Luxury Remains in Rough Market

By
Services for Real Estate Pros with Real Estate Systems, Inc. RESI

The Trump Hollywood and Gansevoort are examples of luxury condos being launched in a stingy real estate market. Of course these condos probably would never have been built, had the builders known what kind of market they’d eventually open into. Condo projects can sometimes take up to half a decade to be built and most condos being launched now were originally planned during economically promising times. However, instead of scrapping the projects, many condo builders have decided to go through with it. This has created a strangely large amount of luxury condos in a real estate market that is far from luxurious.

How will these luxury condos deal with a lackluster real estate market, and are they contributing to the problem of bloated real estate prices and an abundance of inventory in South Florida? It’s hard to tell at this point, but these condos are being offered at prices that can be up to half of what they initially expected. They are also finding that leasing the properties puts them in the affordable range for the middle class. Basically, South Florida is getting luxury condo living for what they would have paid for the average condo just four years ago.

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