The 2010s saw a lot of optimism in the ultra-luxury condominium market. As developers used this time to transform many urban skylines, it was a period of great optimism. New York City, Los Angeles and Miami are just a few examples. These luxury condos still exist.
A ultra-luxury condo was built to attract a wealthy buyer. However, this goal is somewhat self-destructive as many people who have millions of dollars for condominiums already own multiple homes. People who truly need affordable housing, or prefer to live in moderate-priced condos, are being pushed out.
In 2018, the cost of a luxury condo in San Francisco was $2,500 per square feet. Manhattan units can be purchased for between $8,000 and $9,000 per square feet. These units can range from 5,000 to 30,000 square feet. A luxury condo at Pompano Beach is available in pre-construction. It can be anywhere from 1,800 to 4,000 square feet. Prices start at $1.5million
The real estate agents at Northern Virginia Home Pro State: “Obviously, ultra-luxury condos prices in excess of a large percentage of the American public. You get the best amenities for your money. Developers and investors are realizing that these amenities do not translate into sales. The more affordable condos are in high demand.
What drove the rise and fall in ultra-luxury condos? This article will address this very question.
Ultra-luxury condos are on the rise
The 2008 Recession is the foundation of any story about ultra-luxury condos. Many foreign investors invested in U.S. realty at the time. There were many cheap real estates available even in urban areas, thanks to the housing crash. Miami luxury condo prices dropped by 50% or more.
These investors prioritized cash buyers. Many people were unable to obtain financing for housing and condos due to the 2008 recession. The prize buyer was a wealthy individual who could afford cash. This market was targeted by condos that were newly built. The fixtures included new and modern technology. Additional amenities were added, including better views, more windows and wrap-around balconies. This was all done to attract multi-millionaires and billionaires who could afford the condo.
Midtown has seen a proliferation of ultra-luxury condos. One example of this is Billionaire’s Row, Midtown Manhattan. Since 2009, Midtown has seen 22,304 condo units. This is more than any other borough, and more than the national average.
This post was written by a real estate expert from the Dotoli group. Josh Dotoli is Paramount Residences #1 Selling Realtor with nine sales in 2021, 3x more sales than any other Realtor selling in the building. The Paramount Residences enjoys a prime beach area location. It is a Ft. Lauderdale oceanfront condo located across from the beach. Looking for a Paramount Condo Fort Lauderdale For Sale? Contact us today!