3 Reasons The Strong Dollar Doesn't Scare the Condo Market
Though foreign buyers have been a mainstay of condo market growth in Downtown Miami, the current strong dollar's not going to crimp the market. IRR principal Anthony Graziano and Miami DDA executive director Alyce Robertson tell us three reasons why.
1. Domestic Buyers Will Take Up The Slack
Now's actually a good time to be a domestic buyer in the Downtown Miami residential market, Anthony tells us. With less competition from foreign all-cash buyers, domestic buyers will likely come off the sidelines in lockstep with the strengthening dollar.
2. The Risk of Overbuilding is Lessening
Anthony says that two years of price appreciation and skyrocketing land values have brought the Downtown market to equilibrium, regardless of what overseas buyers do. Developers will take pause, approaching new deals with caution as current land pricing and construction costs squeeze development margins.
3. Miami's Still an International Destination
Downtown is still an international draw as a global hub for commerce, arts and culture, and innovation, notes Alyce. Short-term currency movements aren't going to change that. Both public and private investment put in place during this market cycle will fuel its growth as a global destination for decades to come, she adds.