A new study by Knight Frank has found that Miami is among the top luxury real estate markets in the world. The report, which looked at 25 global cities, predicts that prices in Miami will increase 5% over the next year.
While other markets, such as Seoul and London, will see a slowdown in 2023, Miami’s market remained strong thanks to foreign investment and continued growth in the tourism industry. With Dubai’s strongest market, Miami was ranked second on the list.
According to Knight Frank, most prime residential markets have transitioned from a seller’s to a buyer’s market, with Dubai experiencing a price increase of 50% this year. However, these luxury prime markets are bound to slow down by next year as interest rates rise and economies recover from the pandemic.
Next to Dubai and Miami come Dublin, Lisbon, and Los Angeles, with 4% price increases.
Additionally, Singapore is not only the only Asian city in the top 10 but also one of four cities whose forecast has increased significantly in recent months. This growth can be attributed mainly to wealthy Chinese citizens moving their money and families to Singapore to avoid harsh lockdowns and an unstable economy back home.
Cash will also be king in these 25 cities, with residential buyers seeking a transparent and fast process in luxury markets.
Prime Prices In Miami Still Increasing
Despite rising interest rates and the economic uncertainty brought on by the COVID-19 pandemic, Miami’s luxury real estate market remains strong and Miami luxury condos are still the best options. As mentioned earlier, Knight Frank predicts that prices in Miami will continue to increase 5% this year and next.
This is partly due to foreign investment, with overseas buyers from countries such as China and Brazil continuing to purchase luxury properties in the city. And, about the Miami Beach real estate market, luxury condos and waterfront homes remain in demand as buyers look for beachfront properties that provide privacy and exclusivity.
Furthermore, the city’s tourism industry is also experiencing a resurgence as travel restrictions are lifted, and people come back from their respective lockdowns. With Miami being one of the top tourist destinations in the world, this could lead to an increase in demand for luxury real estate shortly.
And with financial corporations moving in and events such as Art Basel returning, Miami’s luxury real estate market looks set to remain vital for the foreseeable future.
According to Josh Stein, luxury real estate agent and founder of Josh Stein Realtor said,
“The luxury residential real estate market in Miami is likely to remain strong, especially considering the current state of the economy. In a period of uncertainty, wealthy individuals will continue seeking stability and security through investment in a prime property that can provide them with a haven.”
Although higher mortgage costs are expected in a rising interest rate environment, likely, this will not significantly impact the luxury market in Miami.
With its sunny year-round climate, beautiful beaches, and exciting nightlife, Miami remains one of the best cities to invest in real estate – luxury or otherwise. You may also explore our guide about the SurfRow Residences condos for sale and start learning more about the Miami luxury real estate market!
