Real estate investment in Miami is increasingly becoming attractive based on several reasons. The location and climate make Miami a favorite for international tourists escaping from the colder climates. And coupled with immigration from South America, the demand for real estate is on an upward trajectory.
Miami as an investment hub
As the second-largest financial center in the US, Miami has a strong commercial appeal and is home to numerous companies seeking to spread their tentacles to the Caribbean and South America. The favorable euro to dollar exchange rate and the affordable real estate market In South Florida makes the process, effortless, especially for investors from Europe.
The market trends are indicative of growth in the near term. There are also diverse investment opportunities for properties ranging from condominiums, commercial buildings, whole residential houses, detached houses, and plots to be developed.
The real estate market in Miami is very active and growing. The stability of the market and the availability of finance play a crucial contributory role in the growth.
The average prices are up by 16.1%, the best since 2008. And for the first time in five years, the average price per square feet has exceeded $ 305.
Real Estate investment options
The sale of blocks apartments grew by 2% over the last one year. Simultaneously, the number of apartments for sale has increased significantly. As a result, the rate of market absorption has gone down.
Sales in detached houses grew by 7.1%, and homes for sale by 12.2%.
There are large buildings and skyscrapers in Miami Beach, Bal Harbour, Brickell, South Beach, Sunny Isles, and Aventura with luxurious facilities such as valet parking, gym, and pool, among others. These properties attract professionals with a stable income but have high condo fees. The Investment range is between $ 250.000 and $ 300,000. The potential return is between 6 and 7% before property tax and management fees.
The South Beach Artdeco buildings have low condo fees and long-term rentals. They have a high investment yield, but the customer rating is low. The Investment target ranges from $ 200,000 with a potential return of between 6 and 7% before property tax and management fees.