Blue skies and palm trees swaying in the ocean breeze – Miami Beach is one of the nation’s most iconic locales. From Biscayne Bay to the Venetian Islands, Miami Beach features stunning scenery and unparalleled luxury. Known for sleek high-rises and sweeping oceanfront vistas, this incredible spot is home to some of the industry’s most exciting real estate. The market in Miami Beach has historically been one of the most coveted in the world, with opulent architecture and old-world glamor. Miami Beach is divided into several vibrant neighborhoods, each boasting more lavish property than the next. Before diving into the market status, let’s look at the legendary enclaves of this highly sought-after spot.
South Beach
Arguably the world’s most famous beach, South Beach is Miami’s art deco fever dream of ultraluxe nightclubs, culinary flagships, and quirky culture. The high energy here is infectious, and the legendary nightlife often ends only when the day dawns over the waves. Sunrise walks can start a new day or end the one from the night before – either way, South Beach residents make good living a priority. The party rarely ends in South Beach, but residents find tranquility on the shores of this desirable spot. Lavish dining and cultural institutions are hallmarks of the South Beach lifestyle, while vintage architecture and the art deco style lure design aficionados to penthouse apartments and towering condominium buildings.
South of Fifth
Also known as SoFi, this exclusive neighborhood sits on the southernmost end of Miami Beach. Affluent and grand, SoFi’s tropical paradise dazzles with sparkling views and water sports galore. South of Fifth features some of Miami’s most exclusive properties – which is certainly saying something.
North Beach
Beachfront condos ascend high into the blue skies of North Beach, where swaths of glistening sand unfurl into the frothy waves. The ocean-centric North Beach fosters a healthy, active lifestyle and ensures residents have access to every conceivable amenity. Condos here feature full concierge services, ensuring a pampered and posh experience, and high-rises offer direct beach access. The tranquil, small-town feel is a completely different vibe from South Beach, and Florida-style mid-rises boast a breezy, MiMo approach to luxury.
Mid Beach
A natural melding of its North and South Beach neighbors, Mid Beach blends cool energy with beachfront serenity to create a coveted resort getaway. This diverse neighborhood is home to swanky hotels, chef-driven culinary masterpieces, and a vibrant arts district – not to mention that gorgeous coastline and sandy shore. Properties tend toward a cohesive mix of art deco stunners and luxury condos, plus a vintage feel from mid-century architectural details.
The Islands
The private islands off Miami Beach offer some of the most extraordinary living in the world. The glamor and opulence of Miami waterfront condos reach a pinnacle in the island neighborhoods and give new meaning to the term luxury.
Just a quick ferry ride from Miami, the 216-acre oasis of Fisher Island welcomes an elite group of international and American residents. Spanish Colonial styles dominate this picturesque enclave and the unparalleled privacy attracts high-profile residents looking for a retreat-style respite from the spotlight.
Coconut plantation property has found a new purpose in Key Biscayne. The laid-back lifestyle paves the way for days lounging on the boat or kicking up your adrenaline on jet skis. Golf carts take the place of cars as residents embrace the feeling that this paradise was made exclusively for them. Condos are five-star spas masquerading as homes, and the breathtaking beauty is a gift residents cherish as much as the privacy.
Miami luxury condos take on the stuff of dreams on the Venetian Islands. Comprising six islands, this private place acts as a kind of bridge between Miami and South Beach. Exceptional views and extravagant living make the Venetian Islands one of the hottest spots in the world for luxury real estate. Well-known residents and wealthy investors seek out the serenity and elegant excess of this exclusive area, creating some of the most affluent communities in the world. Condos here sport magnificent views of clear skies and aqua water and come complete with luxury amenities and boat slips.
Market History
South Florida has an impressive history with luxury real estate. The market has historically been driven by investors, attracting both international and domestic buyers looking to capitalize on Florida’s sunny skies and balmy weather. Investment and tax laws have long favored the expansion of Miami’s luxury atmosphere, encouraging those with business savvy and money to burn to make their mark on this celebrated market.
Luxury condos have enjoyed more than a moment in Miami Beach. Although luxury condo sales were down by 10% from 2015 to 2020, last year saw a very different story. Single-family residences dropped significantly while condo sales soared by 55 percent.
With South Beach’s thriving nightlife and Miami’s reputation for high glamor and monied experiences, condo investments offer a near-foolproof opportunity for investors. Considered the epicenter of travel, Miami Beach creates a unique air of upscale adventure, and the demand for vacation rentals has grown dramatically. As an investor-driven market, the luxury condo scene in Miami Beach is more cyclical than the single-family property market and, as such, requires a bit more attention.
While it has been hot for some time, the luxury condo market in Miami Beach has been in serious overdrive for the past year. Prices climbed higher and higher, inventory disappeared almost as soon as it landed, and demand was intense. Considering the unbelievable peak, it was only natural that the market would cool a bit. In 2021 and quarters one and two of 2022, the luxury condo market reached fantastic heights.
Current Market
While the luxury condo market shift is not drawing too much concern, the numbers certainly have fluctuated. The current Miami condo market has seen changes from record highs last year, although the changes are not uniform. While mainland Miami condo sales dropped by seven percent from last year, prices reached a record high. Unit sizes are down, but average prices soared 24% over the previous year. Demand has been strong and inventory has been scarce, prompting numbers that show a thirst for properties and a need for more on the market.
The COVID-19 pandemic caused a major stir in the Miami market in general, with Manhattanites seeking out the fresh air and sultry climate. The proliferation of remote offices meant home and work could be anywhere in the country, and employees took advantage of the opportunity in droves. In a time when outdoor space is sacred and quarantine equates to staring at the same walls for hours on end, real estate has boomed with buyers looking for a residential paradise and a killer way to enjoy the warm weather and sunshine. Last year saw an incredible run on luxury properties and elevated Miami Beach to an even higher echelon of appeal.
Today, Miami Beach condo sales show an interesting mix of numbers – sales have dropped 18% from the second quarter of last year, and median sales prices are down, but average prices increased. More expensive units are the cause – a greater number of costlier condos sold this year, driving up prices and slightly skewing the metrics regarding demand.
Fewer condos are being built, resulting in a much more limited inventory, and banks are becoming more stringent with their financing, requiring a 20% minimum down payment. And with the Federal Reserve raising interest rates, and the subsequent rise in mortgage rates, the investor-driven market is getting more expensive. But even though Miami has surpassed New York’s legendary status and is now considered the most expensive housing market in the country, investors are still eager to capitalize on the ever-climbing rent prices and high demand for Miami Beach rentals and vacation homes. The market may have taken a slight breather from the record sales, but the pace is still healthy and price increases prove that luxury condo sellers still reign supreme in Miami Beach.
Market Predictions
Miami luxury condos sailed through the summer and seem to be as coveted as ever. But what about the third and fourth quarters of this year and beyond? Experts will keep a close eye on the market to see if the decreases signal a seasonal shift or a sign of a correction in the market and inflation. Until then, interest from high-net buyers remains high and suggests a robust climate for fall. Prices may fluctuate, but demand will likely continue. International investors have historically been attracted by Miami Beach’s glitz, glamor, and tax breaks – and depending on the country from which these global investors hail, the prices, whether high or low, may be merely a number. In the ultra-luxury market, movement will likely remain slow, but this is due more to the low inventory than market instability or lack of interest.