New Construction in Delray Beach: Recent Sales, Prices, and What's Happening Around Atlantic Avenue

Delray Beach has seen a wave of new construction activity over the past few years that's reshaping the market in ways I haven't seen since I started in this business. The downtown Atlantic Avenue corridor, in particular, is transforming into something close to a mini-Boca, but with its own character and price points that still offer real value for buyers and investors who know where to look.

I get calls every week from buyers asking the same question: "Ryan, what's actually being built in Delray Beach right now, and is it worth buying?" So I put this post together to answer that question with real numbers, real projects, and my honest take on where the market is headed.

Whether you're looking at a luxury townhome two blocks from Atlantic Avenue, a single-family estate in a gated enclave, or a beachside investment property, here's what you need to know about new construction in Delray Beach right now.

Grove Estates — The Gold Standard for Downtown New Construction

Let me start with what I consider the most impressive new construction project in downtown Delray Beach: Grove Estates. Developed by Azure Development, this is the only gated single-family home community located within downtown Delray Beach. It sits just west of Swinton Avenue on Lake Ida Road, literally steps from Atlantic Avenue and the Old School Square Historic District. If you know the area, you know this location is about as prime as it gets.

Grove Estates consists of just nine luxury residences, and that scarcity is part of what makes it so special. Buyers can choose between two floor plans (Serenity or Oasis) and two architectural styles (Modern or Farmhouse), with extensive customization options for finishes and materials. These are not production homes. They are not semi-custom tract builds. Each residence is built to a bespoke standard, with the kind of attention to detail you would expect from a custom home builder, not a volume developer.

What makes Grove Estates different from other new construction. The architectural quality here is a step above. The Modern plans feature clean horizontal lines, deep overhangs, expansive glass, and an indoor-outdoor flow that is genuinely thoughtful. The Farmhouse plans offer a more classic Delray Beach aesthetic with board-and-batten siding, metal roof accents, and generous covered porches. Both styles sit on generous lots for downtown Delray Beach — we are talking about homes that average around 5,300 square feet of total living space on lots that allow for real yards, private pools, and landscaped outdoor living areas. That combination of square footage, lot size, and downtown walkability is essentially impossible to find in any other new development in the city right now.

Recent sales data: One of the standout sales is 310 Grove Place, a 5-bedroom, 7-bathroom home with 5,429 square feet, built in 2026, that sold for $4,850,000 on February 20, 2026. That's roughly $893 per square foot. The community's average listing price sits around $4.8 million, and HOA fees are approximately $725 per month. The Oasis and Serenity floor plans are currently listed in the $5 million range as the community nears completion.

Who is buying here. The buyers at Grove Estates fall into two main categories. First, you have the move-down buyer — empty nesters coming out of a large East Delray Beach or Gulf Stream estate who want something newer, smaller, and more manageable but still luxurious, and who want to be walking distance to Atlantic Avenue. Second, you have the corporate executive or business owner relocating from the Northeast or Midwest who wants a turnkey luxury home in a walkable downtown market. These are sophisticated buyers who have done their homework, and they are choosing Grove Estates because it offers something no other project in Delray Beach does: a gated, single-family, new construction community with a downtown address.

How Grove Estates compares to resale inventory. This is where the numbers get interesting. If you look at resale single-family homes in East Delray Beach and the Historic District — areas within walking distance of Atlantic Avenue — you will find inventory that ranges from $1.5 million to $3.5 million for homes that are generally older (built 1950s through 1990s), on similar lot sizes, but with significantly less square footage and dated finishes. A buyer who is willing to spend $1.5 to $2 million on a resale home then needs to budget another $300,000 to $500,000 for a renovation to bring it anywhere near the standard of a new build. At that point, the math on a $4.8 million new construction home at Grove Estates starts to make more sense for the right buyer. The premium is real, but so is the value of not having to manage a renovation, not having to wonder about the condition of the roof and the AC, and not having to compromise on floor plan and design.

