Miami: why investors keep on coming?
A halt in the buying frenzy which made Miami real estate a top city for International buyers, has left many to question Miami’s status as the best place to invest and has led others to wonder if the city will recover from the cool down. Magnified by an ever-increasing supply of new condo inventory, the residential market no longer dominates the headlines with multi-million dollar cash-buyers and record breaking sales transactions.
But even amidst reports of a downturn, recent analysis confirms that International and domestic investors concentrated in Latin America, Europe, Canada, Asia, (specifically China) and the Northeast US, still find Miami as an attractive destination for property investments.
Here are some select reasons buyers still prefer Miami:
- Miami’s real estate market is highly profitable for investors, with higher rents translating to additional income for landlords and investors. According to June’s National Rent Report by Zumper, Miami retained its title as the nation’s eighth-most expensive rental market, ahead of both Seattle and Chicago in the top 10. The luxury condo market boom has signaled a shift in rental prices contributing to higher overall prices throughout South Florida.
- The Miami housing market is still affordable in comparison to other global cities. While in Monaco or London the average price per square foot for a luxury property is, respectively, US$4,500 and US$1,930, in Miami buyers will pay only US$750, according to the comprehensive report Luxury Defined 2016, by Christie’s International Real Estate.
- Miami’s incomparable location and amenities makes it a top choice for Investors. Purchasing properties in South Florida means having quality options to chose from. Buyers have their choice of designer residences in premier new luxury buildings, access to one of the world’s most beautiful beaches, premier shopping, dining, entertainment and recreational activities for the entire family, and of course, tropical weather all year long.
Miami is still a young global city with unlimited potential in all industries. The allure for investors is still attributed mainly to the city’s recent and projected future growth. Miami is a city transformed with a strong economic climate, significant infrastructural advancements, some of the best developments in the world, and firmly holds its position as a leading global destination. The cities location, amenities, architecture and new developments offer investors much more than many cities worldwide.