Gil Dezer: Northeastern millionaires are flocking to SoFla

Dezer Development’s Gil Dezer dabbled in a few topics, between politics and Florida’s beneficial tax laws on CNBC’s Squawk Box on Thursday. He participated in the segment called “Florida’s Millionaire migration” and discussed how wealthy Northeasterners are buying property in South Florida to establish residency in a state where there is no state income tax.

“A business owner making a million dollars a year will actually be saving enough money in taxes to support a $2 million mortgage in Miami,” said the president of Dezer Development. “That’s really what’s driving sales right now.”

When asked about the numbers of Russians in Sunny Isles Beach, Dezer, whose projects include the Porsche Design Tower and the planned Residences by Armani/Casa in Sunny Isles Beach,  commented he is seeing a slowdown of Russian buyers due to recent sanctions.

Inventory

Recent releases show that the luxury condo market in South Florida is still saddled with high amounts of inventory, which is driving down sale prices.

A study by EWM, for example, declared that there are 17 years of inventory of condos valued at $5 million and up in Sunny Isles. Miami-Dade County faces approximately five years of stock of high-end units.

Douglas Elliman in its fourth quarter 2018 market report showed that the median luxury condo price in Miami Beach fell to $2.2 million, under 12.4 percent from the same period of the year before.

Featured image: Residences By Armani/Casa in Sunny Isles Beach