Luxury investment properties
Miami is a prime location for luxury real estate investment, attracting high-net-worth individuals from around the world. According to a 2021 report by Knight Frank, Miami ranks as the seventh most important city for ultra-high-net-worth individuals in terms of wealth creation and preservation.
Luxury real estate in Miami has seen steady growth over the past decade, with prices continuing to rise. According to a report by Douglas Elliman, the average sales price for luxury condominiums in Miami Beach was $5.5 million in the fourth quarter of 2020, representing a 28.5% increase year-over-year.
Moreover, Miami’s luxury real estate market is poised for even further growth. A report by Savills World Research predicts that Miami will be among the fastest-growing luxury real estate markets in the world over the next decade, with a projected 43% increase in prime property prices by 2030.
One of the factors contributing to Miami’s appeal for luxury real estate investment is its favorable tax environment. Florida has no state income tax, making it an attractive location for high-net-worth individuals seeking to minimize their tax burden.
Another factor driving demand for luxury real estate in Miami is the city’s strong cultural and economic ties to Latin America. According to a report by Mansion Global, Latin American buyers accounted for 25% of all luxury real estate purchases in Miami in 2019, with a preference for waterfront properties.
In addition, Miami’s luxury real estate market is supported by a strong and growing economy. According to the Miami Downtown Development Authority, the city’s economy is projected to grow at an annual rate of 2.8% through 2025, driven by a diverse range of industries including tourism, finance, and healthcare.
Overall, Miami’s luxury real estate market presents an attractive investment opportunity for high-net-worth individuals seeking to diversify their portfolios. With steady growth, favorable tax policies, and strong cultural and economic ties to Latin America, Miami is poised for further growth in the years to come.
Sources:
Knight Frank (2021). Wealth Report 2021.
Douglas Elliman (2020). Q4 2020 Miami Beach/South Beach Market Report.
Savills World Research (2019). Spotlight: Miami.
Mansion Global (2019). Why Miami’s Luxury Real Estate Market Is So Strong.
Miami Downtown Development Authority (2021). Miami’s Economy.