This city, which has over 5 million inhabitants, has become one of the world’s main tourist destinations (the cruise capital of the world) and one of the main job creation areas in the United States. A true hub between North and South America, over 1,500 companies have established their head offices there. Just behind New York, it is the 2nd largest banking centre in the United States. Other key economic activities such as high-tech and pharmaceutical industries are also developing there and taking part in this fantastic growth. It continues to expand, blessed with exceptional climate conditions (over 300 days of sun per year), and annually attracts nearly 400,000 people who come to “permanently” settle in this region. According to the US Census Bureau projections, if this growth continues, by 2020 Florida should have over 20 million inhabitants and would become one of the most populated states in the United States. By way of a comparison, Switzerland has just 7,500,000 inhabitants and Belgium only 11,000,000. To meet the demands of these new residents and numerous tourists, real estate has experienced an unprecedented boom, forever changing Miami’s appearance. Entire new blocks were created while others were completely renovated. For 10 years, thousands and thousands of apartments have been built and sold without any difficulty. Confronted with this success, the market became extremely speculative. Some buildings were sold entirely to investors who, through “presells”, were putting the apartments back onto the market before the end of construction and making substantial capital gain. This excessive increase of construction work and the rampant speculation are, without a doubt, at the heart of the difficulties the market has been encountering for the last year. Other elements contributed to destabilising the market and making it more of a fence sitter, such as the media’s regular announcements about the creation of a speculative bubble, an major increase in local property taxes and insurance, following the 2005 hurricane season, or the increase of credit interest rates. Is this break healthy? Most of the professionals and civil servants we met seemed to think so. For them, it is important not to miss out on the restart. All admit that the market got carried away and that it is necessary to clean it up. According to Lauris Boulanger, a real estate developer in Miami for the last 25 years: “It is time that professionals regain control. Too many “amateurs” disrupted the rules of the game and generated an unbalance and the rise in costs. Construction costs are going to reduce, which is good for us and for the buyers. Miami has a good foundation. I remain confident for the future.” For the estate agent Eric Harari: “More than 50% of projects will not see the light of day, which is a good thing. Indeed, these projects are, for the main part, poorly located and too expensive. We need to find proper final buyers to win back the true market and work in a better atmosphere.” Sabine Otamendi, a housing negotiator, believes the same: “This crisis appears to be under control. The price for new property remains stable even though the resell prices are dropping. The sales rhythm has become more normal. Quality real estate in Miami remains quite affordable compared to other regions in the world, whilst offering more services.” Aware of the damages a serious real estate crisis could generate in the area, all participants (the authorities and economic actors) mobilise. Florida State works on laws aimed at reducing the financial burden of property taxes and insurance premiums. Real estate developers are offering products that are better adapted to the market and at more competitive prices. For Europeans, with a strong Euro compared to the Dollar and the good trends in the market, now is the moment to capitalise on good deals and investments. As we have seen throughout this article, Florida and Miami do not lack strong points. The region is not only privileged with multiple activities which ensure it with a sustainable development (tourism, multi-sector economy, financial market, strategic geographical position, ...) but it also offers, thanks to one of the world’s best quality of life, an advantageous tax system and many opportunities for all those who still believe that the American dream is something to dream about.
 
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