Miami Ranks As The Top U.S. Real Estate Market For Ultra-Rich Foreign Buyers Snatching Up Luxury Real Estate, Foreign Investment Tops $7 Billion

Miami has been named the top U.S. real estate market for ultra-rich foreign buyers of luxury real estate. According to the US Ultra Prime Real Estate Report, 26% of American ultra-luxury properties sold to overseas buyers were in Miami, with over 95% of the deals being completed in cash. Miami was followed by Los Angeles at 9% and Manhattan at 3%, with ultra-luxury defined as properties costing in excess of $2,700 SF. 80% of Miami's ultra-luxury property market were sold to overseas buyers while 20% was picked up by domestic buyers. Lifestyle played a major factor in the demand for ultra-luxury real estate in Miami, where residents can enjoy warm weather year round matched with clean, beautiful beaches and world-class dining, shopping, and entertainment. 

"Miami has it all, the weather, the beaches, and now Miami truly has world-class metro city centers," says Demetri Demascus a top-producer at Spectrum Realty Group. "When people travel to Miami now they are blown away with how the city has changed over the past few years. Everyone wants to live here. Compared to other prime real estate markets, ultra-luxury real estate Miami can still be purchased at a discount and the government doesn't punish you with taxes and fees for buying or owning it. Miami can offer safety from the political and economic crisis' in foreign buyers' home countries and there are many security options including high-security luxury condos and gated communities with 24/7 security. Miami also has some of the finest waterfront estates from top architects and builders like Choeff Levy Fischman and Todd Michael Glaser. There is so much variety whether it be a luxury home on North Bay Road, Pine Tree Drive, Star Island, Palm Island or a luxury condo on Fisher Island, in Porsche Design Tower or in One Thousand Museum; all with accessible modern luxuries such as Uber, Uber Eats, world-class dining and entertainment minutes away, there really is no city like it. People are coming from everywhere."  

Foreign investment in South Florida homes totaled over $7 billion, 15,400 residential properties in 2017, up from $6.2 billion, 10,900 properties in 2016. Venezuelans spent the most in Miami-Dade for the second year in a row, while Argentinians spent the most in South Florida accounting for over 15% of overseas purchases. Venezuelans purchased 11%, followed by Canadians and Colombians at 9% and Brazilians at 8%. 51% of the deals were in Miami-Dade county led by Venezuelans at 12%, Argentinians and Brazilians at 9%, Colombians at 5%, French at 4% and Ecuadorians and Italians at 3%. In Broward County Canadians accounted for 12% of foreign purchases, Argentinians accounted for 8% of purchases and Brazil, Colombia and Venezuela accounted for 6% each. In Palm Beach Canadians accounted for 31% of overseas purchases and Brazilians accounted for $15%.

Miami Named The United State's 4th Most Valuable Housing Market By Zillow Report At $864.2 Billion

Miami is fast on the rise and a new Zillow report has named the city the 4th most valuable housing market in the United States with a value of $864.2 billion, up 4.7% year-over-year from 2016. Miami trails Los Angeles which has a market value of $2.7 trillion, New York City which has a market value of $2.6 trillion, and Washington D.C., which has a market value of $996.7 billion. The fastest growing city in 2017 was Columbus, Ohio which rose 15.1% year-over-year to $152.3 billion. The total value of all U.S. homes in 2017 was $31.8 trillion, up 6.5% year-over-year with a total growth of $1.95 trillion. The 10 most valuable metroplitan areas total $11.3 trillion combined, which equates to 36% of the total value of U.S. housing. U.S. renters spent $485.6 billion in 2017, up $4.9 billion year-over-year, with New York City and Los Angeles also reporting the largest rental markets. 

