Miami developers on the race for supply increase

Miami has been seeing a lot of developments recently due to the increased demand for condominiums.
During the last housing collapse, 22,000 condos created at the downtown area were left unsold. Now,
only 600 remain. All of this can be attributed to the flock of Latin American buyers taking an interest at
the city’s housing market.

Developers have been on hyper-drive as the inventory of available properties in Miami constantly
decreases while demand continuously rises. Out of the several projects in the city, the most ambitious
is the billion-dollar Brickell CityCenter, which promises to provide a microcosm of retail and luxury
residences.

The Brickell CityCenter will feature 800 condo units in two 43-story towers, a movie theater, wellness
spa and a hotel—all geared towards the Latin American buyer.

The project will also provide an office building and high-end shopping center.

According to Case-Shiller index, the national home prices soared by 9.3 percent in February with Miami
garnering as much as 10.4 percent. This increase in home valuation also caused an addition $40 per
square foot to the original $400 during the same quarter last year. This is according to Condo Vultures.

The developers are acting quickly and predictably by releasing several projects. During the last two
years, 25 new condo projects were announced. Along with the Brickell CityCenter, eight residential
towers will soon rise in the area, three of which from Related Group.

Although the market boom is certainly good for many developers and owners, Peter Zalewski of Condo
Vultures said that there is still the possibility of this upturn to spiral out of control and turn into another
bubble.

Swire Properties is aiming for a balance between residential and commercial with its Brickell CityCenter.
The retail space for the project is being built in partnership with the Bal Harbour Shops owner. Bal
Harbour Shops is a famous open-air shopping center. Yet while office spaces will indeed be provided,
the developers still plan to delay the construction until the demand for such space increases.

These construction projects have also affected nearby infrastructure. In order to meet the demand of
buyers for easy access to their properties, several developers have added bridges and renovated some
nearby areas. Swire even managed to get approval for a 1,600-space underground parking area.

The focus on high-end shopping has also picked up as Miami is seeing a lot of activity in the tourist
market.