By Sunny Isles Real Estate Expert on July 7th, 2011
The new condo construction in Fort Lauderdale began in 1998 with one of the most beautiful complex L’Hermitage Tower I. Immedately after it was sold, the L’Hermitage Tower II went on sale in 1999. Thus the beginning of new condo construction began in Fort Lauderdale. However, like any other market, the Fort Lauderdale real estate market soon became overbuilt and oversold to investors. During the 2008/2009 crash, the Fort Lauderdale area market hit rock bottom. However, since the beginning of 2011 it’s been rebounding very quickly. As a result, currently there are only about 100 units available for sale in a newer ocean front condo in Fort Lauderdale. Most of the buyers are foreign investors although few started emerge from midwest US. Please see CNBC reported video below.
As reported on CNBC – Steven Gietl, an Austrian investor made a 30 percent profit on a 62-unit Fort Lauderdale condominium conversion nine months after buying the property in a short sale. “We took this opportunity because where else can you buy a building which is built, rented out, with basically no development risk? South Florida is a great place to do that.”
Gietl attributes the swift sales to the discount he got on the property in the first place: “We bought at a significant discount,” he said, “and could still sell below replacement cost to our investors.”
One Canadian couple that recently bought, termed South Florida a “candy land” because of the currency exchange rates and high rate of foreclosures.
The Brazilians love Fort Lauderdale and have been making cash purchases for condos as well as single family homes in Fort Lauderdale.