Miami's pre-construction condo market has been through a genuine transformation over the past five years. What was once a niche strategy for sophisticated investors — entering a development during the pre-sales phase to benefit from early pricing and construction-period appreciation — has become the dominant way that informed buyers approach Miami's new luxury residential supply. This guide is the most thorough resource I know of for buyers navigating that market in 2025. Whether you are buying your first Miami investment property, relocating from a high-tax state, or managing a global real estate portfolio, this is where to start.
Why 2025 Is a Key Moment to Buy Pre-Construction in Miami
Let me be direct about the timing question, because it comes up in every conversation I have with buyers. 2025 represents an interesting inflection point in the Miami pre-construction cycle — not because prices are low (they are not, relative to historical baselines), but because of where we are in the supply pipeline for the specific category of product that serious buyers want.
The current crop of developments — those now in active pre-sales with delivery windows of 2026 through 2029 — represents a concentration of genuinely exceptional branded product that is unlikely to be replicated in the near term. Developments like The Standard Residences Brickell, Faena Residences Miami, St. Regis Residences Miami, and 888 Brickell by Dolce & Gabbana all happen to be in simultaneous pre-sales. This is not a coincidence — it reflects a pipeline that crystallized during the COVID-era demand surge — but it also means there is a finite window to access all of these projects at pre-completion pricing.
Once these towers deliver and transition to the resale market, the price dynamics shift fundamentally. Pre-construction buyers who locked in pricing two or three years before delivery have historically captured 15–35% appreciation by the time they receive keys in Miami's luxury segment, based on comparable cycles. That window is open right now for the class of 2027–2028 deliveries. It will not be open indefinitely.
Beyond the supply-side argument, Miami's structural drivers — population growth, corporate relocation, the absence of state income tax, and genuine global city status in finance, art, and technology — are not cyclical phenomena. They are structural shifts that underpin long-term demand in a way that supports prices across economic cycles in ways that were not true of previous Miami real estate booms.
How Pre-Construction Works: The Complete Process
If you have not purchased pre-construction in Miami before, understanding the mechanics of the process is essential before you engage with any specific development. The process is straightforward once you understand it, but there are meaningful differences from resale transactions that require preparation.
Phase 1 — Reservation
The first step is securing a specific unit through a reservation agreement accompanied by a reservation deposit — typically $10,000 to $50,000 depending on the development and price tier. This reservation holds your chosen unit (floor, stack, view orientation) while you review the Purchase and Sale Agreement with your attorney. The reservation deposit is generally fully refundable during this review period, giving you a meaningful window to do proper due diligence without irreversible commitment.
The reservation phase is also when unit selection matters most. The best units in any development — the highest floors, the corner stacks with unobstructed water views, the residences with the most favorable orientation — are spoken for earliest. Buyers who engage with a development in the earliest sales phase, often through a buyer's advisor like me who has advance access, have the widest selection. Buyers who arrive late are choosing from what's left.
Phase 2 — Contract and Initial Deposit
Once you have reviewed the Purchase and Sale Agreement and your attorney is satisfied with the terms, you execute the contract and make your initial deposit. At most Miami developments, this deposit is typically 10% of the purchase price, held in a state-regulated escrow account pursuant to Florida's Condominium Act (Chapter 718). Florida's escrow protections for pre-construction buyers are among the strongest of any U.S. state — your deposit funds cannot be accessed by the developer until specific conditions are met.
Phase 3 — Staged Deposits Through Construction
Miami pre-construction typically uses a staged deposit structure spread across construction milestones. A common structure looks like this — though terms vary by development:
- 10% at contract signing — held in escrow
- 10% at groundbreaking — released from escrow to developer upon construction commencement
- 10% at a construction milestone — typically top-off or a specified percentage of completion
- 70% at closing — funded by cash or mortgage at time of unit delivery
This structure means your total capital outlay during construction is typically 20–30% of the purchase price, with the balance funded at closing. For buyers using financing, the mortgage is arranged for the closing phase. For cash buyers, the staged structure preserves liquidity during the construction period.
Phase 4 — Construction Period
During construction — typically 24 to 48 months from groundbreaking for major Miami towers — you receive periodic project updates and can track construction progress. This is also the period during which many pre-construction buyers observe meaningful appreciation in the market value of their contract. In active pre-sales phases, developers may raise prices on remaining inventory as earlier phases sell through, providing visible evidence of appreciation in the asset you already own.
Phase 5 — Closing
When the certificate of occupancy is issued and the building is ready for move-in, buyers are notified to close within a specified window (typically 30–60 days). At closing, you fund the remaining 70% of the purchase price, receive title to the property, and take possession of your residence. If you are financing, your lender funds the mortgage at this point.
Early Access to Miami's Best Pre-Construction Developments
I provide early-stage access to Miami's top developments — often before public launch — through my ONE Sotheby's relationships. Buyer representation is always at no additional cost to you.
