South Florida as a defined region stretches from Palm Beach County, playground of the rich and famous, through Broward County, home to Fort Lauderdale, to Dade County, home to Miami and Miami Beach. This tri-county, 100 mile stretch—The Florida Gold Coast—is nestled between the Atlantic Ocean and the Everglades, and it is the most populated urban area in the state. About 5.4 million residents call this strip of land home year-round. And that’s not counting visitors, vacationers and snowbirds.

Fort Lauderdale, Pompano, Boca Raton, Palm Beach and West Palm Beach are some of the most prestigious area codes in the state, but diverse, metropolitan Miami, the largest city in Florida, and 4th largest city in the United States, dominates the region. A 2009 study by the Union Bank of Switzerland (UBS) ranked Miami the richest city in the United States.

But despite the UBS study, the economic downturn and subsequent recession has hit South Florida hard. Thousands of Miami residents lost jobs and homes. Faced with record unemployment, devalued property and foreclosures, Miami earned Forbes Magazine's 'Most Miserable City' designation in 2011.

Recovery on the Horizon?

Many professionals now feel the recession is behind us, economic markers show slight gains, employment and property values are on the upswing, and in some areas the future is looking bright for recovery. The real estate professionals in South Florida are noticing a difference too.

Liza Mendez of Pedro Realty International is a lifelong resident of South Florida with over 30 years’ experience as a real estate expert. “Miami has an enviable lifestyle,” she states. “Real estate is the backbone of the economy, and the robust performance of the Miami real estate market has strengthened the local economy, creating jobs, increasing spending and helping boost consumer confidence. Our market is certainly ‘post-recession’ following three record sales years and two years of double-digit appreciation.”

Jacky Teplitzky is a top real estate broker at both Douglas Elliman Florida and Douglas Elliman Real Estate in New York City. Teplitzky and her team have sold over one billion dollars between the two markets, and she is encouraged for Florida as she sees a high demand for waterfront property and new development in the Miami area. “Residential real estate is boosting the economy, with new projects that are being built, creating jobs in all sectors,” she says. “We have more cultural activities, plus there are more businesses opening up in Miami.”

Joanna Sherman, branch manager at Coldwell Banker Residential Real Estate-Pinecrest North has 25 years of experience in real estate. “The market is currently very active,” she says. “There is a shortage of inventory versus the demand, so homes are selling quickly, many with multiple offers. The improving economy, an increase in jobs and a robust stock market has helped considerably.” Sherman believes there are still more adjustments to come. She cites interest rates, the economy and the impact of short sales and foreclosures as determining factors still influencing the move towards a stronger post-recession market.

Marlene Katkin of Balistreri Realty is a condominium specialist with 20 years’ experience in the Fort Lauderdale area. Prior to relocating to Florida, she focused on luxury co-ops, rentals and finance in New York. Like Sherman, Katkin sees inventory moving quickly, many with cash sales from international clients. “Home prices have escalated more than condos,” she says. “Banks are not lending freely to condo buyers and this is hurting condo sales,” she explains. “Fort Lauderdale is nowhere near post recession, however, due to lower prices, lower taxes and a rising stock market, people are feeling more comfortable putting their dollars back into the real estate market. South Broward and Dade are well on their way to post-recession prices and activity.”

What's Hot?

Katkin has noted renewed interest in condominiums in south Broward and Dade, while new construction in Fort Lauderdale and Pompano Beach is trending towards townhomes and villas. “Some properties in Dade County are being called ‘townhouse/villas’ but they are in high-rise buildings. Sunny Isles is particularly hot now; most of the old motels have been torn down, and are being replaced with million dollar high-rise buildings, and Hallandale is home to a new condo/hotel. Gated communities at moderate prices are being built in the western part of Broward County, and luxury, multimillion dollar, single family homes are being built and sold up and down the coast.” Katkin finds waterfront property the most expensive and in the shortest supply.

“Condominiums and townhouses combined make up 60 % of our market,” says Mendez. “Due to a lack of developable land, smart growth trends and changes in lifestyle, condo living is increasingly more popular in Miami.”

