Panama Papers Show Secret Money Tied to Luxury Miami Real Estate

By Sunny Isles Real Estate Expert on June 23rd, 2016

Miami real estate

As you’re probably aware by now, at the beginning of April, the International Consortium of Investigative Journalists dropped a bombshell when they published leaked documents that have since become known as the Panama Papers. In total, there are some 11 million documents which allegedly make clear that worldwide corruption is happening thanks to a clandestine financial network that ensures large sums of money never get taxed.

Ties to Miami Real Estate

If some of the information is accurate, the network has fingerprints all over Miami. For years, it’s been well known that the luxury real estate market here is eyed by buyers all over the world, many of whom make purchases anonymously. This was seen as one of the driving forces behind the Miami luxury condo boom – click here to see the website.

Now, though, a much different picture is being brought to light—one that depicts these beautiful homes as simply hiding places for billions of dollars.

Shell Companies and Condos

The way it would allegedly work is that the law firm of Mossack Fonseca would set up foreign shell companies for the wealthy members of this network. This is the firm that the leak originated from and, as they’re based in Panama, that’s how the name started.

A client of Mossack Fonseca’s could then put money into one of these shell companies and that organization would then purchase a luxury unit somewhere in Miami—we’re definitely not lacking for options, after all.

This sort of transaction would effectively hide the money from governments looking to levy taxes on people like Paulo Octávio Alves Pereira, just one man who was allegedly a part of this scheme.

Paulo Octávio Alves Pereira

In Brazil, Paulo Octávio Alves Pereira is known as a politician who is under indictment on charges of corruption. However, prior to his political life, he made his fortune by developing shopping centers throughout his home country.

When his old boss had to step down as governor of Brasilia after being arrested for bribery, Paulo Octávio Alves Pereira stepped in. However, he was quickly slapped with the same charges.

At some point, Pereira took an interest in Miami real estate, though. He purchased a beautiful unit at the luxurious St. Regis Bal Harbour, where 24-hour room service is just one of many amenities available to residents.

However, this would make him just one of 19 foreign nationals named in the report who reportedly bought properties in Miami-Dade County. He also makes a much more exclusive list as being one of the eight who has been linked to some type of crime back in their home countries.

The U.S. Treasury Department’s Own Investigation

Keep in mind that the U.S. Treasury Department had launched its own investigation just a couple months ago into these shadowy dealings. They specifically took aim at the shell companies that were scooping up real estate for anonymous buyers and paying in cash.

Considering foreign nationals spent $6.1 billion in South Florida homes last year, the department certainly has its work cut out for them, though the Panama Papers definitely help.

Super Rich? Miami Is the 12th Top City for You

By Sunny Isles Real Estate Expert on May 31st, 2016

1000 Museum Miami Zaha Hadid

For those of us who live in or around Miami, it comes as no surprise that there is a lot of money here. Sure, there’s been a bit of a slowdown recently to our famous condo market, but that hasn’t done much to stop the ultra-wealthy from making Miami their home (or at least one of them). According to Knight Frank, though, our beautiful city is actually the 12th best place for the super rich to live.

Dropping Out of the Top 10

Knight Frank made these comments to the Real Deal last month. Although it’s definitely good news—wealthy people bring lots of money—there’s a bit of bad mixed in with it too.

As it turns out, Miami was actually ranked number six last year. This year, we fell out of the top 10 by a fair amount. Still, it’s not like we’re not in good company. Tokyo is right ahead of us. Furthermore, 12th place makes us second place for cities in the United States. New York City took the cake there.

Still, are you curious what caused us to slip?

A Dent in Foreign Currencies

Unfortunately, it’s mostly out of our control. Frank claims that weakening Latin American currencies are actually to blame.

On top of that, it doesn’t help that the U.S. dollar has been getting stronger. While it’s definitely good for the economy as a whole, a lot of foreign currencies simply don’t have the buying power they once did, meaning investors from other countries will look for other opportunities.

Frank even said that he regarded this drop in the rankings as nothing more than a “blip.”

For his part, he recommended keeping an eye on Coconut Grove and Miami Beach as the top neighborhoods in Miami for future investment opportunities.

The Top 10

As we mentioned above, we lost to Tokyo, which came in at number 11. The rest of the top 10 looks like this:

1. London
2. New York City
3. Singapore
4. Hong Kong
5. Dubai
6. Shanghai
7. Paris
8. Sydney
9. Beijing
10. Geneva

Making the List in 2017

Hopefully, Frank is right and Miami bounces back next year. Again, wealthy people represent money and opportunity for the rest of us.