Contact Ryan McQuaidMiami Neighborhood Guide: Where to Buy in 2025
Miami's luxury pre-construction market spans several distinct neighborhoods, each with its own character, price dynamics, and buyer profile. Here is my current read on each of the primary markets.
Miami's most dynamic urban neighborhood. Walkable, dense, and increasingly cosmopolitan. Entry points from $600K at branded developments like The Standard. The best story in Miami for buyers who want urban energy with world-class amenities.
The fastest-appreciating waterfront neighborhood in greater Miami. Direct Biscayne Bay frontage, walking distance to Wynwood, and a collection of mid-luxury to luxury condos with dramatic bay and skyline views. The value story of the decade.
Miami's arts and cultural epicenter is maturing into a genuine residential neighborhood. Short-term rental approvals, gallery density, and an F&B scene that rivals any neighborhood in the U.S. make Wynwood compelling for investors and lifestyle buyers alike.
Structurally constrained supply (no new oceanfront land), deep international buyer demand, and iconic brand cachet make Miami Beach the most defensible luxury real estate market in the U.S. Faena, Ella, and Villa 17 represent the current opportunity.
Miami's oldest neighborhood has quietly become one of its most coveted. Tree-canopied streets, waterfront access, boutique dining, and proximity to Coral Gables make the Grove the destination for buyers who want luxury without the density of Brickell.
Emerging as Miami's next ultra-luxury waterfront corridor. Faena Residences and St. Regis Residences are the anchor developments, bringing the highest tier of branded residential product to a location that is minutes from Brickell's urban core but distinctly private in character.
Featured Developments: The 2025 Watch List
Across the developments I represent through Reserve Miami Residences, here are the projects I am most actively discussing with buyers right now — and why each one belongs in a serious buyer's consideration set.
The full collection — 15 active developments across Miami, Fort Lauderdale, and West Palm Beach — is available on the Reserve Miami Residences homepage.
Tax Advantages: The Florida Financial Case
The tax argument for Florida real estate ownership is not subtle, and at the income levels of most luxury buyers in this market, it is genuinely transformative. Let me walk through the key elements.
No State Income Tax
Florida has no state income tax, no state capital gains tax, and no state estate tax. For high-income individuals relocating from California (13.3% top rate), New York (10.9%), Massachusetts (9%), or New Jersey (10.75%), establishing Florida residency can mean annual tax savings well into six figures — and often into seven figures at the very high end. The math is straightforward: for a buyer with $3M in annual income relocating from California, the state income tax savings of establishing Florida residency exceed $390,000 per year. Against those savings, the carrying costs of even a significant Miami condo look modest.
Importantly, tax savings of this magnitude are only available to Florida residents — which requires genuine establishment of domicile, not merely ownership of a property. But for buyers who are genuinely willing to make Miami their primary address, the financial case is exceptionally compelling.
Homestead Exemption
Florida's homestead exemption is one of the most valuable property tax benefits in the United States. Florida primary residents can exempt up to $50,000 from assessed value for property tax purposes ($25,000 for school tax purposes), reducing annual property tax bills materially. Additionally, the Save Our Homes cap limits annual increases in assessed value for homesteaded properties to 3% or the rate of inflation (whichever is lower) — providing long-term protection against rising assessed values as the market appreciates. For buyers who plan to hold a Miami property as a primary residence over many years, the Save Our Homes cap is an increasingly valuable benefit as the market rises.
No Inheritance or Estate Tax at the State Level
Florida imposes no state estate or inheritance tax. For buyers building generational wealth and planning to pass real estate assets to heirs, this is a meaningful structural advantage relative to states that impose their own estate tax on top of federal exposure.
International Buyer Guide: Buying Miami Pre-Construction from Abroad
A substantial share of Miami's luxury pre-construction buyers are international — from Latin America, Europe, Canada, and increasingly from the Middle East and Asia. If you are purchasing from outside the United States, here is what you need to understand about the process.
No Restrictions on Foreign Ownership
There are no restrictions on foreign nationals purchasing Florida real estate. You can purchase in your individual name, through a U.S. or foreign LLC, through a trust, or through various other structures. The optimal structure depends on your specific situation — your residency, the size of your U.S. estate, your estate planning goals, and your tax position. A qualified Florida real estate attorney with international experience is an essential part of your team for any transaction above approximately $500K.
Foreign National Financing
Financing is available to qualified international buyers through U.S. lenders with foreign national programs. These programs typically require:
- 30–40% down payment (vs. 20% for U.S. residents)
- Documentation of international income and assets (bank statements, tax returns where applicable)
- U.S. credit history is helpful but not always required for larger down payment programs
- Interest rates generally 0.5–1.5% above conventional U.S. mortgage rates
For pre-construction specifically, financing is arranged at the time of closing rather than at contract — so the mortgage market conditions at delivery (2027–2028) will determine the actual rates available. Many international buyers choose to finance at closing even if they have the cash available, preserving liquidity and maintaining exposure to potential rate improvements.
