The luxury condos being built in Miami such as the Fendi Building, Muse and the Porsche Tower are among some of the premiere residences available in the world but don’t dismiss Fort Lauderdale’s emerging luxury market either. According to the Miami Herald, there are 42 new condo buildings with nearly 3,300 units currently proposed for the downtown Fort Lauderdale and Beach markets.
South Florida is an expanding area with a population that continues to steadily grow and developers are building luxury condos to meet the demand. Miami is a rising international city that is strategically important for trade and South America. Miami may be the urban capital of South Florida but it does not appeal to every demographic. South Florida’s luxury real estate is defined by micro markets attractive to different types of buyers.
South Florida’s million plus market in both Miami and Fort Lauderdale is a buyer’s market right now. The sales volume for Miami and Miami Beach in September was $139,769,000, and in October it dropped down to $92,296,500 whereas in Fort Lauderdale condo sale volume came in at $48,004,319 in September and in October dropped in sales to $10,965,700. Per square foot Miami and Miami Beach commanded $1320 in October, and Fort Lauderdale averaged $611 in October. Both cities are experiencing a slowdown in condo sales, and Fort Lauderdale is a much smaller less expensive market.
Part of the draw to Fort Lauderdale for foreign buyers is the the currency devaluation they experience against the US dollar. Their money goes much further in Fort Lauderdale than it does in Miami. As foreign buyers seek more stable conditions than their native countries increasing numbers seek properties in the US. Fort Lauderdale becomes a competitive attractive alternative to Miami for the buyers who are taking a big hit when their native currency goes up against the dollar. Fort Lauderdale’s low entry point into the luxury market is also a big draw for many affluent retirees and north easterners too who are may not be in the top .01 or 1 but are among the top 10 of earners.
Both Miami and Fort Lauderdale have changed quite a bit in the last five to ten years undergoing a complete makeovers. The influx of new money, new residents and developers setting their eyes on “Venice in America” means that the demand exists. Miami is a fast-moving, energetic a rising business and trade capital that is very much about living the glamorous life whereas Fort Lauderdale is more low-key and understated. Fort Lauderdale may just be the perfect spot for buyers looking for a slower pace but still craving the amenities of an urban environment, and Miami meets the needs of the global citizen and HNWI. Overall South Florida is a strong real estate market driven by increasing numbers of permanent residents moving to the Sunshine state for varied reasons.