Downtown Miami is making a comeback as the hot-spot for developers looking to erect new condominium towers. In the next couple of years, six new condo projects are scheduled to begin construction, and developers have been dropping hints about several others to follow.

The majority of the confidence from developers seems to be coming from the new intended target: international buyers who tend to pay cash for residential real estate. Also, the risky 20 percent deposit pre-sales, popular during the last housing boom, have been pushed aside for newer, more risk-free models.

Miami builders have decided to hedge risks as much as possible by requiring as much as 80 percent of the full condo price from buyers before construction is even finished, according to an article about this new construction market on HauteLiving.com. Typically, this breaks down to 20 percent at pre-construction, 20 percent at the onset of construction and 30 to 40 percent as the finishing touches are being made and the building is being approved for occupancy.

Craig Studnicky, principal of RelatedISG, said, “The beauty of this business model is it separates the men from the boys. There are no speculators. The contracts are not assignable. These are people that are planning to live there or invest and use them as rentals.”

The past two years have been extremely profitable for the Miami condo market. During these years, cash buyers purchased thousands of units at discounted prices, creating a growth in Miami population and a reduction in construction costs. Resales in South Florida are currently up by 65 percent this year, and according to The Miami Herald , only 2,000 of the 23,000 units constructed during the boom remain unsold.

Harvey Hernandez, chairman of Newgard Development Group, recently announced plans for a new tower which will be called Brickell House, located at 1300 Brickell Bay Drive. Hernandez is among Miami developers who are feeling very strongly about the new plan for condo sales.

“It’s time to think of where we’re going to be rather than where we were. It could not be a better moment for us to launch a project,” said Hernandez.

The majority of the demand for condos which allows developers to feel so optimistic is coming from outside of Miami. Buyers from Canada, Latin America, northeastern U.S. states and Europe have reportedly spent over $3.8 billion on South Florida real estate this year. International buyers currently account for approximately 90 percent of all South Florida condo sales, and builders are confident that this international demand can support all of the new condo developments in the works.

The new financing model is very popular in Latin America but has yet to be tested on a large-scale basis in the United States. Some believe that builders are testing the demand, and that the rumored projects may never be built if cash-buyers don’t materialize quickly enough.

Also remaining to be seen is whether or not international buyers really are helping reduce current inventories of unsold units. Many international buyers purchased units at discounted prices; as the market rebounds, they may choose to re-sell the purchased units.

Yet, despite some non-believers, Miami’s international-buyer following remains strong. With relatively low prices, Miami still remains one of the most ideal places for buyers looking to purchase second homes.