The forces of demand and supply govern every market including the luxury real estate. As buyers see more options coming up, they have a broader market. That means that the demand is less than the supply. You don’t need an explanation for that. Just look at the Miami Beach real estate and see the many projects; either being completed or in the process of construction. And yet, others are still at the stages of pre-construction. In the coming years, the inventory is expected to enlarge. Due to the boom that was there in the recent years, investors saw Miami as the best location for luxury projects. Even though the demand is on the rise due to the interest by many buyers from all parts of the world, the supply is far much higher. That works to the negative on the side of the investors who are forced to lower the prices per unit on sale. However, things are getting better for the buyers.
A forest of condos
The landscape of the entire Miami Beach luxury real estate is changing. What is there now is nothing but a forest of condo towers. To an investor, that is not good. The supply is almost excessive with the foreign influence reducing in the past one year; things are under recession. The prices of condo units have to get lower than it is for a luxury atmosphere.
Need to sell and less demand for units
After the condos are complete, of course they have to be sold out for the investor to have his/her money back. Due to the competition from fellow investors around Miami luxury real estate market, selling units is not that quick task to achieve. Sellers are opting to sell at a cheaper price than planned to attract buyers. Buyers on the other hand have nothing but smiles. The prices set and room for negotiation are friendlier with regard to affordability. Of course the units are quality ones. Buyers will like them especially now that the prices are lower. It is expected that it is only a matter of time before the market goes into a boom again. More buyers will be looking to buy now.
Some investors are opting for rentals
As a matter of fact, the demand is not as high as the supply for luxury condos. That kind of an imbalance never works nice for an investor. They have to look for ways to get their money back. That said, some of the investors of the Miami real estate are opting to rent out their condo units for a certain period. That is set to try and get something back before they can permanently sell out the condos.
One thing that remains is that it’s time for the buyers to make the most out of the market situation. Things might change in the coming years. Be ready to take the opportunity now.
ONE Sotheby’s International Realty | Sunny Isles Real Estate
Yuliya Kachko Group (ONE Sotheby’s International Realty) is located at 18288 Collins Avenue, Suite 1, FL 33160. The website is https://www.ykrealestate.com/. Business phone number is 305-310-9305. Prospective buyers and sellers can also send their inquiries to [email protected] Interested clients for Miami luxury real estate can fill in and submit an online form and will be contacted by any certified representative from ONE Sotheby’s International Realty.
Yuliya Kachko Group with ONE Sotheby’s International Realty focuses on the luxury condos and homes sale in the markets such as Miami Beach condos for sale, South Beach condos for sale, Surfside real estate for sale, Bal Harbour condos for sale, Sunny Isles Beach condos for sale, Golden Beach FL homes for sale, Aventura condos for sale. For more local markets news please read our Miami real estate blog.