When the recession struck in early 2008, the Atlanta condo market was hit as hard, if not harder, than any other market. The city developed a condo surplus that many thought we might never recover from. Fortunately, this notion has been dispelled as the condo market has come out of the recession with great success. Three major condo towers were sold in 2013 and tower owners report that the existing inventory is all but depleted.
It looks as though this is where the market will begin to plateau, however. Banks are still hesitant to lend money to condo developers given what we went through five years ago, which means that there won’t be any major increases to the inventory any time soon. Upscale apartment towers, especially in Midtown and Buckhead, seem to have drawn most of the multi-family investment interest in past months.
Condo developers are refusing to stop completely, however. Many developers are switching from large towers to smaller, boutique condo building with much fewer residences. Most of the smaller condo developments have between 20 and 30 units and have experienced very strong demand thus far. Perhaps the biggest downside for these types of units is the increased HOA expenses and fees that come along with sharing them amongst fewer neighbors.Share