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Sunny Isles Luxury Condos Pave the Way for a Strong Buyers’ Market

The Sunny Isles Beach neighborhood of Miami is in the midst of rare opportunity for buyers seeking both investments and second homes within the Miami luxury condo market. After experiencing several years of softening marketing conditions in the lead up to 2019, an ample supply of condos is on offer priced over the $1 million mark. What does this mean for potential buyers? As foreign investors and second homeowners look to sell, the number of opportunities for new buyers to enter the market is at an all-time high. 

Perfect Timing for Buyers to Enter the Market

With several high-rise developments constructed during the last boom, an influx of buyers flooded the market driving prices high and encouraging further construction. As prices continued to be driven upwards, many buyers entered the market with the anticipation of flipping the property for a profit once construction was completed. This led to a rapid increasing in inventory within the high-end condo market causing a market correction, creating the perfect storm for buyers looking to enter the market today. 

The number of motivated sellers looking to exit the market has increased, leading to some very advantageous deals for buyers. By seeking out condos on sale at around market value or even lower, investors as well as prime residents or second homeowners have the opportunity to own a piece of luxury real estate in one of Miami’s most sought-after neighborhoods. 

Outlook on Miami Predicts Strong Growth in Luxury Sales

Overall the luxury real estate market in Miami has experienced strong growth over the year. A predicted growth rate in 2019 of 5% by Knight Frank’s Wealth Report suggests the Magic City will outperform other major US markets such as Los Angeles and New York City. This will put Miami in 5th place for the fastest growing luxury real estate market in the world. 

Fueling the growth is the Florida’s low tax status drawing in millionaires from across the US. When compared to 2017, Miami prime properties have enjoyed a growth rate of 3.3% and while 2018 remained stable, the new law on State and Local Tax (SALT) deductions will likely encourage new residents to move to the Sunshine State. With Florida’s lack of income tax, this is created an attractive incentive for high income earners and UHNWI relocate to the Sunshine State.

Miami Positioned to be the next Global Business Hub

Further advantages for high net worth individuals are Miami’s growing reputation for being a global business hub. The continuing trend of multinational corporations establishing their headquarters in Miami has led to Miami now having the highest concentration of International Banks south of NYC. This will likely further attract investment in both high end condos and the demographic that demands this type of real estate, for investment as well as prime and secondary residences.  

As Miami continues to attract UHNWI into the real estate market, opportunities become increasingly challenging to find. This leaves several neighborhoods which are poised for growth on the radar, allowing investors take advantage of previously softer conditions. In buyers’ markets such as Sunny Isles Beach, there is an exceptional case for purchasing within the next 1 - 2 years as sellers are looking to exit the market and prices reach their trough. 

Contact

  • ONE Sotheby's International Realty

    Yuliya Kachko
    Real Estate Broker

  • TELEPHONE

    C 305-310-9305

  • OUR LOCATION

    18288 Collins Ave Suite 1
    Sunny Isles Beach, Florida 33160

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