S
outh Florida's real estate market saw contrasting trends in 2024. Waterfront homes and new projects experienced record prices, driven by enduring demand. However, the office market slowed down due to high interest rates, which also suppressed multifamily development. Residential brokerages adapted to changes brought about by a landmark settlement in a class action lawsuit against the National Association of Realtors.

    Scandals involving prominent brokers and developers dominated headlines. Brothers Oren and Tal Alexander were arrested on federal sex trafficking charges after being accused of rape in civil lawsuits. Sergio Pino, founder of Century Homebuilders Group, died by suicide when the FBI arrived to arrest him for allegedly trying to murder his estranged wife.

    The office market suffered due to high interest rates, with leasing slowing down and investment sales declining. Multifamily developers and landlords also struggled, with pricing falling and no single-asset purchase reaching $200 million. Some commercial landlords faced financial difficulties, including Raoul Thomas of CGI Merchant Group, who lost two hotels to lenders.

    The condo market was affected by new legislation, leading to increased costs for living in condo communities. Associations were forced to fund repairs and cover higher insurance costs, prompting some owners to sell. Despite this, developers continued to launch projects, many with brand names or short-term rental flexibility. The retail market performed well, but the restaurant industry saw record turnover due to a challenging year.

    Condo developers secured large construction loans for new projects, including a $668 million package for the Waldorf Astoria Hotel & Residences in downtown Miami. However, some projects faltered and stalled, with buyers suing the developer of the Mandarin Oriental in Boca Raton.