Luxury Condos in Miami Causing 'Real Estate Apartheid'

The luxury condo market in Miami remains strong and an influx of luxury brands promises to keep prices out of reach for most tenants. The wave of luxury condos has had a trickle-down effect as prices of other homes and apartments near the beaches of Miami have also risen. Shari Olefson, who studies the real estate market for industry regulators, sees a separation in the market that may not be going away anytime soon, reports CBS News. "We are experiencing more and more in Miami what I would call almost a real estate apartheid. So we are really seeing a segmentation of social and economic classes by real estate affordability. Folks who are not on the top end of the earnings scale need to say goodbye to living on or near the beach," said Olefson. One new offering at the top end of the scale is the Porsche Design Tower, which features three elevators that carry people and their cars to any of the 60 floors in the building. Sales have been brisk and only eight of the 132 units remain unsold. Prices start at $4M for units and over $30M for penthouses. Other designer name condos in the area include Fendi Chateau and Armani Casa. About 70% of luxury condo buyers in South Florida are foreigners. [CBS]

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