Cash deposits by foreign buyers put new Miami condo boom on more solid footing

Assuming they’re all built, 41 high-rise condo projects currently proposed for downtown Miami will put 12,100 new units on the market, compared with the 22,200 units built during the 2003-2008 boom, the Wall Street Journal reports.

All told, there are 118 condo towers proposed in the Greater Miami area, and 35 of those are now under construction, the Journal reports, citing Condo Vultures LLC.

Developers are downplaying talk of a bubble, saying much of the demand is fueled by international buyers who typically put down at least 50 percent before closing. Because they’re relying more on buyers’ deposits and less on debt to pay for construction costs, the projects are on more solid footing than speculative towers built during the boom.

About 85 to 90 percent of new condo buyers in the area are international, the Journal reports, citing estimates by Alicia Cervera Lamadrid, managing partner at Cervera Real Estate. Source: wsj.com

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