Miami's Global Reach to Wealthy Investors Increases as Oceanfront Land dries up
Miami's evolving real estate market and economic advancements in recent years has propelled the city into the most in-demand and exclusive destination for ultra-high net worth investors (UHNWI). One of the most dominating forces behind Miami's unprecedented growth; is its position as the hotbed of America's luxury residential developments, and record-breaking sales in oceanfront real estate, which continues to attract billionaire buyers from across the globe. Even with its reputation and international acclaim, and as the definitive choice for UHNWI, there is one limitation to Miami's rising skyline, no oceanfront land left to build.
According to the National Association of Realtors statistics, despite inventory scarcity in highly sought areas, the dollar volume of international sales in Florida totaled $23.7 billion. Purchasers of prime real estate included Canadians, Chinese buyers, U.K. residents and Western Europeans; the latter investors made all-cash transactions for the most expensive residences. Though Latin American countries represent the majority of primary investors in the early boom market, a steady increase of U.K. and Western European buyers have been acquiring multi-million dollar waterfront and oceanfront residences. The European prevalence in South Florida, specifically, has been concentrated on upscale condos along the coastline in areas such as Bal Harbour, Sunny Isles and South Beach.
Miami is ranked as the 7th top global city by the Wealth Report, strengthening its position as an economic powerhouse. Following New York, Miami is also the nation's second leading financial center and is now the third most visited destination and most popular city for International buyers in the U.S. thanks to a thriving business, communications, and cultural and art appeal that is widely becoming a distinctive part of the lifestyle the affluent prefer.
Miami caters to its affluent International population with acclaimed events in Music, Film, Art, Fashion and Entertainment. Art Basel Miami Beach, a record-breaking multi-billion dollar fair attracts the artistic community and cash-buying power and influence of wealthy foreigners who flock to Miami yearly in December for the event. The art fair boast installations citywide and has given rise to many more art and cultural events throughout the city. Art Basel in Miami Beach offers over $3 billion of art, from over 270 art galleries representing 31+ countries, and defines Miami as a destination where the UHNW population spend their leisure time, invest their money and satisfy their demand for Miami's lifestyle.
Miami's economic growth and impact is also supported by its billion dollar investments in infrastructure, retail and residential projects. With the expansion of the Panama Canal, the Port of Miami will be redefined as a major gateway to accommodate colossal mega-ships and solidify its position as the Cruise capital of the world. The city's residential and retail projects such as Brickell Citi Center, Miami WorldCenter and Resorts World Miami will appeal to International visitors who choose the city as a top destination for luxury shopping, entertainment and high-end real estate.
Along with its evolving lifestyle offerings, growth in economy and arts and culture, Miami's oceanfront luxury real estate continues to be a prized asset for UHNWI's. In South Beach, home to beachfront condos in the South of Fifth, Sunny Isles Beach and Bal Harbour, home to America's number 1 Mall at Ball Harbor Shops, oceanfront real estate in these prestigious and exclusive communities is the most coveted. Miami is emerging as a top cosmopolitan city in the coming years, and as the last parcels of oceanfront land in prime areas are developed with unrivaled five-star amenities and services fit for its rich investors, the concern for inventory to supply demand will be a main focus for the city, developers and realtors in Miami's future.