That being said, there’s some reason to remain cautious with your optimism. The Financial Crimes Enforcement Network began requiring that title insurance companies essentially verify the identity of anyone who wishes to purchase property in Miami.

Why is this a big deal? Well, there are suspicions that much of the money that helped the condo market explode in the last few years is coming from foreign shell companies that operate as illegal tax havens.

While it’s good to ensure these investors aren’t breaking the law, cutting them off could hurt Miami’s economy.

At the end of the day, Miami is still an amazing place to live and people are going to continue trying to find a home in Miami to enjoy this incredible city. Still, here’s hoping our economy picks up again and we start making some progress on that list for next year.

Bay Harbor Islands Going Under Massive Redevelopment

By Sunny Isles Real Estate Expert on May 24th, 2016

Miami real estate for sale

Bay Harbor Islands – (view website) sits between North Miami to the west and Bal Harbor and Surfside to the east and was once the best place you could visit to see mid-century Miami Modern style architecture—often called MiMo—in the entire country. Recently, though, it’s become clear change is coming.

Some of Miami’s Best Architects

In many ways, Bay Harbor Islands can be seen as a gallery for many of Miami’s best architects. Head to Bay Harbor’s East Island and you’ll find a number of low-slung apartments and condos that were designed by legends like:

• Henry Hohauser
• Morris Lapidus
• Charles McKirahan

They took the art deco style that was so widespread in Miami during the 1930s and pulled it into the MiMo designs that cropped up during the middle of the 20th century.

The famous Bay Harbor Continental, a co-op building in a curvy wedge shape that is anchored by a cylindrical outdoor staircase, was created by McKirahan in 1948. It also features multi-colored glass that dots certain portions of the exterior.

McKirahan is also to thank for the Bay Harbor Club, the two-story V-shaped building located right on the water with great beanpole columns going from the ground all the way to the ceiling. Fans of the TV series Dexter would most likely recognize it as the main character’s home.

Times Are Changing

Although much of this history is worth maintaining, there’s a reason the National Trust for Historic Preservation named East Island to their annual list of their “11 Most Endangered Historic Places” back in 2014.

Many examples of MiMo architecture have already been demolished, though plenty more are awaiting their date with the wrecking ball.

What will this secluded portion of Miami become in its next life?

If current trends are anything to go by, it’s going to transition into boutique living. The area is truly a hidden gem. It offers a great location to anyone who wants to get around the city or hit downtown. Of course, if you want to visit the beach, you’re almost always within walking distance. This means plenty of waterfront views too.

Furthermore, the area benefits from an excellent school district. There are also Bal Harbour Shops nearby to enjoy too.

Its greatest feature, though, may simply be a sense of community. Whereas other areas throughout the city are expansive, Bay Harbor Island’s odd positioning gives it a small town feeling, despite all the big city amenities that are within driving distance.

Although most people who can afford these new developments will definitely have enough money for an automobile, public transportation in Bay Harbor Islands is very accommodating.

There is a free shuttle that runs between 9am and 5pm, Monday through Friday. It makes stops in North Miami, Surfside and other popular locations. There are also public bus routes people can jump on too.

While Bay Harbor Islands definitely had a good run, it’s clear that the time for change has arrived. Hopefully, much of the amazing architecture the area is known for will remain and new examples of Miami’s top talent can find a home as well.

Check out homes for sale in Bay Harbour Islands HERE – www.sunnyislesmiamirealestate.com/Bal-Harbour/Bay-Harbor-Island/ and call our office to set up showing – (305) 336-0457.

Art Dealer Larry Gagosian Buys Faena House Unit for $13M

By Sunny Isles Real Estate Expert on May 5th, 2016

Faena Condos For Sale

If you’re remotely familiar with Miami Beach real estate, Faena House needs no introduction. The luxurious condo complex is one of the nicest in the city. The closest thing you can get to an objective ruling on this happened in September of last year when a penthouse went for $60 million, a new Miami record. While the previous record for a condo in Miami-Dade County was $3,342 per square foot, this transaction beat it handily with $4,794. See all available Faena condos for sale HERE.

Therefore, to learn that art dealer Larry Gagosian recently purchased a condo in the building for $12.995 million is suddenly a lot easier to believe. Still, let’s take a look at the details.

