TOP 5 REASONS TO INVEST IN MIAMI’S LUXURY PROPERTY MARKET
Endless summer weather, year-around warm beaches, nature decorated with palm trees and sparkles reflecting the sun on the water combined with cosmopolitan ambiance and Latin-infused culture makes Miami one of the most visited cities in North America. Its exuberant lifestyle, picturesque identity, and the expanding economy are full of options for all tastes which attracts to Miami not only tourists but also businesses and investors from all around the world.
“Miami has emerged as a destination for pioneering restaurants helmed by renowned chefs, top hotels, world-class shopping, art and culture. Miami is now one of the world’s busiest gateway cities and will continue to be a premier destination for business, tourism and real estate investment,” says Edgardo Defortuna, President and CEO of Fortune International Group.
A GLOBAL-MINDED CITY
Besides being a fun-in-the-sun vacation destination, Miami is bursting with its multicultural atmosphere and multilingual community with a big Latin American influence. While this quality can be seen in the quaint cigar shops, cafes, and restaurants that line the streets of Little Havana, it is also an incentive for entrepreneurs, tech start-ups, and multinational firms to settle in Miami. These wildly successful innovators create jobs which promise the continued economic growth of the city. Additionally, Miami is easily accessible by direct flights from most American cities, main European capitals, and is only a stone’s throw away from Central and South America. The beautiful Miami International Airport is the United States’ second busiest international airport and ensures a comfortable traveling experience. “As more jobs are created and Miami’s population continues to grow, demand for the city’s real estate will also increase, particularly in the luxury sector,” comments Edgardo.
Miami is going through a cultural Renaissance where many public and private organizations invest millions of dollars into the arts and cultural growth of the city. Miami Beach hosts several International events such as Art Basel and Design Miami, the Miami Book Fair and the Miami Film Festival which contributes to bringing awareness of its cultural potential connecting visitors and locals through a platform rich in arts and social exchange.
“Global investors are drawn to the Miami lifestyle. In addition to the favorable weather, beaches and prime real estate, the city offers exciting cultural developments, galleries and museums, including the Pérez Art Museum Miami (PAMM), the Patricia and Phillip Frost Museum of Science, and the Adrienne Arsht Center for Performing Arts, along with art and design fairs, including the renowned Art Basel. In addition, the Miami International Airport is the country’s second-busiest airport for international travelers, making global travel easy and convenient,” says Edgardo.
Miami’s rich local culture is complemented by one-of-a-kind, lavish residencies. The decision to invest in a home must include the experience of living in that space. Because Miami is compact, in any given neighborhood, you are only a short drive or walk from the best entertainment, culture, and gastronomy. Defortuna sees the immense values in Miami residences, citing the impressive Missoni Baia. “Missoni Baia is a 57-story luxury condominium rising along Biscayne Bay in Miami’s popular Edgewater neighborhood. Situated at the nexus of Downtown Miami, Wynwood and the Design District, the residential enclave appeals to investors because it’s surrounded by luxury development on all sides, yet is a relative bargain in comparison, with top-of-the-market pricing a fraction of the price of a comparable product on Miami Beach. The building represents the first-ever branded residences from the legendary fashion and design house, Missoni. Vladislav Doronin’s OKO Group is investing more than $700 million into the Edgewater neighborhood, and its Missoni Baia development stands on one of Miami’s last waterfront parcels.”
STABLE DEMAND IN HIGH-END PROPERTIES
Miami’s diverse neighborhoods offer something to fit every taste; hence it will continue to attract wealthy buyers and high-net-worth individuals from all over the world.
“At Missoni Baia, we’ve seen buyers from the U.S., Mexico, Colombia, Brazil, Peru, Italy, Turkey and Russia. Additionally, the implementation of the recent tax reform laws has led to high interest in this project from the U.S. market, particularly from New York City and the surrounding areas,” says Edgardo.
“Along with the investment market, which typically seeks properties that offer the potential for rental income, there’s also a large population of end users searching for a second, third or even fourth home. These buyers are extremely discerning and demand a high-quality product that offers exceptional design, spacious residences, and thoughtful amenities and services. Although Miami’s luxury real estate market has experienced a slowdown, high-end properties are still selling at a healthy pace and we expect the market will continue to appreciate.”
FLEXIBILITY AND AFFORDABILITY
In the past year, high-end Miami investment values have only increased and will continue to do so for the foreseeable future. Because Miami is an up-and-coming city, there are a range of opportunities available to investors. The traditional investment market provides properties with potential for rental income. Loosened credit standards, decreased down payments, and the benefits of not paying income tax make this market especially affordable.
“As for financing, credit standards have loosened and minimum down payments for properties have decreased since the mortgage crisis ended in 2009. Condo loans typically require a 20% down payment.”
The federal tax reform law signed into effect in 2017 has negatively impacted many investors, especially in the high-end market. However, because Florida has no income tax, this law does not apply within the state. This incentive has driven many high-net-worth individuals to buy in Miami, where the prices are affordable, and the neighborhoods are up-and-coming.