According to Knight Frank’s Wealth Report for 2015, Miami is one of the most appealing cities in the world to the top one percent, and is projected to remain so for at least the next decade. Miami held the sixth spot in this year’s ranking, and was preceded by London, New York, Hong Kong, Singapore and Shanghai. These cities represent the peak of global capital and play host to some of the most affluent people on the planet, who enjoy all the various perks these places have to offer the uber-rich, including amazing luxury real estate.
Luxury Real Estate
This ninth installment of the report focused specifically on Miami, because out of all the cities Miami has
seen the greatest transformation over the past few years. Unlike places like New York and London that have been centers of wealth and glamour for most of their history, Miami was overlooked for a long time and only recently began to appeal to the super elite crowds. This past Friday, Knight Frank and their partner Douglas Elliman held a breakfast presentation and discussion panel at the Moore Building in Miami’s Design District to discuss the reasons behind the city’s new-found status, particularly with regard to the emergence of luxury real estate as a factor. This is the aspect that really draws those affluent populaces, as Knight Frank’s global head of research Liam Bailey remarked, “Underlying this is real demand for luxury properties. Where do people want to buy? They want to be in London, they want to be in New York, they want to be in Miami.” Luxury real estate naturally appeals to a high-end crowd, and a prominent market that specializes in these types of properties is what makes a city attractive to the super wealthy.
Another aspect of Miami that economists believe caused its rising prominence is that it is becoming a global city, through the international status of South Beach and events like Art Basel. As President and CEO of Dacra Craig Robins described it “Miami defines itself as a place incredibly fun but also a serious place with global, cultural sustenance.” In terms of cultural amenities Miami really does have it all, from fashion and entertainment to global cuisine and beachfront access, and as its reputation abroad grows so does its appeal to those affluent crowds who are investing in luxury real estate. This increased demand is also prompting developers to build more luxury units, so now really is the time to capitalize on these properties before the Fed bumps up interest rates later this year. If you are interested in either commercial or residential properties in South Florida, then contact a RE/MAX agent and they would be happy to help with all your real estate needs!