Miami’s Luxury Real Estate Boom: The New Billionaire’s Playground

Wealthy buyers are increasingly choosing Miami as their destination of choice, fueling a surge in demand for ultra-luxury homes priced over $10 million. Miami-Dade County saw 102 residential transactions over this price point in the first half of 2024, a 32% increase from the same period in 2023, according to the Knight Frank Global Super Prime Intelligence Q2 2024 report, conducted in partnership with Douglas Elliman.

The report tracked all high-end residential closings listed on the Multiple Listing Service (MLS), and Miami-Dade appears set to surpass last year’s record of 124 luxury property deals.

Record-breaking sales continue across the county, with Pinecrest becoming a hotspot for affluent buyers. One notable transaction saw Andre Hakkak, a portfolio manager at White Oak, purchase a sprawling 15,000-square-foot home for $14.3 million, setting a new benchmark for the area.

Since the pandemic began in 2020, Miami has attracted major corporate expansions and some of the world’s wealthiest individuals, including Jeff Bezos, Citadel CEO Ken Griffin, and Malik Sefrioui, heir to real estate billionaire Anas Sefrioui. Their presence has contributed to skyrocketing home prices in neighborhoods like Coral Gables and Miami Beach.

Liam Bailey, global head of research at Knight Frank, pointed out that Miami has transformed into a major hub for entrepreneurs and business owners, making it a global destination for the ultra-wealthy. “Miami is becoming more diverse in its appeal, attracting not only wealthy buyers but also growing businesses,” Bailey said. “This is making the city a key player on the international stage.”

As of June 2024, Miami ranks fourth globally for high-end residential sales, trailing only Dubai, New York, and Hong Kong. Other cities, including London, Palm Beach, and Paris, fall behind Miami in this luxury market surge.

Real estate agent Josie Wang has noticed international buyers flocking to Miami from countries like France, India, and Colombia, along with domestic buyers from states like California and New York. She highlighted that many of her clients, initially drawn to the city during the pandemic, chose to stay for its lifestyle and culture.

In Coral Gables and Coconut Grove, homes off the water priced at $10 million often span around 5,000 square feet, while waterfront properties typically start at $30 million.

Seeing the demand, developer Gaetano Caltagirone is rapidly constructing single-family homes to cater to Miami’s ultra-wealthy newcomers. The President of The Calta Group has five homes in development across Coral Gables, Pinecrest, and South Miami, all priced between $11 million and $17 million. He expects this demand to remain strong for at least two to three more years, driven by high-level executives relocating to the area.

Jay Phillip Parker, CEO of Brokerage for Florida and President of Douglas Elliman Development Marketing, believes this influx of affluent buyers is beneficial for Miami-Dade, as it will bring new businesses and services to the local community. He emphasized that these buyers have a unique and opportunity-driven mindset, which bodes well for the market’s future growth.

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