South Florida’s high-end real estate market is hotter than ever. But the developers behind some of the region’s most coveted luxury estates are taking a step back. Despite unprecedented demand for ultra-luxury properties, figures like renowned developer Glaser, known for building sprawling estates with tennis courts, theaters, and staff quarters, are halting new construction projects. It raises a critical question: Why aren’t developers building in a market that is practically begging for more?
The bottleneck is not in demand — it’s in supply. While the region’s demand for luxurious homes has surged since the pandemic, driven by a wave of wealthy buyers migrating to South Florida, the challenges of building have grown insurmountable for many developers.
The Struggle with Skyrocketing Costs
For developers like Matthew Martinez of Beacon Hill Property Group, one of the biggest obstacles is the skyrocketing cost of land. Martinez’s waterfront property in Coral Gables, initially purchased for $4 million in 2021, would now fetch $7-$8 million. Throughout South Florida, land prices have surged by over 80%, and construction costs have followed suit, more than doubling in some cases. According to Martinez, building a waterfront home now costs developers over $1,000 per square foot, with luxury projects climbing to as much as $1,500 per square foot.
Moreover, shortages in both construction materials and labor — exacerbated by the pandemic — are inflating prices, while the demand for contractors keeps them in high demand, making project timelines even longer. The result? Projects are taking years, not months, to complete.
Lengthening Timelines Add to the Strain
As construction costs rise, so do development timelines. Glaser, who once built homes in as little as nine months, now faces a construction process that spans one to two years. Delays in permits and local regulations only add to the challenge, with some developers experiencing a months-long wait for approvals.
“It’s a three-year process, and that’s if you’re efficient,” Martinez explains. And that’s when things go smoothly. The stress of delays and added costs has led many luxury buyers to abandon the idea of building and opt for existing homes — even if they come with a premium price tag.
The Demand for Speed: Luxury Buyers Pay More to Avoid the Hassle
In today’s market, time has become a currency. Top agents like Dina Goldentayer of Douglas Elliman note that wealthy buyers are willing to pay a higher price to avoid the time-consuming, and often frustrating, process of new construction. For example, Victoria and David Beckham’s recent $72.3 million purchase of a waterfront mansion in Miami set a price record. This transaction shows how deep-pocketed buyers, fed up with the wait, are opting to buy completed homes at premium prices rather than endure the building process themselves.
“The desire to not build is fueling the top end of the market,” says Goldentayer. “Time has become more valuable than money.”
Quality Control and Customization: The Ultra-Luxury Standard
Luxury buyers, many of whom are migrating from cities like New York, Chicago, and California, have a sophisticated set of expectations that far exceed what traditional spec homes offer. Developers like Glaser and Manny Angelo Varas of MV Group USA understand this, striving to create homes that meet the highest standards, from custom finishes to meticulous design.
However, not every developer is equipped to meet the demands of the ultra-wealthy. Building for billionaires requires precision, time, and significant resources, and many are choosing renovations over new builds for a quicker turnaround. Glaser himself recently sold a renovated Palm Beach mansion for $38 million, demonstrating the viability of renovation in a market where new construction is increasingly out of reach.
The Long-Term Outlook
Despite the obstacles, some developers are pushing forward. They continue to build, albeit cautiously, understanding that meeting the unique needs of South Florida’s wealthiest clients requires more than just financial investment — it takes dedication, patience, and a deep understanding of what these elite buyers want. As the market continues to evolve, the scarcity of new luxury homes is driving up prices, making existing estates more valuable than ever. And as long as the bottleneck persists, these homes will remain a prized commodity.
In the end, developers like Glaser and Martinez may not be building as much, but their existing inventory, coupled with the premium placed on avoiding the grueling process of new construction, is positioning them at the forefront of South Florida’s luxury market.