Gagosian

For those who aren’t familiar with the man, Larry Gagosian is an Armenian American art dealer and collector. He owns the Gagosian Gallery art galleries which enjoy an international presence. You can find them here in the U.S., but also in Paris, London, Athens, Rome, Hong Kong and Geneva.

The Unit

Gagosian will be laying his head down in unit PH-C of the 18-story Faena House according to Miami-Dade County records. The unit—one of 42 in the entire building—has four bedrooms and six-and-a-half bathrooms.

It’s 4,730 square feet, so Gagosian dropped roughly $2,747 per square foot. He also got a beautiful terrace to take in the view. That’s another 1,516 square feet.

Other Occupants

The new resident will be in good company. As we mentioned above, the building is notable for having the most expensive unit—per square foot—in the entire county, which is saying a lot.
Ken Griffin, a hedge fund manager and billionaire, is the owner of that unit. Still, with an annual salary that’s believed to be about $1.7 billion, the amount actually wasn’t that much (you can bet he owns other properties too).

In fact, Griffin shocked people a second time when he put the penthouse—and another unit in the building he owned—right back on the market. He paid $60 million for both and then listed them for $73 million.

Other extremely wealthy neighbors Gagosian will be seeing in the lobby include British billionaire, industrialist and philanthropist Alex Blavatnik. Lloyd Blankfein, the Chairman and CEO of Goldman Sachs lives there too.

Craig Effron—another hedge fund manager—is also a resident, as well as Mark Rachesky, Chuck Khubani and Jose Fanjul Jr.

If you’re feeling left out, don’t worry. The developer, Alan Faena, has plans to build three more oceanfront towers packed with luxurious condos just like the ones Larry Gagosian bought. Right now, the address for the initial one is 3315 Collins Avenue if you want to get an idea about what $13 million can purchase.

Whether or not Gagosian actually stays in Faena House or if he’s simply another investor will take some time to find out. However, if Griffin’s confidence is anything to go by, the luxurious tower may represent a real money-making opportunity. Worst case scenario, you have a beautiful home in one of the most sought-after buildings in one of the most sought-after markets in the entire world.

Lana Bell – One of the Top Realtors in Miami, Fifth Year in a Row

By Sunny Isles Real Estate Expert on April 30th, 2016

Lana Bell Top Realtor

It’s no secret that the real estate market in Miami is one of the most dynamic in the entire country and probably the entire world. Becoming a realtor here is easy — there is no lack of brokerages to choose from, but succeeding means competing against some true all-stars. With so many houses and condos carrying price tags well into the millions of dollars, there’s plenty of motivation to reach the top. Still, for Lana Bell to land in the winner’s circle for the fifth year in a row is nothing short of amazing. Let’s take a look at some of the factors that help explain her success.

12th in Overall Sales Activity, 8th in Condo Sales

During the 2015 Lana had sold over $83,000,000 in inventory, which includes single family homes, condos and pre-construction projects – (see all preconstruction projects here). During 2014, Lana had sold over $110,000,000 and became number 1 in condo sales among 47,792 agents. Since 2010 Lana had been the top real estate agent in Sunny Isles Beach.

Lana Bell Sunny Isles Realtor

Currently with ONE Sotheby’s International Realty Sunny Isles Beach office, Lana is dedicated to taking a proactive approach, using effective campaign strategies to target real estate markets on a global scale. She had established a tradition of providing incomparable real estate services, along with a proven track record which is based on a reputation of reliability, integrity, and innovative skills.

14-Year Career

In some parts of the country, having 14 years of experience in real estate may make you a veteran. Here in Miami, though, plenty of realtors have been in the business for twice as long as Bell and don’t have anything close to her resume to show for it. For almost half her 14-year career, Bell has been one of the top earners in one of the most competitive real estate markets in the world. Don’t expect that to change anytime soon either.

Perhaps even more interesting — but maybe not completely unsurprising is that Bell has had success in other industries too.

Before Real Estate

After graduating college, Bell went into full-on entrepreneurial mode and started her own computer consulting firm in New York City — not exactly the minor leagues there either. Aside from founding it, she ran the business and quickly turned it into a winning company.

Seeing that the real estate market was thriving in Miami, Bell made the jump to another industry. More success was right around the corner.