Florida Named Second Fastest Growing State Averaging 900 New Residents Per Day

Florida has been named the second fastest growing state according to the United States Census Bureau, trailing only Texas. Florida added 327,811 new residents between July 1, 2016 and July 1, 2017, about 900 new residents per day. The recent influx of new residents has been bolstered by northern states extreme tax and financial struggles as local and state politicians continue to tighten the tax noose on residents. Florida has no income tax, which has attracted wealthy families and individuals from states like Connecticut, New York, New Jersey, and Massachusetts, amongst others at breakneck speed. Hedge fund big wig Paul Tudor Jones of Tudor Investment Corp. moved from Greenwich, Connecticut to Florida in 2015 after Connecticut passed two of the largest tax increases in history between 2011 and 2015, taking with him over $30 million in income tax revenue. In September 2016 PROFILEmiami reported that Barry Sternlicht, CEO of Starwood Capital Group and chairman of Starwood Property Trust, also fled Connecticut to become a Florida resident. Florida now has 1.1 million more residents than New York and is growing at a pace twenty five times faster than its northern counterpart which added only 13,113 new residents last year despite local claims the state is experiencing great growth. Florida is now the third most populous state behind only California and Texas. Now, Florida once again stands poised to continue and even accelerate growth as the Tax Cuts and Jobs Act of 2017 essentially makes Florida the model on which states should tax their residents. On December 22, 2017, President Donald Trump singed into law the Tax Cuts and Jobs Act of 2017, after the bill was passed by the United States Congress. The bill caps taxpayer's ability to deduct state individual income, sales and property taxes up to a limit of $10,000 starting in 2018. The current deduction was unlimited, allowing high tax states like New York to shift tax revenue from the federal government to state and local government. While residents of these high tax states have for years cautioned local politicians from continuing to hike taxes, taxes have continued to rise and the elimination of the SALT Deduction now makes it much more expensive to live in these states. As the effects of the tax cuts begin to be seen Florida's rapid population rise should be poised to continue through 2018.  

Miami The 9th Most Expensive 1-Bedroom Rental Market In The U.S. According To Zumper's November Report

Miami has come in as the 9th most expensive city to rent a 1-bedroom with a median price of $1,750 according to Zumper's November report. This number reflects a fall from $1,800 median 1-bedroom rent that Miami reported in their October report studying numbers from September. The Zumper report analyzes active listings across 18 metro cities to show the most and least expensive cities and cities with the fastest growing rents. For the entire state of Florida, 1 bedroom state median was around $1,173 in September 2017. 

In the October report, Miami remained the most expensive city to rent in the metro with 1 bedroom units priced at $1,800, down .6% year-over-year. Boca Raton narrowly beat Miami Beach to become the second most expensive city with a median rent of $1,620, up 14.1% year-over-year. Miami Beach fell 3.6% year-over-year, coming in at $1,610. Homestead rent was the cheapest, seeing no change at $1,000 followed by Lauderhill at $1,030 which was up 8.4% and Coral Springs, which was down .9% at $1,140. Other notables include Hollywood which fell 1.4% to $1,380, Weston remained unchanged and $1,400 and not included is Fort Lauderdale, which comes in at $1,483, falling 1.1% year over year. 

Douglas Elliman Releases Q3 2017 Market Report, South Florida Markets Show Slight Stall After Hurricane Irma

Douglas Elliman has released their Q3 2017 South Florida Market Reports for Miami Mainland, Miami Beach, Boca Raton, Fort Lauderdale, Palm Beach, Wellington, Delray, and Jupiter/Palm Beach Gardens. The data was compiled in partnership with Miller Samuel, who is a leading independent appraisal firm. Reports reflect price and sales trends along with current market conditions and emerging market trends. The data through Q3 2017 reflects the continued strong growth of South Florida real estate as price trends indicators continue to push higher despite a decline in sales due to disruptions in closings in the aftermath of Hurricane Irma. 