For investors specifically, the Grove Estates resale market is something I am watching closely. When the first few owners decide to sell in 5 to 7 years, the scarcity of the community (only 9 homes) combined with the continued development of the Atlantic Avenue corridor could produce significant appreciation. The question is whether the entry price leaves enough room for that upside.

Magnolia Place — Luxury Townhomes Two Blocks from Atlantic Avenue

Magnolia Place is another project that's been generating serious interest. Built by Seaside Builders at 130 SE 1st Avenue, this is a collection of 10 ultra-luxury townhomes that were completed in February 2025. If you haven't walked through this development yet, I'd recommend it — the quality of construction and the finishes are impressive.

Each unit at Magnolia Place features 3 bedrooms, 3.5 bathrooms, approximately 3,200 to 3,300 total square feet (roughly 2,300 to 2,400 square feet under air conditioning), private pools, and 2-car garages. The architectural style is Key West Coastal, which fits the Delray Beach aesthetic perfectly. Ownership structure is condominium, which is worth noting for buyers who may have preferences about fee simple versus condo ownership.

Pricing breakdown by unit:

• Hibiscus East (176 SE 1st Ave) — $3,250,000
• Hibiscus West (170 SE 1st Ave) — $3,150,000
• Gardenia East (166 SE 1st Ave) — $3,150,000
• Orchid East (156 SE 1st Ave) — $3,050,000
• Gardenia West (160 SE 1st Ave) — $2,950,000

At roughly $1,000 to $1,100 per square foot (depending on how you count total square footage versus air-conditioned space), Magnolia Place sits at a premium compared to resale townhomes in the area. But the premium is justified by the location — two blocks from Atlantic Avenue, a short walk to the beach, and brand-new construction with no deferred maintenance.

The appeal to buyers and investors. For an end-user buyer, Magnolia Place offers a turnkey luxury townhome lifestyle with the lowest possible maintenance burden. You lock the door and walk to dinner. You never have to think about a roof replacement, exterior painting, or landscaping. For an investor, the play is different. The question is not whether the rental market can support a $3,000,000+ townhome as a short-term or seasonal rental — the numbers on that are tight, even in Delray Beach. The real investment thesis is appreciation driven by the continued development of the Atlantic Avenue corridor. As Sundy Village and the other mixed-use projects come online, the walkability premium for properties within two blocks of the Avenue will only increase. If you are buying at Magnolia Place as a long-term hold, the location is the asset, not the unit itself.

What I like about Magnolia Place for investors is the combination of location and scarcity. There are only 10 units, and the downtown Delray Beach townhome market is supply-constrained. As Atlantic Avenue continues to develop with new restaurants, retail, and mixed-use projects, the walkability premium for these units will only increase.

The Atlantic Avenue Corridor — How New Development Is Reshaping Downtown Delray

The area around Atlantic Avenue is where the most transformative development is happening, and it's not just residential. A number of major mixed-use projects are reshaping the downtown corridor and driving up property values in the surrounding neighborhoods. If you are an investor, this corridor is where you should be focusing your attention.

Sundy Village is probably the most significant project underway, and I mean that genuinely. Located at Atlantic Avenue and Swinton Avenue, this seven-acre mixed-use campus by Pebb Capital (designed by Gensler) is the kind of development that changes a neighborhood's character. Phase One is complete as of September 2025, delivering 100,000 square feet of Class A+ office space and 30,000 square feet of retail and dining. Phase One is already 88 percent leased. Tenants like Barcelona Wine Bar, Double Knot, Maman, and Delray Beach Craft Brewing are opening throughout 2026. Phase Two will add 79,141 square feet of office space and a 165-space parking garage, with full completion projected for late 2026 to early 2027. The historic Sundy House restoration is also underway.

