2024 South Florida Construction Predictions – A South Florida Agent Article

The Law offices of John Caravella, P.C. does not own this content. This content was created by the South Florida Agent, and was published on December 7th, 2023.

Will you add inventory in 2024? Can you tell us about your plans?

Diego Bonet: We are delivering Wynwood Haus, a 224-unit multifamily building, at the end of this year and will be leasing up through the majority of 2024. We are working through our other projects, with expected deliveries in 2025 and beyond. Despite the overall macroeconomic uncertainty, we remain bullish on South Florida and the Tampa Bay region and continue looking for new development projects. We believe that 2024 will present an opportunity for new land acquisitions as high interest rates, construction costs, insurance prices and slowing rent growth continue to pressure land prices downward.

Mark Wilson: In 2024, we will commence sales for the second tower of The Ritz-Carlton Residences, Estero Bay, following the successful sellout of the first tower, which we are well on our way to achieving as a result of tremendous demand from sophisticated buyers who are drawn to this spectacular property’s unrivaled location and amenities. The first tower is slated for delivery in 2026.

In addition, we are progressing with the development of Saltleaf on Estero Bay, the master-planned coastal village we’re building from scratch beside Estero Bay. The first aspect of this community to come to life is Saltleaf Golf Preserve, which opened for play recently in November, bringing a brand new 18-hole championship course designed by Raymond Floyd, a 9-hole short course for casual play and a newly transformed clubhouse.

On the single-family side, we have the forthcoming completion of two custom showcase estates on Gordon Drive and Aqua Court in Naples, expected in early 2024, and others later in the year.

Edgardo Defortuna: We have a number of projects in our development pipeline. We plan to commence construction on Ora by Casa Tua in early 2024. Additionally, we’ve recently initiated construction on our short-term rental project in North Miami Beach, Nexo Residences, which is scheduled for delivery in 2026. We also started construction of St. Regis Residences and The Ritz Carlton Residences Pompano Beach.

Michael Troyanovsky: Yes, we have some exciting projects in the pipeline in 2024. We will be expanding La Maré, and we will also be launching 24 luxury townhomes in Victoria Park, Fort Lauderdale. Additionally, we have a couple other projects in the pipeline we will release in early 2024.

Which type of new construction housing (condo, townhome, single family) do you expect to be in most demand in 2024?

Wilson: We’ll continue to see strong demand for various types of new construction housing in 2024. Southwest Florida is increasingly becoming a highly desired destination for luxury residences. There is a growing market for luxury condos, particularly those that offer a wealth of amenities and around-the-clock concierge services. We continue to see rising demand for upscale senior living communities that provide this all-inclusive, high-service lifestyle. Single-family homes have always been extremely popular in Southwest Florida, as exemplified by the success of our developments like Mediterra, and we anticipate that will continue well into 2024 and beyond.

Defortuna: Miami has long been a multicultural hub and there is tremendous demand for new development. Short-term rental condominiums have emerged as one of the most highly sought, new construction properties in South Florida. Our development Nexo Residences in North Miami Beach has attracted buyers from all over the world who seek an opportunity to invest in real estate in the U.S. that allows them to reside here for part or all of the year combined with the flexibility of generating returns by renting out their unit when they aren’t using it. Across the board, new construction condos are in high demand, especially those with thoughtfully designed lifestyle amenities, concierge services and efficient management teams.

Troyanovsky: High-end luxury. Buyers are looking for larger units and townhomes for families.

Bonet: Despite the Fed’s raising of interest rates, the U.S. economy remains robust, especially when compared to that of many other countries. That will continue to lead to an inflow of foreign capital and appreciation of the dollar. South Florida tends to be a large beneficiary of this foreign capital, often through buyers of condominiums. We believe we will continue to see strong demand for condominium “investor” units that allow foreign buyers to invest their capital in the U.S. economy and rent their units. Since a lot of these foreign buyers are cash buyers, this market is also less affected by high interest rates (as opposed to townhomes and single-family homes, which tend to be purchased more by end users and often financed).

Will agents be more important to your plans in 2024? If so, how?

Troyanovsky: Agents will be fundamental to our strategy in 2024, especially those with clients in New York City and South America. Agents are essential for pushing the market forward by expanding the marketplace for their clients. We, as developers, work closely with educating our agents about trends and products so they can go out and deliver them to a broader client range.

Defortuna: Real estate agents are vital to what we do. At Fortune Christie’s International Real Estate, we strive to empower our agents with the best resources and market knowledge available, and they are instrumental to our success and future objectives. From the developer’s perspective, we rely on them to provide information on the needs and wants of the customer.

Wilson: Real estate agents will continue to play an integral role in our plans for 2024 and beyond. We highly value their market knowledge and strong industry relationships, both of which contribute significantly to our ongoing success.

Will the housing inventory shortage drive more development in 2024 and beyond?

Bonet: Absolutely! Despite the challenging environment to get projects off the ground in the short term, in the medium to long term, South Florida (and the U.S. as a whole) is suffering from a housing shortage. We believe that, as the capital markets begin to stabilize, we will see continued housing development.

Troyanovsky: We have big plans to expand and grow our investors for the influx in demand.

Wilson: Yes, the housing inventory shortage is expected to drive increased development in 2024 and beyond. With the growing desire for new construction and the sustained interest in living in Southwest Florida, we anticipate a surge in new developments to meet the high demand in the area.

Defortuna: One of the primary drivers for development in the year ahead will be the increased interest from foreign nationals. Miami has evolved from a tourist destination to a place of residence and business for many, attracting companies and individuals. While some industry experts anticipate a slowdown, I believe the market will continue to thrive, you will just need to be more selective and bring forth developments that satisfy the demand of today’s savvy buyers.