MIAMI BEACH/BARRIER ISLANDS HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price rose 4.2% to $400,000
- Average sales price was unchanged at $868,404
- Number of sales declined 11.8% to 690
- Days on market was 139, up from 120
- Listing discount was 8.9%, unchanged
- Listing inventory increased 1.4% to 5,895

LUXURY CONDO
- Median sales price increased 15.5% to $2,425,000
- Days on market was 196, up from 126
- Listing discount was 8.8%, down from 8.9%
- Listing inventory fell 8.5% to 1,130 units
- Entry threshold began at $1,590,000

LUXURY SINGLE FAMILY
- Median sales price shifted down 39.3% to $5,100,000
- Days on market was 265, up from 141
- Listing discount was 12.7%, down from 12.9%
- Listing inventory rose 33.9% to 217 units
- Entry threshold began at $4,350,000

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MIAMI COASTAL MAINLAND HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price increased 5.4% to $300,500
- Average sales price rose 4.2% to $408,405
- Number of sales fell 11.8% to 3,482
- Days on market was 76 down from 103
- Listing discount was 5.4%, up from 5.2%
- Listing inventory rose 12.4% to 12,194 units

LUXURY CONDO
- Median sales price fell 5.4% to $691,500
- Days on market was 176 days, down from 187
- Listing discount was 7.5%, down from 7.9%
- Listing inventory rose 25.6% to 3,115
- Entry threshold began at $472,000

LUXURY SINGLE FAMILY
- Median sales price jumped 13.6% to $1,325,000
- Days on market was 174 days up from 213
- Listing discount was 7.7%, up from 7.6%
- Listing inventory declined 20.9% to 987 units
- Entry threshold began at $877,000

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FORT LAUDERDALE HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price was unchanged at $1,100,000
- Days on market was 46, up from 31
- Listing discount was 6.5%, up from 6.3%
- Listing inventory increased 8.7% to 350
- Entry threshold began at $765,000

LUXURY SINGLE FAMILY
- Median sales price slipped 2.4% to $2,000,000
- Days on market was 205, down from 273
- Listing discount was 9.8%, down from 12.9%
- Listing inventory increased 0.6% to 347 units
- Entry threshold began at $1,200,000

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BOCA RATON HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price rose 12.5% to $900,000
- Days on market was 139 days, up from 98 days
- Listing discount was 10.7%, up from 8.9%
- Listing inventory fell 9.6% to 292
- Entry threshold began at $550,000

LUXURY SINGLE FAMILY
- Median sales price declined 11% to $1,380,000
- Days on market was 164 days, up from 153
- Listing discount was 7.8%, down from 11.3%
- Listing inventory rose 7.1% to 470
- Entry threshold began at $935,000

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DELRAY BEACH HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY SINGLE FAMILY
- Median sales price rose 15.6% to $1,775,000
- Days on market was 124, up from 103
- Listing discount was 18%, up from 8.8%
- Entry threshold began at $1,188,000

LUXURY CONDO
- Median sales price slipped 4.5% to $563,500
- Days on market was 123, up from 118
- Listing discount was 6%, up from 4.1%
- Entry threshold began at $355,000

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WELLINGTON HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY SINGLE FAMILY
- Median sales price declined 38% to $829,000
- Average sales square footage dropped 26.4% to 3,940
- Days on market was 110, down from 295
- Listing discount was 8.2%, down from 10.1%
- Listing inventory rose 29.7% to 275
- Entry threshold began at $640,000

LUXURY CONDO
- Median sales price jumped 65.6% to $525,000
- Days on market was 211, up from 128
- Listing discount was 7.6%, up from 3.4%
- Listing inventory declined 45.5% to 30
- Entry threshold began at $400,000

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PALM BEACH HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO AND SINGLE FAMILY
- Median sales price declined 21.2% to $7,700,000
- Days on market was 252, down from 254
- Listing discount was 13.4%, down from 15.2%
- Listing inventory rose 4.4% to 95
- Entry threshold began at $4,865,000

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JUPITER / PALM BEACH GARDENS HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
JUPITER SINGLE FAMILY
- Median sales price increased 10.4% to $510,000
- Days on market was 68, up from 64
- Listing discount was 6.8%, up from 5.7%
- Listing inventory declined 12.9% to 392

JUPITER CONDO
- Median sales price increased 3.6% to $285,000
- Days on market was 59, up from 53
- Listing discount was 5.2%, up from 4.4%
- Listing inventory surged 71.3% to 257