What Sundy Village means for property values is straightforward: when you add world-class office space, destination dining, and retail to a downtown corridor that already had strong bones, you create a multiplier effect on surrounding real estate. The blocks between Swinton Avenue and the beach, and between Atlantic Avenue and Lake Ida Road, are going to see the most benefit. Properties within a five-minute walk of Sundy Village are already trading at a premium, and I expect that premium to widen as the project reaches full occupancy.

Pierre Delray II is another project to watch. This is a 3-story Class A mixed-use building at 298 East Atlantic Avenue with ground-floor retail. The permit was issued in July 2025, and completion is targeted for 2027. It's a relatively small project, but it's on Atlantic Avenue itself, and any new Class A retail and office space on the Ave is a positive signal for the market.

Ónix Delray Beach is a 26-unit luxury condo project located at 318 SE 5th Avenue, three blocks from Atlantic Avenue. Pricing starts at approximately $1.3 million, and sales launched in May 2025 with over 30 percent already committed as of vertical construction start. Targeted delivery is Q4 2026. This is the most significant new condo development in downtown Delray in years, and it's being represented by Douglas Elliman, which tells you the price point they're targeting. Units range from roughly 1,400 to 2,000 square feet, with 2-bedroom and 3-bedroom layouts. At roughly $1,089 to $1,649 per square foot, Ónix is pricing at a level that reflects the reality of the downtown market.

The Link Condominiums is a boutique condo project in the central district near Atlantic Avenue with plans currently under review. And the 109 SE 5th Avenue office-to-condo conversion received approval in February 2026 for 26 luxury units, with delivery expected in late 2027 to early 2028.

The ripple effect on surrounding neighborhoods. What does all this development mean for property values? In short, the ripple effect is real. Neighborhoods within walking distance of Atlantic Avenue are seeing appreciation that outpaces the broader Delray Beach market. The Historic District, the areas just west of Swinton Avenue, and the streets between Atlantic Avenue and Lake Ida Road are all benefiting from the new construction pipeline. I am seeing resale properties in these areas appreciate at a rate that is roughly 3 to 5 percent higher than comparable properties in areas that are not within walking distance of the Ave.

What investors should know about buying near the Ave. Proximity to Atlantic Avenue commands a premium, and that premium is widening. A property that is two blocks from the Avenue is worth meaningfully more than a similar property that is six blocks away. The walkability score of a property is now one of the strongest predictors of appreciation in Delray Beach. If you are buying a resale property as an investment, pay attention to the exact distance to Atlantic Avenue. A property at 1st Avenue is not the same as a property at 4th Avenue, and the pricing should reflect that.

For a deeper look at the neighborhoods benefiting from this development, check out our complete guide to East Delray Beach.

Beachside New Construction — The $5 Million+ Duet Market

The beachside market in Delray Beach operates under its own set of rules. New construction near the water commands a premium that's separate from the downtown market, and the buyer profile is different too. We're talking about a different caliber of buyer altogether.

One of the trends I've been tracking closely is the luxury townhome and duet market near the beach. These are the projects where two attached or semi-attached units are built on a single lot, each selling for well over $5 million. The beach premium in Delray Beach is real, and new construction near the water is commanding prices that rival anything in Boca Raton or Highland Beach.

The duet/townhome market near the beach. I have been tracking several two-unit new construction buildings in the beachside area where both units have sold over $5 million each. These are not sprawling single-family estates — we are talking about attached or semi-attached units on lots that are typically 5,000 to 7,000 square feet, with each unit offering 3 to 4 bedrooms, 3,000 to 4,000 square feet of living space, private pools, and rooftop terraces. Buyers are paying $5 million and up for a half-duplex. That tells you everything you need to know about the demand for new construction within walking distance of the beach.

Ocean Delray (1901 S Ocean Blvd). This is the first new oceanfront condo development in Delray Beach in over 30 years. It features 19 ultra-luxury residences (15 condos and 4 villas) on 200-plus feet of private beachfront, designed by architect Randall Stofft. Units are priced from approximately $5 million to over $10 million. The fact that this project is happening at all tells you that the market is demanding new product at the highest end. The last oceanfront condo development in Delray Beach was built in the early 1990s. Buyers have been waiting three decades for something new.

