Wealthy buyers continue to scoop up condos and houses priced over $10 million so much so the activity led Miami to become one of the hubs of luxury living in a new report by Douglas Elliman and Knight Frank. Above: Zaha Hadid’s One Thousand Museum adorns the downtown Miami skyline. Courtesy of Levy
If you could live anywhere, where would it be?
More wealthy buyers are answering ‘Miami,’ raising demand for condos and houses priced over $10 million.
Miami-Dade County had 102 residential deals priced over $10 million for the first half of 2024, up 32% from 77 during the first six months of 2023, according to the Knight Frank Global Super Prime Intelligence Q2 2024 report done in partnership with real estate firm Douglas Elliman.
The report tracked all residential closings above this price range on the Multiple Listing Service, or MLS.
So far, Miami-Dade looks to be on track to beat last year’s record of 124 uber-luxury deals.
Homebuyers and investors are breaking records in areas like Pinecrest. Andre Hakkak, a portfolio manager at White Oak, set a new bar for the most money spent on a house in the area, dropping $14.3 million on a 15,000-square-foot house with seven bedrooms and six bathrooms.
Corporate expansions and some of the world’s richest people have moved to or invested in Miami since the pandemic started in 2020, including Amazon founder Jeff Bezos, Citadel CEO Ken Griffin and Malik Sefrioui, heir and son to real estate developer and billionaire Anas Sefrioui. Many flock to the same cities, and the activity has raised home prices in Coral Gables and Miami Beach to new heights.
The star power has put Miami on the map for the wealthy, said Liam Bailey, global head of research at Knight Frank and co-author of the firm’s latest report.
“Since the pandemic, Miami has become a significant national and broad international market,” Bailey said. “The general tone is Miami is becoming more diverse in terms of its attractions to work and growing businesses. All of those things make it a wealth hub for entrepreneurs and business owners.”
MOVE OVER, PARIS
Miami’s growing stardom helped it rise in the ranks of top global cities for the super rich. As of June, Miami has the fourth most uber-luxury residential sales compared to any other city in the world, following Dubai, New York and Hong Kong, according to the report. Other cities trailed Miami, including London, Palm Beach and Paris.
Josie Wang sees buyers coming far and wide to buy homes in Miami-Dade, including from France, Scandanavia, England, India, Colombia and Mexico. U.S. buyers are also fueling demand. She caters to those moving from California, Illinois, Massachusetts and New York.
“The name — Miami — is a draw,” said Wang, a real estate agent with the firm Brown Harris Stevens. “During COVID, a lot of people just thought they were renting for a couple of years and would return, but after their time they love the lifestyle and culture.”
Many of Wang’s clients shop in Coral Gables and Coconut Grove. For $10 million, they can afford a lot off the water with a house spanning around 5,000 square feet. Those itching to live waterfront usually look at paying around $30 million and up.
RIPPLE EFFECTS OF HOUSING DEMAND
Seeing demand, developer Gaetano Caltagirone rushes to build single-family homes to meet the desires of the incoming uber wealthy.
Caltagirone, the president and principal of the Coral Gables-based The Calta Group, has five houses under development in Coral Gables, Pinecrest and South Miami, all priced between $11 million and $17 million. One will be finished late this year, and he’s aiming to complete the others in the second half of next year.
“We have had tremendous growth in that specific market,” Caltagirone said. “When you think of the top hedge funds moving here, the top 50 people in those firms can all afford these homes.”
Demand for this price range will last at least another two to three years, Caltagirone said, as more executives follow their colleagues or industry leaders and relocate to Miami-Dade.
The wave of wealthy buyers is a good thing for Miami-Dade County, said Jay Phillip Parker, CEO of Brokerage for Florida and President of Douglas Elliman Development Marketing. More executives moving down, he said, will bring more business and services for locals.
“That kind of buyer,” he said, “has a very different mindset that is opportunistic for the market.”
This story was originally published September 9, 2024, 12:34 PM.
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