Henry Pedroso MBA - Broker Associate CHMS TRC ePRO MRP PSA: September 2015

Monday, September 21, 2015

Miami Real Estate- For The Ultra High Net Worth Set, it's the "Most Bang for the Mega-Buck!"

According to 2015's globally recognized Knight Frank Wealth Report, (Knight Frank Wealth Report 2015 - Top 40 Global Cities) only two US cities make the Top10 of the "World's Most Important Cities to Ultra High Net Worth Individuals".

It's no surprise that New York City lands the top US city spot, earning the #2 global ranking behind London. The Big Apple is undoubtedly the country's long established hub when it comes to finance, the arts, culture, and more. What has raised the eyebrows of readers around the world is the "other" US city to make the Top 10. Congratulations, Miami! You have ARRIVED! Of the Top 10, you are #6 in the world!

Miami has evolved from a Southern trading post with a population of just over 300 when it's Founding Mother, Julia Tuttle (That's right! Miami is perhaps the only major metroplitan city to be founded by a woman!), convinced Henry Flagler to expand his Florida East Coast Railway to Miami into a world class metropolis and international destination for business, education, science and technology and, of course, tourism.

Today, according to official reports, "The Magic City" is home to 2.5M residents, is regarded as the gateway to Latin America, and has transformed itself into a global destination and Southern counterpart to New York in multinational trade, fine arts, music, film and television, design, education, science and medicine, gastronomy, cultural diversity and even a blossoming technology sector. You've come a long way, Miami! Well done!

Real estate has led the charge in Miami's evolution. Before the 2008 global crisis, real estate values in Miami averaged 5 1/2-7.0%, a very attractive performance record. While the 2008 crash devasted the global economy, Miami real estate was hit particularly hard, and it was hit first. However, 2011 was the turning point, and we haven't looked back. Miami has seen four consecutive years of uninterrupted and sustained record-breaking growth, value appreciation and expansion. It has been a remarkable recovery, only overshadowed by the outlook for the future.

We are proud of New York City and concede that it deserves the top spot in the US, if not the world. We marvel at the fact that high luxury real estate in The Big Apple commands an extraordinary $4,000-8,000 per square foot, equal to Singapore, London and Hong Kong.

With high luxury prices in Miami falling between $1,000-2,500 per square foot (or roughly 75% less expensive than NYC), and considering all that Miami has to offer in terms of the work-live-play balancing act with a multicultural backdrop and some of the world's most beautiful land and seascapes, the current and future value of luxury real estate in this market are as bright as the morning sun that greets us every single day!

Here are a few of my favorite current and future luxury high rise projects in and around The Magic City. Whether the thrill and convenience of Downtown / Brickell Corridor is your preference, or you just can't resist the call of our world famous waterfront, Miami is where luxury and value fall in love!