The Lana Bell Approach

It would be impossible to summarize how Bell has created so much success for herself. Obviously, hard work is essential. However, when it comes to real estate, Bell is ardent about being upfront and honest with her clients. Sure, that’s what all realtors say….

Not all of them have the past five years to back it up, though. When Bell gets a new client, she combines her honesty with education, so they’re in the best possible position to make a decision they’ll be happy with.

This approach earns the trust of her clients which she then repays by helping them find their dream home. Obviously, it’s working as Bell is never lacking for new clients, whether they’re homebuyers or investors.

Although the real estate market in Miami is definitely going through a bit of a transition period at the moment, it’s likely not going to be a problem for Lana Bell. If you’re looking for someone to help you find a home or condo, you can call her at 305.336.0457 or you can send her an email.

Real Estate Investments Increasing for Kazakhstan

By Sunny Isles Real Estate Expert on April 26th, 2016

Sunny Isles Condos for sale

Kazakhstan, which is an oil-rich country located in Central Asia, is searching for a way to increase returns on a possible $93 billion from wealth funds. As a result, some of the biggest private equity players in real estate may be the beneficiaries. The problem for this country in regards to investing and actually making money is an issue with the oil prices continuing to fall.

Nursultan Nazarbayev, the president of Kazakhstan recently hosted a dinner in September at the New York based Four Seasons Hotel. This was attended by a number of big names, including Henry Kravis, the founder of KKR & Co., Stephen Schwarzman the chair of the Blackstone Group and David Rubenstein, the co-founder or the Carlyle Group.

Creating Investment Opportunities

The idea was for Nazarbayev to create interest in various investment opportunities that were present in his country; however, Kazakhstan also has plans to increase their own investments in regards to real estate, hedge funds and private equity in order to boost their returns.

The $64 billion National Fund in Kazakhstan has begun to struggle in regards to achieving a return of two percent each year for the previous five years. This country is the largest exporter of energy in Central Asia and now searching for real estate, as well as other types of alternative investments, as the price of oil is close to an 11 year low and the returns that are received from commodities have fallen to levels that have not been seen since 1999.

Finding a Worthwhile Return

According to the CEO of the National Investment Corp. in Kazakhstan, Berik Otemurat, the country is essentially sitting on a large amount of cash, but not able to see any type of significant return. It is especially important to address this issue because of the less than optimistic outlook for the price of oil and the reduced amount of inflow to the National Fund.

Real estate is considered extremely attractive for sovereign wealth funds. This is because last year, they returned an average of 14.1 percent, which was close to double of their 7.4 percent target. For example, Arabian Gulf funds are changing investments because of their financial services and moving into retail and hotels. Taking time to realize this allowed the Kazakhstan government to find better ways to invest their money and see it grow. Many investors from Kazakhstan are buying Sunny Isles condos While the government is still working to make deals with worldwide real estate moguls, it is an effort that is likely going to pay off in the near future.

Through December 7, sovereign investors were considered a net buyer of over $36 billion in total real estate around the globe. This shows the active moves that these countries’ are making, not just Kazakhstan; however, this is a country that is considered up and coming in this industry to attempt and make their wealth grow and increase the value of the investments that they make. While they have oil commodities to fall back on, real estate offers them a stable option for growing wealth.

Tips to Avoid the All-new LLC Disclosure Law

By Sunny Isles Real Estate Expert on April 15th, 2016

Miami Beach condos for sale

Thanks to the new federal disclosure requirements, which go into full effect in March, Manhattan and Miami luxury real estate (click here to view site) buyers are going to be thrust into the spotlight.

No longer is anonymity the name of the game, with this new requirement, these high-end buyers are going to have the shield of a limited liability corporation taken away. While this will not result in the complete end of anonymous buyers, it is going to limit their “hiding” quite a bit.

This new requirement is an effort that has been put forth to try and uncover any illicit funds that are being laundered through luxury real estate in New York and Miami. According to the U.S. Treasury, cash purchases made in Manhattan and Miami through shell companies are going to be tracked and will apply to deals that are $3 million and more in New York and $1 million and more in Miami. This means that title insurance companies will be required to disclose the identity of the buyer to the government regulators.

Some strategies that buyers can use to help overcome these new requirements can be found here. While they are not ideal for everyone, they can provide some effective steps in avoiding this new tracking requirement.

Utilize a Straw Buyer

Buyers can set up a “nominee agreement,” with their chauffeur, where the chauffeur is being named the owner of the LLC that is purchasing the upscale condo. Once complete, the buyer is able to purchase the LLC, rather than the condo, from the chauffer. This means the transaction is not on the books.

