The 2024 Douglas Elliman | Knight Frank Wealth Report Is Here – Tides Are Changing In Miami

 

The Douglas Elliman | Knight Frank Wealth Report is here again for the 18th year, and there is some very special news about the Miami luxury and ultra-luxury market. In the 2024 report, we see that Miami has hit an unmistakable inflection point. Change is upon us and there is no going back. So where are we headed?

To browse the 2024 Douglas Elliman | Knight Frank Wealth Report in its entirety, you may click here for a free copy to download immediately.

Out With The Old – Miami Has Changed

It used to be that mentions of Miami Beach conjured up thoughts of Cocaine Cowboys and wild Spring Breakers. This is no longer the case.

The Cocaine Cowboys days are now just a Netflix novelty and w hile the Spring Breakers are still interested in Miami, the sentiment is not shared. This shift has been in the works for years, with locals calling for a stop to the unhinged lawlessness. After a particularly wild season in 2023, Miami Beach introduced strict new guidelines for peak weekends in order to quell the interest.

There was even a cute PSA that was released, letting Spring Breakers know that we are breaking up with them.


Douglas Elliman Knight Frank Wealth Report Miami Spring Break


The PSA and hefty guidelines seem to have been effective. According to Google Trends, Miami was the #1 searched city for Spring Break destinations in most of the United States, yet the season has been extremely peaceful this year. You can see on this live walking tour of the beach today, the sand is clean and everybody is relaxing.

Now that we have made our point about having outgrown our past, we can embrace the future of Miami and Miami Beach.

Luxury Competition

The Miami Beach luxury real estate market has been on an upward trajectory for a few year (since COVID to be exact), but we are now entering into uncharted territory. Even billionaires now struggle to get a slice of the South Florida waterfront, according to the Wealth Report.

Developers have been working tirelessly to keep up with the demand for sophisticated boutique developments in prime locations. While Miami Beach and Miami have long been havens for vacation properties, one of the main differences we are seeing is that buyers are searching for full-time residences.

The world has learned that Jeff Bezos saved $600 million for relocating his home base to Indian Creek Island in Miami Beach. This is not an uncommon phenomenan. Kenneth Griffin relocated both his personal and professional headquarters to Mainland Miami, bringing thousands of hungry financiers with him. The Wealth Report indicates that driver’s license changes are up 78% in the first 9 months of 2023, an indicator of the volume of new Miamians we are gaining.

Growing Pains

The unprecedented growth of the Magic City has not come without pain. The single family market has cooled as buyers began to pull back from the demands of sellers, although growth was still pronounced.

Our local infrastructure is also hustling to keep up with the demands. We brushed on this yesterday for 305 Day, speaking about the increased competition for a limited number of private school spots. In the meantime, UHNW parents are bringing their New York A-game in order to win a coveted spot for their students.

Another growing pain is one that we cannot get around. Miami has only so much land, and what we do have is largely built-out. The only solution is vertical construction. This lack of supply will protect current pricing and force it to continue upward in the coming years.

Future-Focused Strategy

Because we are still early in the migration cycle, it is incredibly possible to reserve a property in the preconstruction phase and sell it once the development comes to fruition. Multiple investors have undertaken this strategy, whether they could not decide which project is a better fit or if they were strictly looking at the transaction for the upside potential in a trophy asset, and it pays.

Griffin’s Citadel has not even completed the build-out of their temporary office space in the Brickell Financial District and we are still waiting for the first renderings of their permanent headquarters on Brickell Bay Drive. We like to use Citadel as an example as they are the largest and most public example of the financial migration, but there are dozens of similar companies that are coming along with them.

Considering we have already experienced the growth that is well-documented in the Douglas Elliman | Knight Frank Wealth Report, this inflection point is a permanent trajectory toward a higher level of luxury and wealth in Miami.

The Perigon Miami Beach Penthouse West Kitchen

The Perigon Miami Beach Penthouse West Kitchen | Image Courtesy of MAST Capital

To browse the 2024 Douglas Elliman | Knight Frank Wealth Report in its entirety, you may click here for a free copy to download immediately.

