Despite rising interest rates and signs that the Florida housing market is “cooling off”, industry professionals understand that property prices may still remain skewed upward. And it’s not just demand, which remains significant, but the price of building materials.
New condos will dictate prices
New developments in Miami can have a big impact on average property prices, especially in the luxury segment.
Miami is now home to hundreds of new buildings still under construction or under construction. The Brickell region alone will receive thousands of residential units in the near future. For these projects to be delivered, an expressive amount of construction material and raw material for the finishing of the units will be consumed.
In a global context of pandemic and imbalance in the various production chains, there is a lack of material on the market. The available material is offered at very high prices and new orders are already negotiated with an updated price list.
More expensive materials can have no consequence other than higher prices for units sold.
In the case of pre-constructions, it is possible to reserve the units at plant prices and guarantee a lower price, in the first phase of the launch. However, the following phases of commercialization will already have a new price table reflecting the rise in construction materials.
When these new developments are completed and delivered to the market, they will not only bring in high construction prices but also real estate appreciation and inflation.
Not only will the new condos appreciate in value, but they will also drive up the price of the old ones, which will drive up the average property price in Miami overall.
Opportunity for investors
Faced with a scenario of high prices and also inflation, buying real estate in Florida is today one of the most solid and promising global investments. Seize the moment and link part of your equity to a strong currency.
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida. If you want to know more about real estate opportunities in the region, contact me right now and chat with me by WhatsApp: + 305 318 6968 (Heloisa Arazi).