Miami is in the middle of one of the largest pre-construction condo booms in its history — over 40 active developments with 15,000+ units in the pipeline for 2026. From branded luxury towers to more accessible new developments across Brickell, Edgewater, Wynwood, and beyond, the pre-construction market is generating enormous buyer interest from both residents and international investors.
The opportunity is real. Buyers who understand the process can lock in today's pricing on a property that delivers in 2–4 years, while limiting their capital outlay during construction to staged deposits rather than the full purchase price. Pre-construction buyers in Miami have historically seen 15–40% appreciation between reservation and delivery in strong market cycles.
But the process is completely different from buying a resale property — and buyers who don't understand that difference make expensive mistakes. This guide covers the full process, from reservation to closing, with Miami-specific details throughout.
Pre-construction vs. resale: the key differences
When you buy a resale property, the timeline is compressed: get pre-approved, make an offer, go under contract, close in 30–60 days. Your mortgage, appraisal, and funding all happen in that narrow window.
Pre-construction is fundamentally different. You sign a contract today on a property that may not be completed for 2–4 years. During that entire construction period, you make staged deposits from personal funds — no mortgage required. Only when the building nears completion and the temporary certificate of occupancy (TCO) is about to be issued do you apply for financing to cover the remaining balance.
The contract language is also different — and heavily weighted in the developer's favor. Developers typically have the right to change finishes, floor plans, and certain specifications within defined parameters. This is why having a real estate attorney review every page of the purchase agreement is not optional. It is essential.
The pre-construction process: step by step
Reservation — the lowest prices and most flexibility
During the reservation phase, developers offer units at the lowest pricing of the entire project timeline — often below projected at-delivery market value. Buyers can reserve a preferred unit with a deposit of 10–20% through a reservation agreement. This deposit is typically fully refundable during the reservation period, making it a relatively low-risk way to secure a unit while developers gauge demand. Working with an agent who has developer relationships can get you access to pre-launch or "Friends and Family" pricing before the general public — these early-buyer rounds frequently offer the best pricing in the entire project cycle.
Contract — binding commitment with 15-day protection
Once the developer reaches sufficient reservations, they transition to hard contracts. This is when you sign a binding purchase agreement and the deal becomes official. Your reservation deposit is typically applied toward the purchase price, and you will be required to make an additional deposit bringing your total to 10–20% of the purchase price. Under Florida law, you have a 15-day rescission period after signing during which you can cancel for any reason and receive a full refund of all deposits. After those 15 days, the contract is binding. A real estate attorney should review the full contract and all condo documents before you sign.
Construction deposits — staged payments over the build
As construction progresses, developers require additional deposits at defined milestones. A common structure: 10% at contract, 10% at groundbreaking, 10% at top-off (when the structure reaches its full height), and the remaining 70–80% at closing via mortgage or cash. Ultra-luxury branded residences from names like St. Regis, Cipriani, or Waldorf Astoria may require 40–50% in total deposits spread across more milestones. All deposits are held in Florida-regulated escrow accounts — not in the developer's operating account — and must be returned if the project is not completed.
Financing — apply 6 to 12 months before delivery
You do not need a mortgage during the construction period. Apply for financing 6–12 months before the expected delivery date — early enough that your lender has time to complete condo project approval and underwrite the loan, but not so early that your rate lock expires before closing. Most buyers who finance pre-construction in Miami use jumbo or portfolio loans, as many newly delivered condo buildings are initially "non-warrantable" under Fannie Mae and Freddie Mac guidelines. Lenders who sell mortgages to the agencies often cannot finance these properties — work with a lender experienced in non-warrantable condo financing. Typical maximum LTV for pre-construction condos is 70–75% for domestic buyers; foreign national programs require 30–50% down with rates 1–2% above domestic rates.
Walk-through and closing
When the building's interior is finished, the developer will obtain a Certificate of Occupancy and schedule a walk-through inspection. Review every detail carefully — finishes, appliances, fixtures, and any items specified in your contract. Document any deficiencies in writing before closing. Once you're satisfied, closing is scheduled and the remaining balance (purchase price minus your total deposits, plus closing costs) is due. Closing costs on new construction in Florida typically include doc stamps on the deed, recording fees, title insurance, and any developer transfer fees specified in your contract — budget 2–4% of the purchase price.
How to evaluate a pre-construction project
Not all pre-construction opportunities are equal. Here's how to assess a project before committing:
Developer track record. Has this developer delivered comparable projects before, on time and as specified? Miami has seen developers who couldn't finish what they started. Request a list of the developer's completed projects and visit them. Talk to residents if possible. A developer with a strong track record — Related Group, Swire Properties, Terra, Verzasca — is meaningfully less risky than a first-time developer or a developer with a troubled history.
Construction financing. Has the developer secured a construction loan from a reputable lender? Projects without committed construction financing are at higher risk of delays or cancellation. Ask directly — any reputable developer will confirm their lender.
Reservation absorption. How much of the project is reserved or under contract? A project that is 60–80% reserved has demonstrated market validation that reduces the risk of cancellation. A project that is 20% reserved is still proving itself.