Wire Transfers and Escrow
Pre-construction deposit payments are made via international wire transfer to a Florida-licensed escrow account. Florida's escrow protections under Chapter 718 of the Florida Statutes are robust — deposits cannot be released to the developer without specific statutory conditions being met. All deposit funds are held in FDIC-insured accounts. Wire transfer instructions should always be verified directly with your attorney and the escrow company — wire fraud is a real risk in real estate transactions globally, and verification protocols are essential.
FIRPTA and Estate Tax Structuring
Foreign nationals selling U.S. real property are subject to FIRPTA withholding of 15% of gross sale price on any eventual sale. This is a withholding mechanism, not a final tax — the actual tax liability is determined by your U.S. taxable gain — but it requires attention at time of sale. Additionally, U.S.-sited assets owned by foreign nationals are subject to U.S. federal estate tax at rates up to 40%, with a very small exemption for non-U.S. domiciliaries. Ownership through certain LLC or trust structures can eliminate this exposure. These are structural decisions made at the time of purchase, which is why engaging your attorney before signing anything is essential.
Common Mistakes First-Time Pre-Construction Buyers Make
- 01Waiting for the "right time": Pre-construction pricing moves in one direction during active development cycles. The best time to buy is when you have made your decision, not when you feel certain the market is at its lowest point.
- 02Not reviewing contracts with an attorney: Pre-construction Purchase and Sale Agreements are developer-drafted documents that heavily favor the developer. An experienced Florida real estate attorney is not a luxury — it is a necessity.
- 03Choosing a unit based on renderings alone: Floor plan analysis — stack location, ceiling heights, view corridors, proximity to elevators and mechanical spaces — matters enormously for livability and resale value. This is where an experienced advisor adds significant value.
- 04Underestimating carrying costs: HOA fees, property taxes, insurance (particularly hurricane/wind coverage), and financing costs all need to be modeled carefully, especially for investment properties. A unit that cash-flows attractively before HOA fees may look different after them.
- 05Buying without comparable analysis: The strongest pre-construction buyers understand what comparable finished product trades at in the same building, the same neighborhood, and across competing developments. Without this context, you cannot evaluate whether a price is compelling or overpriced.
- 06Going direct to the developer sales team: Developer sales representatives work for the developer. Their job is to sell units at the highest prices with the terms most favorable to the developer. A buyer's agent represents your interests exclusively — and at pre-construction, their commission is paid by the developer, not you.
How to Get Exclusive Access and VIP Pricing Through a Sotheby's Advisor
The phrase "VIP pricing" gets thrown around loosely in the pre-construction world. Let me be precise about what it actually means and how it works.
Most major Miami developments have a structured pre-launch phase before public sales open, during which a developer makes a limited number of units available at "launch pricing" — pricing set at or slightly below where they expect the public market to be, designed to generate early sales momentum and demonstrate market depth to construction lenders. Access to this phase is exclusively through developer-approved brokerages.
As a Global Real Estate Advisor at ONE Sotheby's International Realty — the developer-preferred brokerage for most of Miami's major luxury new developments — I have pre-launch relationships with the sales teams across The Standard, Faena, St. Regis, 888 Brickell, and the other projects in the Reserve Miami Residences collection. That means my buyers have access to:
- Pre-launch pricing before public release (historically the most competitive pricing in any development's lifecycle)
- First selection of available units, floors, and stacks before inventory is publicly listed
- Direct relationships with developer sales directors rather than general inquiry queues
- Accurate and current inventory and pricing data rather than what is publicly marketed
- My comparative analysis across all active developments to help you make the best decision for your specific goals
None of this costs you anything extra as a buyer. The developer pays buyer agent commissions as a standard component of their marketing budget. You receive all the benefit of expert representation at zero additional cost.
Read the dedicated buyer's guides for the two most requested developments right now: The Standard Residences Brickell and Faena Residences Miami. Or contact me directly to discuss where you are in your decision process and which development best fits your goals.
Get Exclusive Access — Contact Ryan McQuaid
I provide early access, comparative analysis, and expert buyer representation across Miami's most coveted new developments — at no additional cost to you. International inquiries welcome. Let's talk about your Miami goals.
Schedule Your ConsultationPricing, availability, deposit structures, project timelines, and tax information are subject to change without notice. Tax information is provided for general context only and does not constitute tax or legal advice — consult a qualified tax advisor and Florida real estate attorney for your specific situation. Ryan McQuaid is a licensed Florida real estate agent with ONE Sotheby's International Realty.
Also read: The Standard Residences Brickell — Complete Buyer's Guide 2025 · Faena Residences Miami — Buyer's Guide 2025