PALM BEACH GARDENS SINGLE FAMILY
- Median sales price increased 11.4% to $479,000
- Days on market was 77, down from 86
- Listing discount was 6.7%, up from 6.3%

PALM BEACH GARDENS CONDO
- Median sales price rose 7.9% to $232,000
- Days on market was 55, down from 56
- Listing discount was 3.8%, down from 4.3%

Hurricane Irma's Effect on The Miami Real Estate Industry

Despite the potential destruction that was anticipated by Hurricane Irma, Miami, along with most of the South Florida metropolitan real estate markets, were mostly spared from any significant or crippling damage. $38.94 billion of CMBS debt was exposed to potential damage in Florida, with $6.41 billion in Miami alone. Fort Lauderdale held an $4.32 billion exposed as reported by The Real Deal. Cranes were reported down at PMG's 300 Biscayne Avenue and Related Group's GranParaiso and Auberge Beach Residences and Spa in Fort Lauderdale. According to Turnberry Associates CEO Jeffrey Soffer in an interview on CNBC, he doesn't believe that the South Florida real estate markets or prices will take a hit in the long term. “It’s just a way of life. It doesn’t happen that often, and the reality is that Florida’s very well prepared," said Soffer. At the same time Stuart Miller of Lennar Corp. announced that Irma has delayed hundreds of home deliveries. The nation's largest home builder said that close to 700 home deliveries in Florida, George and South Carolina have been impacted. The storm came just as the company was reporting new orders rising 8% year over year. Time will tell, but it is apparent that Miami is on the way back to business as usual where the real estate market has been bolstered in recent years due to both domestic and foreign demand alike. 

Miami Ranks as 9th Most Expensive Rental Market in the United States

Miami has ranked as the 9th most expensive market when it comes to renting in the United States according to Zumper. The average price of 1-bedroom rentals remained the same year over year, at $1,800. The average rate for 2-bedroom units fell by 2% to $2,450. The most expensive places to rent remained Fisher Island at $5,500 for a 1 bedroom unit per month, Park West at $2,375, South Pointe, at $2,300, Oceanfront, at $2,250, Key Biscayne at $2,200, Coral Gable's Industrial Section at $2,150, and Coconut Grove and Brickell at $2,100. The cheapest markets to rent remain Brownsville at $750 per month for a 1 bedroom and Gladeview at $880. The Upper East Side and Bayshore had the fastest increasing rents, both up over 13%. Little Haiti and Allapattah fell by over 11%. 

1 Hotel & Homes Reports Strong First Half of 2017 With $23 Million in Sales

1 Hotel & Homes is reporting a strong first half of 2017 with over $23 million in sales. While many projects have had to readjust their pricing, South Beach has seen some strong closings including a 3 bedroom unit in the Setai which recently closed for $5.5 million and a 3 bedroom penthouse at W South Beach which recently closed for $10.2 million. Notable sales from 1 Hotel & Homes over the period include the closing of Penthouse 1717, a 4 bedroom, 3.5 bathroom residence spread over 3,278 SF of interior living space and 1,907 SF of outdoor space. The unit closed for $6.975 million just five days after hitting the market. Additionally, Penthouse 1706, a 2,552 SF, 3 bedroom and 3.5 bathroom penthouse closed for $5.45 million in June; as well as Penthouse 1604, a 1,907 SF, 3 bedroom and 3.5 bathroom penthouse, which sold for $3.4 million.

