Is it possible that Florida might snap off from the rest of the country and fall into the sea under the weight of the current condominium boom there? Or maybe become its own island?
Probably not. But that hypothesis does illustrate the strength—or craziness—of the condo market in South
According to CondoVultures, a consulting and publishing firm, that makes 139 high-rises that are currently under construction or set to rise from the ashes of the South Florida condo fizzle of 2007.
As of mid-June, some 18,500 units are planned for the tri-county region, which consists of coastal Miami-Dade, Broward and Palm Beach.
CondoVultures reports that one project has been finished and 22 others are under construction. The rest are still on paper.
Much of the demand for apartments in the sun-draped region is coming from Central and South America, as cash-rich investors from Venezuela, Brazil, Argentina and Chile flock to the region in search of new ways to safely place money and increase wealth.
In most cases, Latin Americans are either paying cash for their apartments or financing their purchases through banks with which they are already familiar.
To accommodate the increased banking demand from foreigner investors, both the Banco de Credito e Inversiones and Banco Itau Europa International have taken more office and storefront space, according to Don Cartwright of Jones Land LaSalle and the leasing agent where the two institutions are housed.
BCI has some 22,500 square feet in the Southeast Financial Center, the largest office tower in Florida at 1.225 million feet, and ITAU has about 38,100 feet. Just this year, BCI doubled its footprint in the building, which is located in the heart of Miami central business district, with the purchase of City National Bank.
Cartwright says the banks are clear examples of how the increase of Latin American investment in South Florida has sparked economic growth. "The cranes are back up, and the residential and commercial markets are seeing vast improvements," he reports.
Lew Sichelman is an independent journalist who has been covering the housing and mortgage markets for more than 40 years.