If you, or someone you know, are interested in purchasing luxury real estate in Miami and/or Miami Beach, please contact Broker Michael Light, Founder/Owner of the Miami Luxury Homes Group at Douglas Elliman Real Estate, Global Ambassador for Knight Frank, Executive Director of Luxury Sales at Douglas Elliman and a member of its elite Sports & Entertainment Division. Michael has over 15 years of experience working with influential buyers from all over the world and is an expert on educating buyers on market statistics and trends. You may reach Michael directly on his cell phone at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.

For 305 Day, Let’s Discuss Miami Truth And Miami Hype

Today is 305 Day. Miami’s official hype day. For those who are new to The 305, this is the unofficial Miami Day named after our signature area code. Miami actually became The 305 back in 1947 along with the rest of Florida, but over the years it became a Miami thing as population grew. Those were the days.

As Miamians, we love finding reasons to celebrate, even if we are celebrating an area code. As proof, there are endless ways to celebrate 305 Day. Budget-friendly travelers can purchase flights from Miami International for $30.50. Axios Miami embraces things we love about our city (and things that annoy us too). If you do not find a 305 Cafecito at 3:05 on 3/05, I really don’t know what to tell you. Your loyalty to the city will be in question. We are our own best hype men (and women).

Kenneth Griffin’s Gift

One of the newer Miami hype men in town, Citadel’s Kenneth Griffin, made a very generous $50 million gift to the University of Miami. The funds will go toward research and cancer treatments for Sylvester Comprehensive Cancer Center and the gift is among the 10 largest health-related philanthropic gifts over the last decade in Florida, according to UM.

During the 305 Day ceremony Griffin said, “I was born in Florida, I will die in Florida. This will be my home. I will do everything I can to help make this truly one of the greatest cities in the world.”

He also expressed pride in having a 305 phone number and politely declined the offer to be named Mr. 305. Miami-Dade County Mayor Daniella Levine Cava bestowed the honor to him, however he stated that Puerto Rican rapper Pitbull will always be Mr. 305.

Ken Griffin Miami

Ken Griffin Miami

How Is Miami Really Doing?

The fanfare for 305 Day is indeed fun, but there have been some very real concerns voiced recently when the topic of the Magic City is brought up. Is there truth behind our hype, with regard to our luxury real estate market? Let’s have a look at the truth behind the comments from some of our critics.

Miami Is Overpriced.

This comment has been around since the beginning of time, but the fact of the matter is very simple. The market determines the price. Developers do not determine pricing from thin air. The properties are priced at the amount they will sell for. Since our market is thriving, inventory is being absorbed quickly, that is a clear indicator that the inventory is priced correctly.

Granted, there are some listings that lag on the market. These are the listings that are either priced incorrectly or they need a specific type of buyer (i.e. a buyer who is willing to take the time and effort to renovate). Turnkey properties that are well priced are being absorbed incredibly quickly.

Miami is Not Affordable. 

I will not argue with some folks who have been around Miami for many years that prices have increased substantially. There was a time not so long ago where it was unheard of to charge $500/square foot in Brickell. According to the 2024 Douglas Elliman | Knight Frank Wealth Report, which is released tomorrow, the average price in Miami is currently over $1,500 per square foot. Prices rose 6.5% in the last year alone, with no sign of retreat and no matter what happens with interest rates.

While this is a steep jump, it is also a realistic one. Both the neighborhoods and the real estate products that are offered today are far more elevated compared to what was offered 15 years ago. Once COVID cleared and people were no longer tied geographically to particular areas, a mass migration began and has not stopped. Miami simply offers the climate, culture, financial climate, and lifestyle to attract the global elite. Despite the increases, Miami is still far more affordable than leading global cities.

How Much Real Estate Does $1 Million Buy In Miami

Miami is in a bubble. 

I can see where skeptics would claim that we are in a bubble, except that this rapid and dramatic growth is sustainable. The Citadel effect is market-changing from an evolutionary standpoint. Their company motto is Citadel – Identifying the Highest and Best Uses of Capital. Their move was highly calculated and they are laying deep roots in the community.

Citadel founder Ken Griffin even said as stated above, “I was born in Florida, I will die in Florida. This will be my home. I will do everything I can to help make this truly one of the greatest cities in the world.”

