Courtesy of Audrey Ross
The million plus market continues to be dominated by cash and foreign buyers, and even with the recent global slow down, the demand continues. Much of this momentum is driven by Northeasterners, especially New Yorkers, purchasing properties in Miami for the tax advantages. The US economy is the strongest in the world right now. We’ve seen sale volumes pick up at the million plus level, and even accelerate at $3 Million plus.
Miami owes its center stage luxury home status to the unique advantages the city offers including state-of-the-art residences, cutting edge architecture and design, friendly tax policies and strategic global location. It continues to increase its significance among high net worth individuals. While places such as the Bahamas also offer significant tax breaks as well as near perfect weather, Miami’ status as a cosmopolitan international city with modernized infrastructure, an international airport, and a politically stable environment continue to draw high net worth individuals from around the globe.
When alternating between alternative, comparable locations, high net worth buyers tend to prefer Miami. For buyers active in the business community, it makes a lot of sense. You can still be in New York in two hours, Europe in five, and South America is also a reasonable flight time away. It’s central to all the major international hubs.
What we can gather from the acceleration of sales: international buyers are betting on Miami. The second factor at play: property is recognized as one of the most secure, stable investments that can be made. As wealthy individuals move their money into secure assets, property remains one a favored asset to maintain and build wealth. We expect luxury sales to continue to be strong throughout the year, as long as interest rates do not rise and the markets remain stabilized.