By now everyone is aware of the real estate rebound in Miami. It seems new condo projects in Brickell and the surrounding areas are being announced on a daily basis in the Miami Herald. What isn’t discussed as much is land holdings of Miami developers.
You can’t ignore the open fields in when driving through East Little Havana or Midtown. In Brickell the land inventory is a bit more hidden because the investors are buying land with structures on them with intentions of tearing them down.
The last real estate boom is not too far in the past. I recall prices rose first in the lower to middle priced sectors followed by the luxury market. Demand fueled the desire for contractors to develop new homes which lead to increase in labor prices and material costs. This demand resulted in a shortage of prime real estate to develop.
However, contractors will always be able to find cheaper alternatives to standard finishes. An example of this was witnessed with Chinese dry wall. Obviously not the best choice, but as prices go up developers will value engineer more aggressively using faux materials to maintain perceived value. Some value engineering goes so far as to adopt a common method of a designer ready unit. In other words, you get white walls and a concrete slab and no light fixtures leaving the rest for your imagination and checkbook to finish.
One thing contractors can’t control so easily is the supply of land. There is only so much of Miami land to go around. As a result the price of land will inordinately dictate the price of a home as the market continues to heat up. For this reason, land is an attractive investment to diversify your real estate holdings.
Call me today to make a vacant land a new part of your real estate portfolio.
James McCloskey | 305.209.2929 | email@example.com
I am a Miami real estate specialist, covering Brickell, Coconut Grove, Coral Gables, the Miami Beaches, Key Biscayne, Miami Shores, South Miami, and Dadeland. If you would like to schedule a no obligation buyer or seller consultation, please call 305.209.2929.