1625 Ocean (1625 S Ocean Blvd). Another ultra-luxury oceanfront condo project situated along 120-plus feet of private beachfront in a three-story building. The development neared sellout at its groundbreaking. Current listings are around $7.75 million. This is the kind of demand that tells you the beachside market is undersupplied at the luxury end.

Cache 11 (Palm Trail neighborhood). Located about half a mile from the ocean, this is an exclusive collection of 11 bespoke luxury single-family homes by Stamm Development Group. Homes range from approximately 6,635 to 7,996 square feet with 4 to 5 bedrooms, private pools, and starting prices at $5 million plus. Buyers can choose from Transitional, Modern, or Coastal architectural styles. Delivery is expected in early 2026, with some homes already in contract. This project is significant because it shows that the demand for beachside new construction extends beyond the immediate oceanfront. The Palm Trail neighborhood is walkable to the beach but not on the water, and buyers are still willing to pay $5 million to $7 million for new construction in that location.

How beachside compares to downtown pricing. The difference comes down to lifestyle. Buyers near the beach are prioritizing privacy, water access, and the coastal lifestyle. They are often cash buyers who are less concerned about price per square foot and more concerned about getting exactly what they want. Downtown buyers, on the other hand, are more focused on walkability, dining, and the energy of Atlantic Avenue. The beachside market is trading at a significant premium to downtown — roughly 30 to 50 percent higher on a price-per-square-foot basis for comparable new construction. But the downtown market offers more inventory, more options, and, in my opinion, better value for investors who are looking for appreciation potential.

For investors, the beachside market offers stronger appreciation potential over the long term because the supply of developable land near the water is essentially zero. What's there is what's there, and when a new project comes to market, it's an event. The downtown market offers more inventory and more options, but the beach market offers scarcity and the Florida lifestyle that buyers from out of state are willing to pay a premium for.

If you are looking at new construction in the beach area, work with someone who knows the specific zoning and development regulations. Delray Beach has strict height restrictions and design guidelines near the beach, and not every project that gets proposed actually gets built.

Other Notable New Construction Projects in Delray Beach

Beyond the headline projects, there are several other developments worth watching. These are the projects that may not have the same name recognition as Grove Estates or Magnolia Place, but they are contributing to the overall supply picture and will have an impact on the market.

Fifth Avenue Townhomes — Five luxury fee-simple townhomes under construction at 142-152 SE 5th Avenue, just two blocks from Atlantic Avenue. Designed by architect Randall Stofft, these three-story townhomes range from 2,700 to 4,200 square feet. Pricing starts at $2.8 million with early 2027 delivery. These are fee-simple townhomes with no HOA, which is a significant differentiator from Magnolia Place's condo ownership structure. For buyers who prefer fee-simple ownership and want to avoid monthly HOA fees, this is worth a close look. The no-HOA structure also makes them more attractive to investors who want to maximize cash flow and have more control over the property.

The Maxwell Delray — A proposed 23-unit condo project (some reports say 26) in the Pineapple Grove District, with prices starting above $1 million. The project is undergoing city approvals, with construction potentially beginning in late 2025. Pineapple Grove is one of Delray's most walkable and vibrant neighborhoods, and this project would add meaningful inventory to a supply-constrained market. If it comes to market at the proposed price points, it will compete directly with Ónix Delray Beach and the 109 SE 5th Avenue conversion.

Parks at Delray (Phase 2) — Phase 1 (Savio) completed in May 2025 with 420 luxury apartments renting from $2,100 to $4,500 per month. Phase 2 is now underway by 13th Floor/ANF Group on 25.1 acres. This is a significant rental development that will absorb some of the demand for luxury rentals in the area. For investors in the for-sale market, the impact is indirect but real: when there is ample high-end rental supply, it puts downward pressure on the rental rates that individual investors can command for their properties. On the other hand, it also means that renters who might otherwise be priced out of Delray Beach can stay, which supports the overall economic vitality of the area.