Those are not the words of a company chief who is relocating just for a tax break, only to relocate again when the political climate changes. Their temporary office space is not even complete and the entire tri-county area is waiting for renderings of their new $1B waterfront headquarters that will soon be built at 1201 Brickell Bay Drive in the Financial District. Citadel is here to stay along with their ancillary companies and all of the brilliant minds that keep that machine going.

The only aspect of the new market that is showing signs of strain is the infrastructure Miami is working with at the moment. We were not equipped for such an influx of luxury buyers. Private schools are at capacity for instance, creating a highly competitive arena and causing some moves to be delayed. This is getting rectified as quickly as possible, but it is a small growing pain that we are experiencing.

Miami has an oversupply of new luxury condo developments.

I do agree that there is a lot of product to choose from, and it can be overwhelming to the untrained eye. There are so many beautiful projects with exclusive amenities, but to those of us who live and breathe Miami condos, there are distinct differences. We can help you to sort through the projects to identify the view you have in mind as well as the layout and amenity mix that fits your expection.

While there is a lot of supply, that does not mean oversupply. The projects are selling quickly and people are migrating from all over. The city is still very affordable compared to other elite cities and so remains very much in demand. With the finance and tech sectors booming, we will continue to see our population increase.

Rendering of Bentley Residences Dezervator Sunny Isles Miami

Rendering of Bentley Residences Dezervator Sunny Isles Miami | Image Courtesy of Dezer Properties

Gil Dezer, the developer behind super-luxury towers in Sunny Isles Beach, addresses these issues specifically with The Real Deal. Even Californians are relocating to Miami. Dezer is behind such towers as Porsche Design Tower, Bentley Residences Sunny Isles and Armani/Casa. Bentley Residences broke ground last week. It is currently over 50% sold with prices starting in the $5 million range. He expects delivery in 2027.

Truth or Hype?

Miamians love hype. We love to hype our city. 305 till we die!

While you will never be at a loss for hype in Miami, this time there is a mountain of truth behind the hype.

Happy 305 Day! Dale!

If you, or someone you know, would like to purchase or sell real estate in Miami or Miami Beach, please contact me, Michael Light, Founder/Owner of the Light Group at Douglas Elliman Real Estate. I am a resident of Coconut Grove and have direct knowledge of the local real estate market including insider/unreleased tips.  You may reach me directly at my CocoWalk office at 305-350-9842, on my cell phone at 786-566-1700 or via email at michael@miamiluxuryhomes.com.

Douglas Elliman’s Q4 2023 Miami Mainland, Coral Gables & Miami Beach Market Reports

Douglas Elliman has released the 4th quarter 2023 Elliman Reports for Miami Coastal Mainland, Coral Gables and Miami Beach & Barrier Islands. Produced in conjunction with Miller Samuel to provide you with the most comprehensive and objective market insight available, the Douglas Elliman Reports are recognized as the industry standard for providing the state of the residential real estate market, which includes an extensive suite of tools to help readers objectively identify and measure market trends, provide historical context to current information and provide comprehensive analysis of the results.

Download Douglas Elliman’s Q4 2023 Market Reports:

Douglas Elliman’s Q4 2023 Miami Coastal Mainland Market Report

Douglas Elliman’s Q4 2023 Coral Gables Market Report

Douglas Elliman’s Q4 2023 Miami Beach & Barrier Islands Market Report


Miami Coastal Mainland Q4 2023 Sales Overall Highlights

“Price trend indicators pressed higher across the market.” 

  • +10% Median Sales Price – Median sales price remained at a record high for the 3rd time.
  • -9% Closed Sales – Sales declined annually for the 7th straight quarter.
  • +9.1% Total Inventory – Listing inventory rose year over year for the 5th time in 6 quarters.

Aventura

  • All price trend indicators showed mixed year-over-year results.
  • Listing inventory increased annually for the 5th time.

Brickell

  • Median sales price increased year over year.
  • Listing inventory increased annually for the 2nd time.

Coconut Grove

  • Condo price trend indicators surged annually.
  • Condo listing inventory increased annually for the 1st time in 3 quarters.
  • Single family price trend indicators showed mixed annual results.
  • Single family listing inventory increased annually for the 2nd time in 3 quarters.

