Downtown Naples is in the middle of its biggest building wave in years.
Six new luxury developments are rising within a few blocks of Fifth Avenue South, adding roughly 214 residences, ground-floor retail and dining, office space, and even a 120-slip marina to the heart of Old Naples.
As your local Naples real estate team, we get asked constantly which of these buildings is worth watching, which ones still have availability, and what this wave of construction means for anyone shopping for a downtown condo in Naples, FL. Here's where things stand.
Fifth Avenue South Is Getting a Skyline
For decades, downtown Naples has been defined by low-rise charm, boutique storefronts, sidewalk cafes, and a handful of established condo buildings. That's shifting. The current building cycle includes structures ranging from three to fifteen stories, a real departure from the neighborhood's historic scale, concentrated almost entirely within walking distance of Fifth Avenue South's restaurants and galleries.
For buyers, that means an unusual moment: a chance to buy brand-new construction in a walkable, established downtown rather than a newer suburban master-planned community further from the coast.
The Avenue Naples: Fast-Moving and Nearly Gone
The Avenue Naples is the most talked-about project in the current cycle, a limited collection of just 50 residences on Fifth Avenue South. Sales have moved quickly; one sales representative reported roughly $30 million in sales in a single recent month, a pace that reflects just how thin the supply of new downtown inventory really is. If you've been waiting to see the building before deciding, that window is closing fast.
Encore Naples Square Nears the Finish Line
A few blocks over on Third Street South, Encore Naples Square is heading toward completion in the fourth quarter of 2026. Of its 15 units, only four three- and four-bedroom residences remain, ranging from about 3,582 to 4,657 square feet and priced between $3.6 million and $5.9 million. The building's commercial space is already fully leased to a single tenant, which tells you something about how confident retailers are in downtown Naples' foot traffic even before the residences close.
The Huxley and Residences at 5th and 5th Push Into Ultra-Luxury
Two other projects are aiming even higher on price. The Huxley, a three-story building on Eighth Street South just steps from Fifth Avenue, will offer only eight private residences, with pricing starting at $8.5 million. Meanwhile, Residences at 5th and 5th fronts both Fifth Avenue and Fifth Street at ground level and is leaning into lifestyle amenities: a rooftop terrace with an outdoor kitchen, a jacuzzi, a fire pit, and an elevated pool with downtown and Gulf views.
Together, these buildings signal that downtown Naples' newest supply is skewing toward a smaller number of very high-end units rather than a large volume of moderately priced condos, worth knowing before you set expectations on price per square foot.
How This Fits Into Naples' Broader 2026 Market
This downtown building wave is happening against the backdrop of a Naples market that's normalizing after several frantic years. Citywide, homes are taking longer to sell than they did a year ago, and price movement has been mixed: single-family homes have actually posted solid gains near 6-7%, even as the overall market, which includes condos, has cooled and become less competitive than the pandemic-era peak.
That combination, a cooling broader market alongside a sold-out-fast luxury condo cycle downtown, is a good reminder that the Naples market isn't one market at all. Old Naples and Fifth Avenue South are trading on scarcity and location, not on the same supply-and-demand dynamics playing out in outlying single-family neighborhoods. [Internal link suggestion: Naples Home Search / Downtown Naples Listings]
What This Means If You're Buying
If a walkable downtown lifestyle matters more to you than square footage per dollar, these six buildings are worth touring now, not after they've sold out. Ask specifically about remaining unit counts; as Encore Naples Square shows, "under construction" doesn't mean "available." If your budget doesn't stretch to $3 million-plus, it's worth having a candid conversation about resale condos in established Fifth Avenue-area buildings, which can offer a similar location at a very different price point. [Internal link suggestion: New Construction Page]
What This Means If You're Selling
If you own an existing condo within a few blocks of Fifth Avenue South, this new construction wave is actually good news for your listing: it validates continued demand for the neighborhood and gives buyers a price ceiling to compare against. Just be realistic that new-construction amenities, like rooftop pools, marina access, and brand-new mechanicals, are now part of what buyers are comparing your unit to.
Let's Talk About Downtown Naples
Whether you're curious about touring one of these new buildings, weighing new construction against a resale condo, or thinking about listing near Fifth Avenue South while interest is this strong, we're happy to walk through it with you. Call Sky Coastal Realty at (239) 745-8903, no pressure, just straight answers from a local team that knows this stretch of downtown well.