1 Hotel & Homes is located on 600' of pristine beachfront and an entire city block of Collins Avenue. 1 Hotel & Homes South Beach features 155 private residences atop a 425-key luxury resort. 1 Hotel & Homes South Beach is a unique, eco-friendly, LEED-Certified oceanfront property inspired by nature and crafted from sustainable materials. Residences feature interior design by award-winning Brazilian architect Debora Aguiar, and the penthouses at 1 Homes feature top-of-the-line Artefacto furnishings. The interiors boast custom Italkraft kitchens with imported Italian silver travertine, white quartz countertops, Wolf appliances, Dornbracht faucets and trash, composting and recycling bins. Owners at 1 Hotel & Homes South Beach can enjoy an array of 5-star amenities including 4 oceanfront swimming pools, private residence entrance staffed with 24-hour concierge services and valet parking, beach club, a Tesla house car service; pre-arrival kitchen and pantry stocking with a local, organic option; in-home natural care botanical service and eco-conscious housekeeping and linen service, access to three restaurants and bars from award-winning chef Tom Colicchio, including Beachcraft, and a rooftop pool and restaurant-bar with panoramic views of the Atlantic Ocean and Miami skyline. Remaining inventory ranges in size from 1,694 square feet to 4,207 square feet and is priced from $3.8 million with exclusive sales and marketing by Douglas Elliman Development Marketing. 
 
“Discerning buyers from across the globe continue to be attracted to the eco-conscious healthy lifestyle one can only find here,” said Richard LeFrak, LeFrak Chairman & CEO. “1 Hotel & Homes combines stunning fully-designed, turn-key residences with five-star resort amenities that include the Bamford Haybarn Spa, the Spartan gym, exquisite dining, aqua-blue beaches and the most beautiful panoramic views of the city and the Atlantic Ocean. 1 Hotel & Homes rewards the discriminating buyer.”

Tour the Newly Unveiled Penthouse 1612 of 1 Hotel & Homes Designed by Artefacto

Colombia Tops Foreign Investment List as Miami Sees Surge of New Interest Amongst Brazilian Buyers

2017 has seen a surge of new interest amongst Brazilian buyers after they pulled back in 2015 and 2016, while also seen continued strength from Colombian buyers. Miami has long been a common home for South American flight capital, as wealthy South Americans seek to move their assets out of their countries due to crime and political instability. Colombia has seen an increase in flight capital and Miami has seen a spike in interest from their wealthy buyers over the past several years as their government formally ratified a peace deal with FARC, a guerrilla activist group,  after it was rejected by voters (On June 27, 2017, FARC officially demilitarized and handed over their weaponry to the UN). Brazilians have seen a volatile economy, crime and political turmoil effect their country. Unfortunately these same political factors, along with a strengthening Brazilian Real against the dollar put a slowdown on Brazilian buyers in Miami over the past 2 years (2015, '16). Now amid further uncertainty, many wealthy Brazilians have once again set their sites on moving their assets to the United States via Miami.

According to the MIAMI Association of REALTORS, Colombia leads all foreign countries in searches for Miami real estate, followed by Venezuela and Brazil. Colombia and Venezuela remained unchanged year over year as Brazil moved up from 5th, passing the United Kingdom and Argentina. According to Mansions Global, Turnberry Ocean Club is reporting that 21% of their international buyers have been Brazilian and One Thousand Museum is reporting that over 20% of their pre-construction buyers are Brazilian. Three Hundred Collins has seen 25% of their current pre-construction sales go under contract to Brazilian buyers and the building is over 80% sold.

“As Miami evolved from a tourist city to a global metropolis, we’ve seen more diversified foreign home buyers search and buy properties here. It’s no longer just South America. It is home buyers in India, China, Turkey, France and other countries who want to live the Miami lifestyle,” said Christopher Zoller, 2017 MIAMI Chairman of the Board. 

Top 10 Countries Visiting Miamire.com in March 2017:

1. Colombia
2. Venezuela
3. Brazil
4. Argentina
5. India
6. Canada
7. Philippines
8. Dominican Republic
9. France
10. Spain

Miami is Second-Fastest Growing Major City in America in 2016

According to Census data, Miami was the second-fastest growing major U.S. city in 2016. Miami's population grew 2.9% from July 1, 2015 to July 1, 2016. The city added 12,715 people which led to population growth to 453,579 from 440,864. Since 2010 Miami's population has grown 13.5%. Seattle was the country's fastest growing city at 3.1%. The Miami Metropolitan area has an estimated 5,400 people moving into South Florida per month. Miami is the 4th most densely populated major city following New York, San Francisco and Boston.