How High End Tourism Drives Miami Real Estate Investments
International Investors have established a monopoly on Miami’s luxury residential market. Although foreign migration to Miami is often credited to the economic instability of global markets throughout Latin America, the new Knight Frank Wealth report recognized worldwide migration patterns for the wealthy are also significant in hotspots catering to ultra high net worth investors (UHNWI’s) through seasonal events in art, sports and business.
High end tourism and the seasonal stream of foreign wealth that flows to specific destinations such as Miami have been linked to major VIP events. The Knight Frank report illustrates that Art Basel Miami Beach, the most significant art fair in the United States, turns Miami into a private-jet hotspot during the first week of December. The event attracts wealthy individuals to the city who ultimately progress into permanent or second-home buyers, driving residential property investments in Miami and Miami Beach. According to the report, a direct connection exists between the migration patterns of the wealthy to preferred locations for events and the boost in demand for real estate. Art Basel is only held annually in three dynamic cities: Basel, Hong Kong, and Miami Beach.
Art Basel Miami’s exclusivity appeals to the upper echelon of the art world and its sophisticated, international crowd of artists, collectors, investors and celebrities. Miami’s population increase during Art Basel creates a steady flow of money into the city during the weeklong festivities, which includes exhibitions of galleries from North America, Latin America, Europe, Asia and Africa.
The winter months in Miami normally produces high end tourism as snowbirds and returning residents migrate for major events such as Art Basel Miami, and holidays such as Thanksgiving. December dominates as Miami’s peak month for population growth. Data shows a sharp rise in population of over 5,410 individuals staying in permanent and second homes compared to 1,170 during July’s low season. Like Hong Kong, who holds its annual Art Basel event in June, Miami’s December event draws the most millionaires, worth an excess of US$10 million or more. Now in its 15th year, Art Basel Miami capitalizes on its unique geographic location connecting North America and Latin America.
The movements of the ultra rich fluctuate each season, but in the process of yachting and private jetting to top destinations and VIP events all over the world, they have created an exclusive, niche market with a distinct taste for investments in luxury residences in the world’s most happening cities. South Florida’s ongoing revitalization, economic development and top real estate market continues to cater to and meet the demands of these multi-millionaire investors. The Knight Frank Wealth report named Miami one of the strongest and leading prime residential property markets in the world, ranked 4th in North America and 14th worldwide in its Prime International Residential Index (PIRI).