The Luxury Real Estate Market Remains Steady in Miami

March 10, 2016

Across South Florida the luxury market remains steady in Miami. While downtown Miami has been impacted by a surge in inventory, the demand for the million plus market remains strong with prices continuing to appreciate across the board. Overall, we’ve seen an acceleration in the ultra luxury market while mid-tier sales have slowed.  The Miami real estate market remains healthy.

With signature properties in the works including Rem Koolhaus’s Park Grove, and Carlos Ott’s highly anticipated Muse, 2016 will be an exciting year for luxury. Full service buildings such as Faena House and Porshe Tower are redefining Miami’s skyline and lifestyle. The city reigns as a capital of luxury hi-rise living in the US. Few cities can match what Miami offers in terms of full service buildings.  In the US, the only city that really competes with Miami’s new stock luxury market is New York. Coupled with the weather and strategic location Miami is a preferred US destination for many foreign buyers. Miami’s luxury market has really come into its own in the last few years to become a prime destination for the ultra wealthy. 

Cash is still king in the luxury market representing 52.6% of all sales. This number is down from last year, and if an economic slowdown continues in China, Europe, Russia and South America the number of foreign and cash buyers will possibly decline. The World Bank estimates global growth will be 2.9% in 2016, which is a slight increase from 2.5% in 2015. Much of future luxury real estate will ride on the market conditions and currency valuations against the dollar. That said the surge of buyers from the Northeast continues to be a significant force in Miami, driving the market forward at a steady pace of growth. Overall, luxury sales continue to be healthy as we go into 2016.