Jeff Bezos, the founder of Amazon, recently escalated the allure of Miami by purchasing a new luxury home on Indian Creek Island, famously known as 'Billionaire Bunker', for a whopping $90 million, marking it his third acquisition in the area.
This move not only highlights his penchant for elite neighborhoods but also underscores the island's status as a haven for celebrities and business magnates alike, including Tom Brady, Jared Kushner and Ivanka Trump and Carl Icahn.
Indian Creek
Miami's ultra luxury real estate market is witnessing a surge, significantly influenced by high-profile investments such as that of Jeff Bezos. The attention to Indian Creek Island is further magnified by its exclusive amenities, including a private 18-hole championship golf course and stringent security measures, promising unparalleled privacy and safety to its residents.
But, Indian Creek's and Miami's billionaire magnetism didn't begin with Bezos and it wont end with him. Quite the contrary, more will continue coming to Miami, upping each other in a bigger and bolder face off cycle.
Ken Griffin and the first $100M Miami sale
The first $100M Miami sale happened in January 2023 in Coconut Grove when Ken Griffin purchased the Arscht Estate. This sale will be etched in Miami's history and it paved the way for more mega sales. Ken Griffin is no stranger to big sales with capital B. Back in 2015, he purchased two penthouses at the Faena House in Miami Beach for a record-breaking $60 million.
75% growth of millionaires+
The talent and wealth migration of people to Miami turbocharged during Covid. According to a wealth report published in 2023 by Henley & Partners and, a firm specializing in investment migration, Fortune reports that the number of millionaires in West Palm Beach has experienced a staggering 90% increase over the past decade, while Miami has seen a growth of 75%. These figures position both cities among the top four destinations in the United States. Furthermore, Miami boasts the highest concentration of millionaires, centi-millionaires, and billionaires on this coveted list.
This ongoing migration has played a role in maintaining a steady increase in the market for single-family homes. As a result, prices have adjusted after the surge caused by the pandemic, settling into a new normal and establishing higher price echelons.
25 listings for $40M and more
A whole new range of price categories has emerged as the highest asset class are seeking properties worth $40M or more. It is noteworthy that, for the first time ever, there are now over 25 listings available at $40M and above. In comparison, during the same period in 2023, there was only a single listing. Among these listings, there is the 6 bedroom, 12,302 SF penthouse at the Waldorf Astoria in Downtown Miami that is not yet delivered.
Listed at $132,000,000, the massive 18 La Gorce Circle on La Gorce Island in Miami Beach is already under contract. It is an assemblage of parcels covering a total of 124,788 square feet and it is the largest property available in Miami Beach with 650 feet of waterfront.
$100M penthouses
As reported by Bloomberg, in order to meet the demands of these affluent buyers, developers are building head-turning penthouses of $100M or more. One such development, the Ritz Carlton, South Beach Residences, is currently being built and features an extravagant penthouse priced at $125 million. The Shore Club Private Collection, a penthouse spanning 10,500 square feet with a private rooftop pool, is under contract for over $120 million, which is more than $11,000/SF and Fisher Island made headlines with the sale of two extravagant penthouses being developed by Related Group for $150 million. Not to be undone is The Rosewood Residences at The Raleigh, with a penthouse priced at $150 million being designed by Peter Marino.
Developer Michal Shvo is rebranding the Art Deco strip on which he will construct The Rosewood Residences as "Billionaires Beach".
Miami's magnet
“Miami’s lifestyle and economic benefits are second to none,” MIAMI Chairman of the Board Gus Fonte... “The world is in love with Miami and you see it in the international migration data. When you have a market full of multiple offers and record-high housing wealth, the best choice is to pick a proven market, a region that has appreciated for 12 years and is ranked No. 1 in the U.S. in price appreciation.”
Bigger and bolder homes are being listed and sold. These mega estates are establishing benchmarks, driving prices further for trophy condos and single-family homes. In fact, “In the single-family market, the robust demand and more home listings provide a healthy springboard for the seasonal spring market upswing,” MIAMI REALTORS® Chief Economist Gay Cororaton ... “Single-Family home prices amazing continue to appreciate at a double-digit price pace in Miami-Dade County through Martin County, reflecting the housing market’s strength, underpinned by strong job growth and a rising population. More new home listings give buyers more choices at this more competitive time of the market.”
The spillover effect of these high net worth class is far reaching. Family offices have been created, private airplanes are being bought and registered. Mega yacht sales have been supercharged. The demand for private schools exceeds the available supply. Art Basel, each year bigger than the previous one, continues to solidify Miami's status as a top-tier destination. The Formula 1 Grand Prix returns every year. In addition to that, the newest sensation in town is Lionel Messi, a billionaire and World Cup-winning soccer player. Top billing and impossible-to-get-in restaurants seem to open on every corner as well as private clubs.
Private clubs price and demand surge
As reported by Financial Times, Luxury golf clubs in south Florida have begun charging high six- and seven-figure joining fees as a pandemic-driven influx of wealthy Americans drives demand for tee times to previously unseen heights.
Top clubs in the Miami area have doubled or tripled their membership fees since 2020, according to documents and interviews with industry members. For example, membership at La Gorce Country Club is now $700,000, up 250% from Pre-Covid era. The pandemic saw a flood of rich New Yorkers and Californians moving to Florida, seeking freedom from harsh lockdowns and income tax, as well as warmer winter weather. The fees have not only experienced a significant surge, but there is also a considerable backlog of individuals waiting.
Davos on South Beach
In February, The Future Investment Initiative Conference (FII) took place in Miami. You may not have been aware of this 36 hour elite conference that brought together billionaires, CEOs managing assets upwards of $10 trillion and celebrities. Nicknamed “Davos on South Beach” this event has become the foremost platform for accessing Saudi Arabia's immense wealth.
Tax, temperature and titans
Florida does not impose a state income tax, meaning there is no state capital gains tax either. While any earnings from investments are still subject to the federal capital gains tax, you are not required to pay any capital gains taxes to the state of Florida. There is neither an estate tax.
According to a CNBC report, Bezos will be able to save more than $600 million by relocating to Miami.
Taxes, business climate, entrepreneurship, weather and lifestyle are drivers for these UHNW individuals. Many have told us that they have a greater sense of security in Miami. They have the freedom to enjoy dinner without relying on their bodyguards or looking over their shoulders. Quality of life is, after all, a life of quality.
Many of these new residents intend to make Miami as their permanent home. Even those who do not plan to live here long-term still purchase and are purchasing properties because they have a strong belief in Miami's continued potential, trajectory and staying power. And many are joining their ranks.