Set Up a Non-LLC, Partnership or Trust

While each member of an LLC has to be identified, there are other legal entities that only have to disclose an owner that holds over 25 percent of total ownership. If the shell company has 100 shares that are divided equally among 10 different people, they are able to remain anonymous.

Purchase Via Wire Transfer

The government regulators are only tracking buyers who are paying by certified bank check or cash. If you pay with a wire transfer, all this can be avoided. However, there are some tight banking regulations that will require the customer be identified, as part of the “Know Your Customer” requirement.

Opt Out of the Title Insurance

There is really no comparison to a $1 million lawsuit when you have just purchased a multi-million dollar condo. While this is a rare occurrence, buyers can opt out of the title insurance completely.

Wait about Six Months

This new requirement will be effective starting March 1st and will expire on August 27th. If you are really nervous, just wait six months to make the purchase.

Buy Commercial

While this may seem obvious, the fact is, the current order only applies to the residential purchases made in Manhattan and Miami. All commercial purchases have been excluded, which means that buyers are able to purchase properties for investment while retaining a relative amount of anonymity.

For more information on luxury condos in Miami Beach for sale please contact One Sotheby’s International Realty office at (305) 336-0457.

Cheaper Land Results in the Redevelopment of North Miami Beach

By Sunny Isles Real Estate Expert on April 13th, 2016

Miami commercial real estate

The blue-collar aesthetics of North Miami Beach, including the mid-rise apartments and traditional shopping centers found down Biscayne Boulevard is about to see a significant facelift. More and more luxury condo developers are scooping up the vast areas of land that are available in this area to develop new, luxurious high-rise buildings, as well as mixed-use projects. This is all in hopes that this development will lure in new buyers who are searching for great deals near Sunny Isles Beach and Aventura.

Projects “In the Works”

Currently, there are about 8,000 new rental units and condos being planned and presold on a stretch of Biscayne Boulevard that lies between the Northeast portion of 151st Street and Northeast 176th Street.

Thanks to lower land prices, developers are coming to this intercostal area, which is allowing them to build units that are more reasonably priced, but also close to the water. Another appealing factor is that they will soon be serviced by the Tri-Rail commuter train, which will be making passenger stops at 163rd street as soon as 2018.

Appealing Real Estate in Miami

A number of developers are also receiving encouragement to build along the intercostal area of North Miami Beach, which recently passed all new zoning regulations last March, which allow for higher density projects for the Biscayne Boulevard area. Please CLICK HERE to see Miami commercial real estate opportunities.

In the past few years, developers have begun to actually build, or announce their intentions to build, new condo towers, as well as mixed-use projects. Last February, the Plaza Group completed the first of the two buildings that are making up the Marina Palms project. Each of the towers is 25 floors and together offer 468 units. Other features are a yacht club and marina that provide 112 boat slips. Currently, about 80 percent of all the units in the south tower are sold, and closings have started for the recently completed north tower.

Additional Developments Coming Soon

Another new development occurred in August, with Key International and 13th Floor Investments closes on a deal worth $30.5 billion to purchase land along the Biscayne Boulevard corridor. This purchase will be the home of a twin-tower condo, named The Harbour. The 32 story buildings will include 425 total units and about 70 percent of them have been sold currently. These range in size from 2,442 down to 1,032 square feet and can be purchased for between half a million and $1.2 million.

Real estate in this region is continuing to sell and be developed, which is helping to attract a higher-end buyer to the area, who may be trying to escape the higher prices found in nearby Miami Beach. There are several condo projects in the works and quite a bit of the land along Biscayne Boulevard is spoken for and being developed in the near future. There is no question these luxe and posh condos and apartments are going to attract a higher caliber of buyer, allowing developers to flex their creative muscles while creating upscale units for those who appreciate the finer things.

According to Economist, Miami Real Estate Getting Close to Peak

By Sunny Isles Real Estate Expert on April 9th, 2016

Four Seasons Miami for sale

According to a national economist who spoke at the Four Seasons Hotel – www.sunnyislesmiamirealestate.com/Downtown-Miami/Four-Seasons, the majority of Miami’s real estate sectors are currently at, or about to reach their peak levels.

