The desire and quantity of Miami luxury real estate is booming in historical proportions. In the past decade the real estate market in Miami was in such a dry state that developers of new construction put a halt to building any new properties. Currently in Miami, there are almost 100 new towers that are under new construction, with three of them consisting of penthouses that are priced at $50 million or above. This is an unprecedented occurrence in this market. The only recent property that has come close to that mark was back in 2012 when a property was sold for just over $45 million, but was a 20,000 square foot house built on 2 acres of property. There hasn’t been a condominium sold for that much to date in Miami. The highest recorded condo sale was at $34 million. With these condo sales of north of $50 million being public knowledge, it is only natural that the penthouses of condominium complexes will increase because the owners of other towers believe that their unit is the best and should be price tagged at a higher amount. This $50 million mark may begin to trend into being a status symbol for the tower owners, and when their penthouse is in that bracket of $50 million and higher, it will attract these ultra high-end buyers and their unit will be in a very exclusive club.
Since this current increase of $50 million penthouses has hit the market and being the first time that this has really occurred, it raises the question of how many of these ultra luxury units can the market afford to have? Being that there were none before and there are very few now, but seem to be an upcoming trend, there is definitely room for them. But who is going to purchase these penthouses? I there enough demand of wealthy people in Florida to cover the supply of these? The answer is yes, but they are not all from Florida. Different economic, political and even climatic factors have been attracting buyers from all over the world and the Northern part of the US. Economic and political uncertainty have brought people from Brazil, Russia, Argentina, Turkey and Italy to Miami. Also climactic factors have brought many people, mostly from New York, to come simply for the reason of the winters being so harsh and they want a warmer climate. Of course these are extremely wealthy people seeking to buy these uber-expensive properties, but Miami is becoming a very attractive destination for people to live and why its market can afford to build these units without the risk of them not being sold.
Miami is slowly becoming a destination that attracts the very rich from the US and all different parts of the world. With all of the luxury real estate that it has to offer, its warm climate with beautiful beaches, and many attractions, it offers a better quality of life where paying $50 million for a single unit is worth it to its investors. Many of these properties are built by world renowned architects which gives credibility to the high price range and increases the attractiveness of the towers to high-end investors.
This is certainly a trend that may continue to increase as the real estate market in Miami stays hot, and new construction continues to increase. Month by month as more of these ultra luxury units are built and will soon to be sold, it will increase the status of the Miami market and certainly be a more attractive place to live than it already is.
amorhaimhpu 