The rollercoaster real estate market in Miami is booming yet again after experiencing its worst crash, which left dozens of failed condo projects and unfinished buildings.
Adler Group, Area Property Partners LP and Related Group of Florida are amongst the builders who are developing amidst a shortage of rental properties now that the economy is finally beginning to improve. The average rent for an apartment with two bedrooms has risen by 6% in the third quarter of this year to $2,568 per month, brokerage and consulting firm Condo Vultures LLC says.
"There's a boom in Miami that we've never seen before," claims Stephen Ross, the founder and chairman of Related Cos, which is based in New York. Ross also owns the Miami Dolphins football team and attended the Bloomberg Real Estate Conference in the Big Apple on 13th November. "Miami is probably the hottest real estate market in the US from a residential perspective," he added.
With the great majority of the unoccupied, unsold condominium towers, which were dominating the skyline of Miami just two years ago, now having been converted to rental properties, the amount of multifamily developments has started to soar. This is according to Dallas-based Witter Advisers LLC. The research company predicts that up to 3,000 rental units per annum could be added in Miami-Dade County through to 2015, including both the downtown and the metropolitan area, which is more than twice the average yearly total for the previous three years.
Rental activity has jumped by 12% in greater downtown Miami during the third quarter of 2012 to 1,650 from 12 months ago, estimates Condo Vultures, which is based in Bal Harbour in Florida. The population of Miami increased by 2.1% last year in what was its biggest increase in a decade.
