Brickell and Aventura Remain Popular Condo Markets as Inventory Shrinks

Demand for existing rentals and condo inventory in the Brickell and Aventura areas are still booming, as the submarkets are recipients of Miami’s newfound attractiveness.

That’s according to Craig Studnicky, CEO of ISG World, a real estate sales and marketing company in Aventura. He said Brickell has always been the hottest market for condo sales, and one out of every three condo sales between Coconut Grove and Fort Lauderdale has been in Brickell.

ISG World recently released a Brickell area condo market report that indicates the market is red hot.

From January to April, there have already been 1,225 transactions, compared to 2021, which saw a total of 3,615 throughout the entire year. Condo resales from Q1 of this year have doubled compared to Q1 of 2019.

“80% of the people that are moving here are coming here permanently. 20% are getting a second home,” says Studnicky. 

That’s the complete opposite of what it was about 20 years ago, Studnicky says. Short-term retail buildings have seen a huge uptick in demand with 92% of available units sold. 

The average price of properties is now $837,806, compared to Q1 2019 when the price was $436,540.

“I think Miami has all the short-term rentals we need. Miami needs housing, not short-term rentals. We need housing,” Studnicky said. 

Aventura is no exception to such an in-demand market. In this submarket, three-bedroom resales are outselling one-bedrooms. That’s a trend Studnicky says is due to an increase in families in the Aventura area, plus a new trend that started during the pandemic.

“COVID made remote working more than acceptable. In fact, it’s kind of the new thing in the business community,” said Studnicky. “Everybody keeps an extra room for their office, so a one-bedroom doesn’t work. A two-bedroom can be a combination guest room office, I prefer a three-bedroom because then I can have a legitimate guestroom.” 

The report says available units with three or more bedrooms are nearly non-existent.

“If they can’t get those, they’ll get a two-bedroom,” said Studnicky. “The lack of interest in one-bedrooms is everywhere, not just Aventura.” 

The absorption of two and three-bedroom condos doubled in 2021. In 2021, 272 two-bedroom apartments in Aventura were sold compared with 98 in 2019. About 296 three-bedroom apartments were sold in 2021 and 115 condos were sold in 2019.

Studnicky says the demand for existing inventory in Miami, although active, is starting to normalize to what it was about a year ago. He believes available inventory will still be an issue.

“I tell all my real estate agents that you’re going to have to start thinking about alternate markets that you can sell your clients. We’re going to run out of inventory very soon,” said Studnicky. We’re almost out of houses. Houses are going to get very pricey, and the answer is not pre-construction.”

As of April of this year, there was a total of nearly $250 million in gross sales compared with a little over $176 million in 2021.

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