Real Estate For The Millennium

South Florida Real Estate Market Zooms into the 1999!

New luxury developments continue to rise along the skyline of South Florida, from Coconut Grove to Brickell to downtown Miami to Aventura and points North. Although the economy suffered some dips in1998, due to a strong recovery it appears that South Florida real estate development will continue to thrive. According to David Dabby, senior vice president of Miami based Appraisal & Real Estate Economic Associates (Known as "AREA"), Miami-Dade, Broward and Palm Beach Counties are projected to hit the $4-billion mark in construction loans this year, as local banks particularly have stepped forward to provide financing for what they consider to be worthwhile projects. "We in South Florida are headed for the biggest construction year in history," says Dabby. But the most encouraging news is that the luxury condominium market in South Florida has remained particularly strong. It is estimated that in 1998 over 1,500 Luxury condo units (defined as units selling for more than $150,000)will have been sold and closed, which may be a record high for one year and South Florida may be the leading Luxury condominium market in the country aside from New York.

Several factors have contributed to keeping the supply of units from glutting the market, including certain local decisions regarding down zoning. Another factor which has kept the supply of units in pace with the demand is the fact that over 50 percent of purchasers of luxury units are from offshore, which, again, is a situation unique to South Florida, which attracts both Europeans and South Americans.

Among the most exciting new projects to hit the boards this year are The Continuum, on the beach at the foot of Ocean Drive, the Yacht Club at Portofino, and the Metropolitan on Brickell Avenue, among others. Another cause for excitement is the renovation of old hotels and the construction of new ones, particularly The Loews Hotel, the first new hotel to be built on Miami Beach in over 30 years. Many real estate experts believe that the debut of the Loews will be followed shortly by other new hotels on Miami Beach, as well as the expansion of the Miami Beach Convention Center.