Residents of Miami, Florida may have noticed quite a few recent additions to their city’s skyline as foreign real estate moguls move in with elaborate condominium plans. Back in the mid 2000s when the American housing market suddenly crashed, foreign developers jumped at the chance to buy prime pieces of waterfront property at dirt-cheap prices, and now their investments are beginning to pay off. According to one Miami broker who oversees real estate deals, Miami is beginning to run out of undeveloped property, and the price tags that now accompany ideal resort locations are at record highs.
Perhaps the best indication of Miami’s booming real estate market is the fact that high-profile fashion designers, including FENDI and Armani, have recently revealed plans to construct towers and luxury condominiums in the area. Italian designer Giorgio Armani revealed his plans to install a 60-story tower in Sunny Isles Beach, and these plans were just followed up by FENDI’s announcement of its partnership with condominium developer Château Group. This partnership, which is FENDI’s first big break from the high-end fashion world and first foray into the real estate industry, will result in a 12-story luxury resort on the waterfront called FENDI Château Residences. Individual units are predicted to range from 3,000 to 7,000 square feet, and could cost anywhere from $5 million to $22 million each.
Although big development projects will be good for the Miami economy — just think of how many retail opportunities will pop up as new residents with flexible budgets start to move in — real estate attorney and partner at Bilzin Sumberg law firm John Sumberg notes that the influx of designer developments will likely have some negative effects on developements that cater toward the average middle-class American. Condos which are considered “ultraluxury” developments may end up prohibiting the growth of more affordable condominiums, office buildings, and retail stores. This lack of affordable spaces may end up hurting Miami in the long run, as more middle-class Americans express the desire to move to warmer climates and live in low-maintenance residential buildings.