Pricing relative to comparable delivered product. What do comparable units in completed buildings in the same neighborhood trade for today? The pre-construction pricing should reflect a discount to projected delivery pricing — that discount is your return for taking on construction risk and illiquidity during the build period.
HOA budget and reserve projections. Ask for the developer's projected HOA budget for the building. This is often buried in the condo documents but is critical — a building with a $1,200/month HOA has very different economics from one at $400/month. Also review whether reserves are fully funded in the projected budget, given Florida's post-Surfside reserve requirements.
The assignment market: can you sell before closing?
Yes — in many Miami developments, you can sell your pre-construction unit before closing through an assignment of contract. This means you sell your rights under the purchase agreement to a new buyer, typically for a profit if the market has appreciated since you contracted. Assignment policies vary by project — some developers permit assignments with a fee (typically 1–2% of the purchase price), others restrict or prohibit them. Check the assignment clause in your contract carefully before signing if you're purchasing with the intention of assigning rather than closing.
The "almost new" alternative: If the pre-construction timeline or uncertainty doesn't suit you, consider resale condos that are 1–3 years old. These "almost new" units offer modern finishes and amenities without pre-construction risk, and sellers (rather than buyers) typically pay transfer taxes in Florida. You can also verify the building's actual services and quality in operation before you buy — you're not relying on renderings and promises.
Risks to understand clearly
Construction delays. Miami construction projects routinely run 6–18 months beyond the originally projected delivery date. Supply chain disruptions, permitting delays, and contractor issues are all common. Your financial plan should account for the possibility that closing doesn't happen when originally projected.
Market shifts during construction. You're locking in a price today for a property that delivers in 2–4 years. If the market declines significantly during that period, you may close on a unit worth less than you paid. Historically Miami pre-construction buyers have seen appreciation — but 2008 is a reminder that history doesn't guarantee the future.
Changes to the delivered product. Developer contracts typically allow them to make changes to finishes, layouts, and specifications within defined parameters. The renderings and model unit you saw may not exactly match what gets delivered. Review the contract language carefully to understand what changes are permitted and what remedies you have.
Developer default. If a developer goes bankrupt, Florida law protects your deposits (they're in escrow), but recovering them can involve legal proceedings and time. This is why developer financial strength and construction lender quality are critical due diligence items.
Why work with an agent on pre-construction
One of the most common misconceptions about pre-construction in Miami is that you save money by going directly to the developer's sales team. You don't. Developer commissions are set into the project pricing — the commission exists whether you bring an agent or not. If you go unrepresented, the developer's sales team pockets the commission. They work for the developer, not for you.
A good buyer's agent on a pre-construction deal provides access to early-round pricing and pre-launch inventory, negotiating leverage on upgrades and incentives, due diligence on the developer and the contract, and an advocate who represents your interests rather than the developer's sales goals. This costs you nothing out of pocket on a pre-construction purchase.
Frequently asked questions
How much deposit do you need to buy a pre-construction condo in Miami?
Most developers require total deposits of 20–50%, paid in stages. A common structure: 10% at contract, 10% at groundbreaking, 10% at top-off, and 70–80% at closing via mortgage or cash. Ultra-luxury branded residences may require 40–50% in staged deposits.
Are pre-construction deposits in Miami protected?
Yes — under Florida law, all buyer deposits must be held in Florida-regulated escrow accounts and returned if the project is not completed. This protection was strengthened post-2008. However, recovering deposits from a failed project can involve time and legal proceedings, which is why developer financial strength matters.
When do you apply for a mortgage on a pre-construction condo in Miami?
Apply 6–12 months before the expected delivery date. You don't need financing during construction — all deposits come from personal funds. Most pre-construction condos are initially non-warrantable, so work with a lender experienced in jumbo or portfolio loans for new condo buildings. Typical LTV is 70–75% for domestic buyers.
What is the 15-day rescission period?
Under Florida law, pre-construction condo buyers have 15 days after signing the purchase contract to cancel for any reason and receive a full refund of all deposits. This is a statutory right that cannot be waived. After 15 days, the contract is binding and deposits are at risk if you choose not to proceed.
Is pre-construction a good investment in Miami in 2026?
Historically yes — Miami pre-construction buyers have seen 15–40% appreciation between reservation and delivery in strong cycles. In 2026, branded pre-construction under $3M in Brickell and Edgewater is absorbing fastest. The investment case is strongest with credible developers, verified construction financing, and pricing that reflects a meaningful discount to projected delivery comps. Risks include construction delays, market shifts, and product changes — all manageable with proper due diligence.
The bottom line
Pre-construction is one of the most compelling ways to enter Miami's luxury condo market — if you understand the process and do the due diligence. The buyers who do well are the ones who work with experienced agents and attorneys, evaluate developer track records carefully, understand the deposit structure and its implications, and plan their financing timeline correctly. The buyers who get burned are the ones who saw a rendering, fell in love with a lifestyle image, and signed a contract without reading it.
I work with pre-construction buyers across Miami's active developments. If you want to understand the current pipeline, which projects have the strongest developer backing, and what the deposit economics look like for your budget, reach out below.
Interested in pre-construction condos in Miami? Work With Me →
Also read: Miami Luxury Condos: The Buyer's Guide for 2026 →
Also read: How to Evaluate a Miami Condo Building's Financial Health →