Layton Point by Toll Brothers — A planned 31-residence new construction community by Toll Brothers in the Delray Beach area. This is a significant addition because Toll Brothers brings national name recognition and a well-established sales machine. The project is still in the early stages, but it signals that the national builders see Delray Beach as a market worth investing in.

Recent sales worth noting: 136 SE 1st Avenue, a 3-bedroom, 3.5-bathroom townhome built in 2025 with 2,434 square feet, sold on March 6, 2026 for $3,400,000. That is $1,397 per square foot, and it went under contract in just 4 days. This is a data point that tells you the market is still absorbing new construction at premium prices, and the well-priced, well-located units are not lingering.

New Construction Comparison Table

Market Impact for Investors — How New Construction Is Reshaping Delray Beach

This is the section I want every investor client to read carefully. The impact of new construction on the broader Delray Beach market is significant, and it's not just about the new buildings themselves. New construction is having a ripple effect on existing home values, inventory levels, rental rates, and buyer demographics. Here is my honest, data-driven assessment.

Impact on Existing Home Values

When a new development like Grove Estates or Magnolia Place comes to market at premium prices, it resets the ceiling for the surrounding area. Existing homes in the same neighborhood that might have been valued at $1.5 million start to look like bargains when a new construction townhome down the street is asking $3 million. This "price discovery" effect is real, and it's one of the main reasons I tell sellers in East Delray Beach and the Historic District to pay attention to what's being built nearby.

The data backs this up. Resale homes within walking distance of active new construction projects in Delray Beach are appreciating at a rate roughly 3 to 5 percent higher than comparable properties in areas without nearby new development. The effect is most pronounced in the first 12 to 18 months after a new project breaks ground, as the market adjusts to the new pricing reality.

That said, I want to be realistic with you. The days of double-digit annual appreciation are behind us for now. The market is stabilizing. Delray Beach values doubled between 2012 and 2022, dipped about 5 percent in 2023, and have rebounded roughly 15 percent into early 2026. We are in a period of normalizing appreciation, not a boom. New construction is a tailwind, not a rocket ship.

Impact on the Rental Market

The rental market in Delray Beach remains strong. Average rents sit at approximately $2,382 per month, roughly 46 percent above the national average. The new luxury rental supply from developments like Savio (Phase 1 of Parks at Delray) is absorbing demand at the high end, with units renting from $2,100 to $4,500 per month.

For investors in the for-sale market, the rental dynamic is a double-edged sword. On one hand, the strong rental market supports property values by providing a floor under demand. On the other hand, the influx of new luxury rental supply means that individual investors looking to rent out a condo or townhome face more competition from professionally managed buildings with amenities that individual owners cannot match.

The sweet spot for rental investors in the current market is the single-family home and townhome segment in the $600,000 to $1.2 million range. These properties appeal to the seasonal renter and the corporate relocation market, and they face less direct competition from the luxury apartment towers. If you are looking at new construction as a rental investment, the townhome product at Magnolia Place or Fifth Avenue is more likely to generate strong rental demand than a condo unit in a building where the owner down the hall is also trying to rent their unit.

Appreciation Trends: New Construction vs. Resale

New construction has generally appreciated faster than resale in Delray Beach over the past three years, but the gap is narrowing as new construction prices have climbed. The average price per square foot for resale homes in Delray Beach is approximately $348. New construction averages around $413 per square foot for production/builder homes, with custom homes ranging from $350 to $800 per square foot depending on finishes and complexity.

The real opportunity right now is in the resale market near new construction projects. If you buy an existing home in East Delray Beach or the Historic District, you benefit from the price appreciation driven by nearby new construction without paying the new construction premium. This is the strategy I recommend to most of my investor clients who are looking at the Delray Beach market.

