The annual Bilzin Sumberg Development Conference 2023 in Miami brought together representatives of developers, credit organizations, and investors to discuss the key market trends. Condo redevelopment is considered one of the major opportunities for the future.
The most popular decision for international investors wanting to enter the South Florida market is creating a joint venture with a local firm that possesses experience and knowledge of consultants, public officials, potential investors, and non-profit organizations from this region, which may prove useful for obtaining construction permits and implementing development projects.
Redeveloping old condominiums has lately become a particularly attractive niche for such joint ventures. The demand for housing in this part of the state grows steadily, and vacant land for development keeps growing scarcer. Besides, recently adopted laws introduce requirements to buildings’ safety and assigning a mandatory budget for reconstruction. Owners of obsolete buildings who do not have sufficient funds for large-scale repairs often prefer to sell their homes.
One of the most acute issues for South Florida residents is affordable housing. Developers are trying to satisfy this demand through creative cost models and planning and zoning strategies. Municipalities also play an important role in this process: they frequently allow private development on publicly owned land.
Developers are also actively looking for ways to cut construction costs and insurance expenses. Sustainability and resilience principles are among the priorities too. David Martin, CEO at Terra, thinks it essential to integrate climate-resilience and eco-friendliness solutions in the company’s projects, so as to make new development beneficial both for the government in terms of tax revenue and for the local community and residents.
The influx of in-migrants and overseas investors to South Florida means that the year 2023 could be extremely successful for the local real estate market.