Branded Condos in Miami: Supply Is Growing, and Here's What the Buyer Pays

How Much Branded Condo Supply Does Miami Have?

A branded residence is a residential development designed, built or managed in partnership with a recognized firm, whether from the hospitality, fashion, automotive or design world. It offers finishes, services and lifestyle standards associated with that name.

According to a September report from Knight Frank, covered by Bisnow, Miami today has 31 completed branded projects, 42 under construction and 73 in planning. Half of the latter correspond to non-hotel brands. By volume of branded towers, Miami is the second-largest market in the world, behind only Dubai.

With so much preconstruction supply, developers like Key International stress the importance of analyzing the features and differentiating elements of each offering before making an investment decision.

How Much More Do You Pay for the Brand, and What Costs Does It Bring?

When a developer partners with a prestigious brand, the name allows it to charge a premium of up to 30% on the sale price of units. It's a markup the buyer absorbs in exchange for the design, services and backing of the firm. Ricardo Dunin, of North Development, said that if you can't get close to 20% more in price, you shouldn't use the brand.

These figures are testimonials from industry executives on a panel reported by Bisnow, not market data. On the construction side, meeting the standards and finishes the brand requires can account for up to 20% of a project's cost, according to the panelists.

In addition, according to ISG World, amenity spaces have grown 100% since 2020. This is a point worth keeping in mind when estimating the future HOA fees the owner will pay.

What We Review Before Reserving a Branded Condo

Before signing a reservation on a preconstruction project of this kind, at PFS Realty we suggest carefully reviewing three key documents to protect your investment: the agreement between the developer and the brand, the estimate of common expenses, and the rental regulations.

In that preliminary review, we analyze these points:

• License terms: how long the contract with the brand lasts and under what conditions the building will keep its name.
• Rental rules: how flexible the regulations are if you want to rent out the property — that is, whether it allows short-term rentals by the day or only medium- and long-term leases.
• Fixed cost structure: the projection of HOA fees to maintain the amenities and brand standards without surprises.
• Delivery specifications: what finishes, appliances or furnishings are actually included in the contract price.