Mendez believes the historically low housing starts in Miami helped fuel the depletion of inventory. “After sales and prices rebounded, the Miami real estate market faced a severe housing shortage, but new construction developers are now returning to the market. According to our partners at CraneSpotters.com there are currently 180 towers planned/proposed, or under construction in the tri-county area. The bulk of these towers will be built in Miami,” says Mendez.

Teplitzky notes waterfront condos were the most popular among buyers in 2013, and they have retained that edge in 2014. She also sees new interest in developments when architects or “starchitechts” like Dame Zaha Mohammad Hadid, are attached to a specific project. Zaha Hadid is an Iraqi-British architect, and the first woman to receive both the Pritzker and Stirling prizes for architecture. Teplitzky states developers like Jorge Perez and Ugo Colombo are taking a strategic point of view towards new developments, and foreign buyers are paying attention.

Mendez agrees, “Miami, has garnered much attention as a new global city; both foreign and domestic consumers are looking to buy and invest in our area. We continue to see a high percentage of cash sales—about 60%.”

Sherman also sees maximum interest in condominiums, because condos offer security and maintenance, along with the feel of resort living. “Condos are the primary purchase for out-of-country buyers as vacation homes and/or investment properties and the primary method of purchase is cash,” explains Sherman, who also has noticed the tremendous amount of new construction slated for completion over the next twelve to thirty-six months. “The major developers have confidence about the future economy, and all are making construction starts.”

Katkin has found builders are not as interested in constructing high-rises in the Western part of the county but waterfront areas are being rebuilt with high-rises and condos that are selling for millions of dollars. She cites only one current, moderately-priced construction project in Boynton, on the Intracoastal Waterway.

Finding the Balance–Holding the Line

Mendez sees movement towards a more balanced market, with prices currently remaining where they were in 2004. Sherman finds that banks are more conservative now on financing, appraisals and lending policies. “In the heyday of the early 2000’s prices were increasing unrealistically and banks were more liberal,” she states.

Overall, Katkin believes the market is better now than over the last two years and definitely moving back towards normal. The market isn’t experiencing the frenzied state of years past, which most realtors believe was an anomaly.

Teplitzky notes the height of the market in Miami was in 2006. She feels there are more options now, in different price ranges, with expanded areas of development. “Now we have a design district, a midtown, and Edgewater,” she states. She believes prices will continue to trend upwards until at least 2015.

Sherman notes increasing property taxes and homeowners insurance will also push up the cost of living. Bottom line? A Miami lifestyle comes with a price tag.

Where to look for property offering the best return, depends on whether you are buying for a primary or secondary residence or for investment. Beachfront and beach access property will always maintain its value, as will areas closest to the urban core in Miami. Buildings designed by the latest group of high-profile architects are also holding and gaining value. Neighborhoods to the west and south are more moderately priced and better suited for families, and Fort Lauderdale and Pompano Beach may well offer the best bang for the buck in 2014, with older construction, possibly needing modernization, available at half the price of new construction.

The Next New Thing?

Builders, architects, and developers are creating properties with custom features tailored to attract a specific buyer and/or investor. Properties with amenities like five-star spas and gyms, tea rooms, extended terraces and increased parking will be the norm. “The Porsche Building has an elevator that will take you—and your car—to your unit,” says Teplitzky.

Katkin has noticed a trend in new buildings designed for seasonal residents. “They have valet parking, concierge services and full time front desk security. The units are completely furnished and rented out when not owner occupied.” It goes without saying state-of-the-art kitchens and luxurious bathroom are expected, along with breathtaking views. Security remains a high priority, and educated buyers want well-run associations, and full disclosure on dues and fees.

South Florida real estate professionals are excited by future forecasts and predictions. The high-end market will continue to increase in 2014 as demand remains steady; prices are expected to increase at a slower rate over the next two years, while the market continues to normalize and achieve more balance between buyers and sellers. South Florida, particularly Miami, will continue to attract tourists, investors, international business and migration from other states and countries, including Europe, Asia, and Canada. The real estate market in South Florida’s Gold Coast is turning golden once more.

Anne Childers is a freelance writer and a frequent contributor to The South Florida Cooperator.