral Gables offers the best balance of top schools, safety, and long-term value. Coconut Grove is ideal for younger families seeking walkability, greenery, and a lifestyle-driven environment. Pinecrest provides larger homes, excellent schools, and better value for space, making it ideal for growing families. The key driver across all three is access to strong schools and primary residential stability. Relocation decisions are less about new construction and more about long-term livability and resale strength.
Sources:
https://luxlifemiamiblog.com/best-neighborhoods-miami/
https://luxlifemiamiblog.com/what-are-the-best-family-neighborhoods-in-miami-in-2023/
Are new construction condos in Miami a good investment?
New construction condos in Miami can be a good investment—but only if you understand that not all buildings perform the same. According to the David Siddons Group, many buyers assume “new = better,” but in reality, performance depends on pricing, layout, building quality, and long-term demand. Some new developments set future price benchmarks and can drive long-term appreciation, especially in top-tier projects. However, many are priced aggressively at launch, and buyers relying on marketing instead of data often overpay.
The market is highly segmented, meaning two new buildings next to each other can perform very differently.
The best opportunities typically come from selecting the right building early or negotiating correctly in later phases.
In short: new construction is not automatically a good investment—it becomes one only with building-level analysis and disciplined entry pricing.
Sources:
https://luxlifemiamiblog.com/how-to-buy-a-luxury-condo-in-miami/
https://luxlifemiamiblog.com/category/independent-new-construction-condo-reviews/
https://luxlifemiamiblog.com/beyond-clickbait-real-insights-into-miamis-luxury-condo-market/
Why is buying a Miami condo riskier than buyers think?
Buying a Miami condo is often riskier than buyers expect because the true risks are at the building level—not visible in the listing price. Many buyers focus on finishes and views, while overlooking HOA reserves, insurance exposure, and potential special assessments. In reality, two identical units in different buildings can perform completely differently over time. Rising HOA fees and stricter regulations are also increasing the true cost of ownership, especially in older buildings. Liquidity can be affected by factors like financial health, rental policies, and ongoing repairs. The key risk is not the condo itself—but buying into the wrong building without proper due diligence.
Sources:
https://luxlifemiamiblog.com/how-to-buy-a-luxury-condo-in-miami/
https://luxlifemiamiblog.com/miami-condo-market-risks/
What are Miami's Safest Areas?
Which Miami Areas Still offer Great Value (Budget Friendly alternatives to Coral Gables and Pinecrest)
If you’re looking for better value than Coral Gables or Pinecrest, the answer (in true Siddons style) is not “go cheaper”—it’s go one layer outside the obvious markets.
The strongest value plays are:
- Schenley Park → closest substitute to Coral Gables at ~20% discount while maintaining similar character and location
- Biltmore Heights → almost identical feel to the Gables but ~25–30% cheaper on a $/SF basis
- Glenvar Heights → central location with larger lots and ~25% pricing advantage vs South Miami/Gables
- Baptist / Galloway (Kendall) → Pinecrest-style living (space, schools, land) at up to ~30% lower pricing
The pattern is consistent:
👉 Buyers are shifting west and slightly off-market to gain land, scale, and pricing efficiency. You don’t find value by going to a “cheaper neighborhood”—you find it by identifying adjacent micro-markets that offer the same lifestyle fundamentals without the brand premium.
Sources:
https://luxlifemiamiblog.com/best-value-neighborhoods-miami/
https://luxlifemiamiblog.com/category/miami-neighborhoods/
Is NOW a good time to buy in Miami?
Are Miami real estate prices going down in 2026?
No—but that’s the wrong way to look at it. Miami is not one market anymore, so prices are not moving in one direction. In 2026, the market is split into two: ultra-luxury, scarcity-driven areas (like waterfront and top-tier neighborhoods) are still holding or even rising, while mid-tier condos and oversupplied segments are flat or correcting. What we’re seeing is price divergence, not a crash—some properties are gaining value while others are quietly adjusting downward. Rising inventory and more selective buyers are putting pressure on pricing in certain segments, especially older condos or buildings with weaker fundamentals.
At the same time, global wealth and cash buyers continue to support pricing at the top end of the market. So the real answer: prices aren’t broadly dropping—they’re being repriced based on quality, location, and supply.
Should I buy a house or a condo when relocating to Miami?
The decision comes down to lifestyle first, investment second—and most relocation buyers get that backwards. If you want space, privacy, schools, and long-term family living, a single-family home in areas like Coral Gables or Coconut Grove is typically the stronger choice. If you prioritize walkability, low maintenance, and proximity to business districts, a condo in Brickell or waterfront markets makes more sense.
From an investment perspective, homes tend to be more stable, while condos are more building-dependent and cyclical. Most relocation clients underestimate how much building quality, HOA structure, and future costs impact condo performance. The right answer isn’t “house vs condo”—it’s which asset fits your lifestyle AND holds value within its micro-market.
How do I choose the right Miami neighborhood for my lifestyle?
Why are Miami condo prices so different between buildings?
Miami condo pricing varies widely because value is determined at the building level, not just by location. Two buildings next to each other can have major differences in financial health, reserves, HOA fees, and management quality. Buyers also pay premiums for better layouts, views, amenities, and newer construction—but not all “new” buildings perform equally. Factors like rental policies, upcoming assessments, and building reputation can significantly impact resale value. This is why price per square foot alone is misleading in Miami’s condo market. The real driver of value is how that specific building competes within its micro-market over time.
Sources:
https://luxlifemiamiblog.com/how-to-buy-a-luxury-condo-in-miami/
https://luxlifemiamiblog.com/category/independent-new-construction-condo-reviews/
WHY WORK WITH DAVID? THINGS YOU SHOULD KNOW...
For all our analytics we are agents driving some very unique and advanced tech. We Provide a granular and custom experience that empower our clients with the insight and tools to understand the most complex behaviors of any local markets.
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Analytical
Over 100 reports produced to date
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Knowledgeable
Over 1800 published articles and counting
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