Downtown Chicago Condos

Chicago has a record number of Downtown condo developments either currently being built or scheduled to begin construction soon. Chicago luxury condos start with Trump Tower Chicago on Wacker, 340 On the Park Condos at 340 East Randolph, near Millenium Park and the building project that will change the skyline for the next 100 years, The Chicago Spire, which is slated to have 1,000 luxury condos.

Luxury resale condos in downtown are generally listed at $400 per sq foot. Although now ultra luxury condos such as Trump Tower, Park Place Tower, The Chicago Spire and The Four Seasons are now being sold for upwards of $1,000 per square foot. These are not the homes of your everyday working class guy with a mortgage and two kids in school.

Some talk about a glut of Condos being delivered in 2007 and 2008. Almost 10,000 new condos are scheduled to be delivered in the next couple of years and this will put pressure on price appreciaton, especially for resale units.

Empty nesters from Chicago’s suburbs are now moving downtown and this is where a lot of the downtown demand is coming from. Also, foreign investors from Ireland, Russia, The Netherlands and the Middle East are buying properties they consider bargains. Chicago’s real estate, especially downtown and lakefront are considered undervalued by international standards.

When you’re looking to buy a luxury condo downtown, make certain that you examine the quality of the building and the actual number of owners living in the building. Some buildings have almost 70% renters in them since investors were the main buyers. This could lead to financial problems for the condo association and will put pressure on prices as investors look to sell their property which didn’t pan out well as investments.

The big picture is that Chicago has a robust real estate market and the downtown, lake front and Loop will continue to attract residents looking for diversity, excitement, and to be close to work without long commutes.