Miami isn't just a sun-soaked paradise - it's a burgeoning hub for high-end real estate assets and investments. More than the radiant beaches and balmy climate, it is the city's unique blend of luxury living, vibrant culture, and financially rewarding opportunities that have turned it into a magnet for the affluent worldwide.
Miami is hot on the heels of titans like London, New York, Los Angeles, and Hong Kong. Recent data places Miami as the fifth most significant property market globally, with an impressive number of transactions exceeding $10 million annually.
Miami continues to cement itself as the go-to destination for secondary property investments. According to Ines Hegedus-Garcia, Chairman of the Board of MIAMI, the city's global sales remain at the forefront worldwide. "In 2023, Miami's real estate saw purchases from 52 different countries, amounting to $5.1 billion". From billionaire investors to budding entrepreneurs, everyone seems to be drawn to the city's irresistible charm and lucrative prospects.
Miami's is also reaping the rewards of a record increase in local purchasers, specifically from heavily taxed and densely populated areas like New York, California, and New Jersey. This influx of wealth has been the fuel to Miami's real estate boom. The 2024 Wealth Report reveals a staggering 6.5% rise in luxury home prices, outpacing other major U.S. markets.
This growth is largely attributed to a significant migration of residents from high-tax states and corporate relocations over the past two years. This notable influx of individuals and companies from densely populated and heavily taxed regions relocating to Miami have created have pushed the luxury real estate market to further heights. Notable examples include Citadel, a multinational hedge fund managing $57 billion in assets, which moved its headquarters from Chicago to Miami with plans to develop a $1 billion office tower. Additionally, Microsoft has established a Latin America hub in Miami.
As reported in the Wealth Report 2024, “Miami has come on strong as a corporate destination and the culture has become dramatically more sophisticated, which is attracting decision-makers from all over the world,” says Peter Bazeli, Principal and Managing Director at real estate consultancy Weitzman."
Miami's record-breaking transactions and ultra-luxury residential projects include purchases by Jeff Bezos and Ken Griffiin. Last year, Miami saw about 146 luxury residences sell for $10 million. In Q1 2024, there were over 25 listings available at $40M and above. A whole new range of price categories has emerged as the highest asset class are seeking properties in the ultra luxury category.
Florida's zero state income tax and favorable business climate are among the key attractions for investors. Jeff Bezos saved over $600M with his move to Miami. The constant demand for properties, both locally and internationally, ensures a steady growth trajectory for this market, albeit with price calibrations.
Miami's appeal extends to its lifestyle offerings - a vibrant nightlife, an entrepreneurial spirit, gourmet dining, an array of cultural events, abundant sunshine and beaches, and wellness-focused amenities cater to the new residents.
The Partnership non-profit by Ken Griffin and Orlando Bravo among others
Experts predict a continuous rise in demand and migration to Miami. However, the city must also cater to the growing needs of its residents, services and infrastructure.
The Miami Herald revealed that a notable lineup of Miami's business, sports, and civic leaders, featuring billionaires Orlando Bravo and Ken Griffin, have launched a new nonprofit dedicated to fostering prosperity for locals while tackling the city's key challenges. The Partnership aims to leverage Miami's swift rise as a global hub for business, sports, and arts, by crafting a vision for its future and strategies for sustainable growth. The focus will be on improving housing affordability, public transportation, and education.
Miami- a dynamic & global capital
Miami's rise as a global luxury real estate haven is a testament to its captivating allure. With its stunning beauty, dynamic culture, tax advantages, and lucrative capital appreciation, the Magic City truly shines as a beacon for the world's most affluent investors. As the city adapts to meet the needs of a growing, dynamic global capital, the future of Miami's luxury real estate market looks incredibly promising.
The Wealth Report 2024
Compiled by research teams around the world, The Wealth Report is Douglas Elliman and Knight Frank’s flagship thought-leadership publication. Now in its 18th edition, the report has become a highly anticipated document that is considered vital reading for UHNWIs across the globe and their advisors.
Highlighting the issues that matter to UHNWIs, The Wealth Report is the ultimate guide to prime property markets, global wealth distribution, the threats and opportunities for wealth, commercial property investment opportunities, philanthropy and luxury spending trends.
