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Pre-Construction is Sign of Recovery in 2014: Different Trends From Last Condo Boom

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Miami's growth in real estate is a trend that many seem to be cautious about. But the greatest developers and market watchers aren't as reserved about the good pace of this market during the last two years.

We're living in a time in which Miami's social events include many condo projects announcements at the same time. Over 30 projects have been launched recently, and many negative observers seem to resent this trend. During a single day, three condos were launched in January, The Bond by developer Alan Ojeda in Downtown miami; The Crimson at Edgewater, by developers Stephan Gietl and Fernando Levy (this is the project's render at the image below!; and the SLS Brickell, by The Related Group.

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Even those who had foreseen the previous crisis of the condo crash think there are different factors this time that will strongly prevent a stagnation after the vibrant construction activity. Buying conditions have changed significantly, shifting from 20% downpayments to 50% downpayments, and with more cautious bank policies to avoid risky loans.

According to Jorge Perez of The Related Group, the beautiful SLS Brickell new condo is almost completely sold! His buyers agreed to make the innitial 50% downpayment before the completion of the high-rise 52-stories structure. The Bond actually started building withwout a loan, because of its 50% downpayment buyers, mostly Latin Americans and cash investors. This configurates a whole different model on which banks play a role during a further phase of the project in which contractors come about.

Lessons learned, Miami's heat for new pre-construction projects is sober and shows how great the momentum is to invest. Growth is under no argue, and Miami will lead investments in the US during this and more years to come!

Pre-Construction is Sign of Recovery in 2014: Different Trends From Last Condo Boom

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