Buyers are driving up property values, sales prices and occupancy in Miami’s real estate market

International and growing domestic demand from condo buyers has increased in Downtown Miami’s residential real estate market. The market has experienced a strong rise in sales prices, property values and occupancy over the past 12 months.

Miami is considered one of the most active real estate markets in America.

“Downtown Miami is now a 24-7 urban center recognized internationally for its cultural institutions, quality of life and global business,” Marc Sarnoff, City of Miami District 2 Commissioner and Chairman of the Miami DDA, said. “The real estate market is reflective of downtown’s status, attracting buyers, tourists and residents from countries across the globe who have helped usher in the next development cycle.”

Here are some of the key findings of the Greater Downtown Miami Real Estate Market Annual Summary Report, conducted by Focus Real Estate Advisors:

• The average unit sales price in the first quarter of 2013, including existing and new condos, was up over 21 percent to $425,498 from the first quarter 2010 average of $351,078.
• Per square foot prices were up over 14 percent on a year-over-year basis from the fist quarter of 2012 to the first quarter of 2013.
• More than 97 percent of roughly 23,000 condominium units constructed from 2003 to 2012 are now occupied with renters or owners. Less than four years ago, these same units were just over half full.
• 93 percent of new condos in the downtown area had been sold, reducing the unsold inventory to just over 1,500 units, as of December 21, 2012.
• 56 percent of condominium occupants are renters, occupying both investor-owned units and unsold units offered for rent by developers and building owners.
• The active development pipeline includes a total of 5,514 units with 65 percent of these already approved and under construction.

The new developments, strong demand from buyers and a thriving rental market are driving up property values in the Greater Downtown Miami district. According to the Miami-Dade Property Tax Appraiser, property in the Miami DDA district has seen an increase of 6.4 percent year-over-year in assessed value.

“Downtown Miami’s condo boom has been a catalyst for the entire region, putting it back on the map as a thriving real estate market,” Alyce Robertson, Miami Downtown Development Authority Executive Director, said. “International buyers snatched up almost all the existing condo product from the last cycle, signaling demand for new product faster than we ever expected. This growth is fueling Miami’s emergence as a true urban metropolis and global city offering far more than just sand and surf.”

Robertson adds that a slew of new condominiums are expected to break ground in the year ahead with 19 towers in the pipeline.