While Miami’s luxury resale market faces price declines, the pre-construction segment is showing notable resilience, highlighting a clear split in the market, according to local expert Sep Niakan. In a recent interview, Niakan discussed how new development sales are operating in a different environment from existing inventory.
“Luxury pre construction is doing fairly well, and then certain projects are just blowing it out of the water,” said Niakan, owner and broker of Blackbook Properties with 20 years of experience in Miami’s coastal luxury market. “The premium luxury and ultra luxury product is selling very well.”
While the luxury resale market has seen prices drop by up to 10% on an apples-to-apples basis, pre-construction projects are maintaining or even increasing prices, creating a rare market split.
Niakan explained that the resilience of Miami’s pre-construction market lies in its ability to offer products that stand apart from existing inventory. Unlike resale properties, these developments are defined by their uniqueness, buyers are drawn to the fact that what’s being offered simply can’t be found elsewhere in the current market. This exclusivity allows developers to maintain firm pricing, even as other sectors experience softening demand.
He added that scarcity continues to drive premium valuations, particularly for high-demand layouts in luxury developments. Properties like corner units in top-tier projects appeal to buyers who value both rarity and immediacy. Beyond design and location, Niakan emphasized that innovation itself fuels this market segment, many of the products available in pre-construction don’t yet exist in the built environment, giving them a forward-looking appeal and preserving their value advantage over resale listings.
Standout Performance Examples
Niakan pointed to specific projects performing well: “You have the Mandarin Oriental and Brickell key. Mandarin Oriental residences Miami and Brickell key. That property is doing extraordinarily well. And it’s a combination of, it’s a tribute to its location, it’s a tribute to the team, it’s tribute to the name, the brand.”
These ultra-luxury developments are achieving starting prices of $3 million, $5 million, and $10 million, representing a substantial premium over existing inventory while maintaining strong sales.
Data Visibility Challenges
The pre-construction market operates mostly outside traditional data tracking systems. “I don’t have actual statistics of pre con sales that I could share with you, because those are actually all, let’s say 90, 98% of it is not on the MLS. It’s not publicly shared,” Niakan said.
This lack of public data means a significant portion of Miami’s luxury market activity is not visible to conventional analysis, which can lead to misunderstandings about the overall market.
Investment Implications
The split between pre-construction and resale markets creates different opportunities and risks for investors. While resale properties may offer room for negotiation in a buyer’s market, pre-construction provides access to unique offerings not available in the current inventory.
Strategic Considerations
For investors, this market split calls for tailored strategies based on investment goals. Those seeking immediate occupancy or established neighborhoods may benefit from pricing flexibility in resale markets, while investors prioritizing new amenities and locations may find value in pre-construction despite higher prices.
Future Outlook
The future of this divergence will likely depend on delivery timelines and whether the unique features that drive pre-construction premiums continue to provide value once projects are completed and enter the resale market.