Here is a concrete example. A resale home in the Historic District at $1.8 million that needs some updating might trade at $300 per square foot. A new construction townhome two blocks away at Magnolia Place trades at $1,000+ per square foot. The gap is enormous, and it will narrow over time as the resale home appreciates and the new construction premium stabilizes. The investor who buys the resale home and does a thoughtful renovation is capturing that gap.

Which Areas Offer the Best Investment Potential

Here is my honest ranking of investment opportunities in the Delray Beach new construction market, from most to least attractive:

1. The downtown resale market within walking distance of Atlantic Avenue. This is where I am putting my own attention. The combination of new development (Sundy Village, Pierre Delray II, Ónix) and constrained supply in the Historic District and East Delray Beach creates a strong appreciation tailwind for resale properties. The entry point is high ($1.5 million to $2.5 million for a single-family home), but the risk/reward profile is attractive.

2. The beachside townhome/duet market. If you have the capital and a 5-to-10-year horizon, the beachside new construction market offers scarcity and a lifestyle premium that is hard to replicate. The entry point is steep ($3 million to $5 million+), but the supply constraints near the water mean that well-located properties will appreciate consistently.

3. New construction townhomes within two blocks of the Ave. Projects like Magnolia Place and Fifth Avenue Townhomes offer a turnkey product in a location that will benefit from the Atlantic Avenue development pipeline. The premium is real, but the scarcity of downtown townhome inventory supports the pricing.

4. New construction condos in the $1 million to $2 million range. Projects like Ónix Delray Beach and the Maxwell Delray offer a more accessible entry point, but the condo market has more competition and less scarcity than the single-family and townhome segments. The appreciation potential is there, but it is more dependent on the overall health of the downtown market.

5. New construction single-family in beachside neighborhoods. Projects like Cache 11 offer the highest quality product, but the entry price of $5 million to $8 million+ means that the pool of potential buyers is small. The appreciation potential is real, but the liquidity risk is higher.

Ryan's Honest Take on Where the Market Is Headed

I try to be straightforward with my clients, so here it is: Delray Beach is in the middle of a transformation that is still in its early stages. The downtown area is becoming more walkable, more urban, and more desirable to a wider range of buyers. I expect new construction to continue commanding premiums, but the real opportunity is in the neighborhoods that will benefit from the ripple effects.

The biggest risk I see right now is not a price correction. It is that the market gets ahead of itself on the new construction pricing, and buyers who overpay at the peak of the development cycle see muted appreciation for 3 to 5 years while the market absorbs the new supply. This is why I tell my clients to focus on the resale market near new construction rather than buying new construction at the developer's asking price.

The other risk is that the development pipeline slows down. If interest rates stay elevated or if the city of Delray Beach becomes less accommodating to new development, some of the proposed projects (The Maxwell, Atlantic Crossing) may not get built. That would reduce the supply of new inventory, which would support existing home values, but it would also remove some of the appreciation catalyst that the development pipeline provides.

My honest take: If you are serious about investing in Delray Beach, now is the time to get positioned before the next wave of price increases. The Atlantic Avenue corridor is going to look very different in 2028 than it does today. Sundy Village will be fully operational. Ónix will be delivered and occupied. The office-to-condo conversions will be on the market. And the buyers who are on the sidelines today will be competing for a smaller pool of available properties.

I tell my clients this: buy the neighborhood, not the house. The property values in the areas around Atlantic Avenue are going to appreciate because the neighborhood is getting better, not because of anything you do to the house itself. That is the kind of investment thesis I can get behind.

If you want to talk through the numbers on a specific property or project, call me. I will give you a straight answer based on the data.

New Construction Homes for Sale in Delray Beach

If you're interested in new construction homes in Delray Beach, there are several options available ranging from single-family homes in established communities to luxury estates along the waterfront. New construction offers modern designs, energy efficiency, builder warranties, and resort-style amenities. Prices typically start around $800K for single-family homes and can exceed $2M+ for custom estates. Ryan Parker can help you navigate new construction options and negotiate with builders.