While the majority of other real estate sectors across the nation are positioned to expand, there are a number of local markets that have currently seen quite a bit of growth, including Miami and according to Hugh Kelly a clinical professional and member of the Counselors of Real Estate, it is about time to start playing defense.

Existing data has suggested that there is still some room for the Miami office market to grow, but it also shows that the apartment and hotel sector have reached the peak. Rental and industrial sectors in Miami are getting close to peak levels, as well.

Monetizing Gains in Miami Real Estate

When it comes to ensuring those gains are preserved and monetized, if possible, there are a number of things that must be considered. For example, is it a hold or sell strategy? If acquiring it is important to base a purchase on existing cash flow, rather than future appreciation. Thinking defensively will help a person figure out where they stand in this cycle and ensure that it runs in their favor, rather than reacting to the cycle as it is turning.

However, most trends are favoring Miami in the long-term. For example, Miami is considered to be a 24-hour city, which is a location that tends to be extremely beneficial for real estate investors who are in it for the long term. Also, financial markets are currently going through a volatile period, which will cause an increase in the flow of cash toward the real estate, making it what is considered a “safe haven.”

In many cases, the reasons above are why gateway cities (such as Miami) do so well in regard to foreign capital.

Current Challenges

However, because of increasing capital rates, interest rates and rises in regulations, there has been a deceleration in regards to international capital flows. This is going to result in some marginal deals falling apart across the nation. This results from the capital pool being deep, but not limitless.

The bottom line is, if an investor knows what they are doing and remain awake, knowing when to play defensively and offensively, they will do fine in the US real estate market. Also, there is not much talk of major corrections in the majority of hot real estate markets, except for some places that are extremely overpriced and saturated, such as Manhattan

The fact is, even in hot markets, building 5,000 apartment units that require buyers at $10 million or more will experience a thinner customer base.

Future Outlook

With the foreign currencies dropping steadily, it is believed that Miami may be heading for a price correction. It is only a matter of time before an investor from South America sells their units for under market value. Also, there are quite a few residential units being constructed. This may eventually lead to an oversupply of the market from a residential standpoint.

The Real Estate Cycle in Miami for 2016

By Sunny Isles Real Estate Expert on April 5th, 2016

Miami Beach condos for sale

Even though there is quite a bit of confidence among developers in Miami that the real estate market will not face much of a downturn during 2016, there are some experts who are still cautioning that the sales are going to continue to fall. This may result in some type of mild recession when December rolls around.

Prices are likely going to continue to go up – (see Miami Beach prices for condos for sale) and appreciate during the first portion of the year; however, at a rate that is much lower than usual. During the last portion of the fiscal year, the prices will likely flatten, due to an increase in inventory, as well as a slower demand from the buyers in Miami.

The Selling Trends in Miami

According to Ugo Colombo, the CEO of the CMC Group, when condo sales begin to move slower, it is a sign of a real estate market that is healthy. He also stated that this means that the market is able to level off at rates that make the progression sustainable. There is no realistic way to continue to sell 100 units each month. Currently, a healthy balance is present in the market regarding supply and demand.

Since the middle portion of 2014, the increase of foreign buyers helped to impact the condo boom. This began directly after the recession in 2008 but has now has begun to taper off because of the reduced value of foreign currency compared to the value of the U.S. dollar. However, Colombo stated that the real estate market in South Florida has gotten so diverse that it is able to successfully weather the economic issues in countries where a number of developers cull their buyers.

Foreign Investments Increasing

There are a number of people from the Middle East, Asia and Europe who are interested in buying who are new to the area, having never made a purchase in the past. The Brickell Flatiron condo project is also beginning to experience more steady sales from buyers that hail from the Caribbean, Mexico, Colombia and even domestic markets, such as New York.

The Melo Group’s Carlos Melo, which has currently developed condo and apartment projects in the Edgewater area, as well as the Arts & Entertainment District stated that there will be a consolidation seen in the South Florida real estate market for 2016.

Is an Overextension in the SoFla Condo Market Coming?

The most recent statistics that are available have indicated that the condo market in South Florida is starting to see the struggle associated with overextension. According to the report from the Association of Miami Realtors, there was a total of 14,770 condo transactions throughout November, which was down from the 17,142 that were seen in the same period the previous year.

With the sales slowing down, the total number of condo buildings that are planned or being constructed has continued to increase. There are plenty of condo towers being built currently and a number that are still in the planning and proposal phase, which means that they are likely to be developed and completed in the next few years.