Downtown Miami

  • Condo price trend indicators increased annually.
  • Condo listing inventory increased annually for the 5th time.
  • Single family price trend indicators reached record highs.
  • Single family listing inventory declined annually for the 3rd time.

Palmetto Bay

  • Price trend indicators increased annually.
  • Listing inventory declined annually for the 3rd time.

Pinecrest

  • Price trend indicators showed mixed annual results.
  • Listing inventory declined annually for the 2nd time.

South Miami

  • Price trend indicators surged year over year.
  • Listing inventory declined annually for the 3rd time.

DOWNLOAD: Douglas Elliman’s Q4 2023 Miami Coastal Mainland Market Report Highlights

*Please note that Miami Coastal Mainland includes AventuraBrickell, Coconut GroveDowntown Miami, Palmetto Bay, Pinecrest and South Miami.


Coral Gables Q4 2023 Sales Overall Highlights

“Listing inventory expanded across most submarkets but remained sharply below pre-pandemic levels.” 

Coral Gables Single Family Year Over Year

  • +26.6% Median Sales Price
  • +1.6% Closed Sales
  • -18.1% Total Inventory
  • +3 Days of Marketing Time
  • Single family listing inventory fell annually for the 2nd time in 6 quarters.

Coral Gables Condos Year Over Year

  • +12% Median Sales Price
  • +12.2% Closed Sales
  • +73.3% Total Inventory
  • -3 Days of Marketing Time
  • Condo median sales rose for the 2nd time in 3 quarters.

DOWNLOAD: Douglas Elliman’s Q4 2023 Coral Gables Market Report Highlights

*Please note that this only includes the City of Coral Gables.


Miami Beach & Barrier Islands Q4 2023 Sales Overall Highlights

“While listing inventory increased, it remains far below pre-pandemic levels.”

  • +13% Median Sales Price – All price trend indicators increased collectively year over year for the 2nd time.
  • +3 Months of Supply
  • -12.5% Closed Sales – Sales declined annually for the 7th straight quarter
  • +12.6% Total Inventory – Listing inventory rose year over year for the 5th consecutive quarter.
  • +15 Days of Marketing Time
  • 6.7% Discount Off List Price

Sunny Isles Beach

  • Median sales price increased year over year for the 5th time.
  • Listing inventory rose annually for the 5th straight quarter.

Bal Harbour

  • Median sales price increased year over year for the 6th time in 7 quarters.
  • Listing inventory rose annually for the 4th straight quarter.

Bay Harbor Islands

  • All price trend indicators surged year over year.
  • Listing inventory rose annually for the 5th straight quarter.

Surfside

  • Condo sales increased year over year for the 1st time in 5 quarters.
  • Condo listing inventory rose year over year for the 5th straight quarter.
  • Single family median sales price increased year over year for the 1st time in 3 quarters.
  • Single family listing inventory was unchanged year over year.

North Bay Village

  • Median sales price increased year over year for the 1st time in 3 quarters.
  • Listing inventory declined annually for the 1st time in 5 quarters.

Miami Beach Islands

  • Median sales price increased year over year for the 5th time.
  • Listing inventory rose annually for the 5th straight quarter.

North Beach

  • Median sales price increased year over year for the 4th time.
  • Listing inventory rose annually for the 4th straight quarter.

Mid-Beach

  • Median sales price increased year over year for the 4th time.
  • Listing inventory rose annually for the 4th straight quarter.

South Beach

  • Median sales price increased year over year for the 2nd time.
  • Listing inventory rose annually for the 3rd time in 4 quarters.

Key Biscayne

  • Condo sales increased year over year for the 1st time in 8 quarters.
  • Condo listing inventory increased annually for the 1st time in 8 quarters.
  • Single family price trend indicators increased year over year.
  • Single family sales stabilized annually for the 1st time in 9 quarters.

Fisher Island

  • Price trend indicators declined year over year.
  • Listing inventory expanded year over year for the 2nd time.

DOWNLOAD: Douglas Elliman’s Q4 2023 Miami Beach & Barrier Islands Market Report Highlights

*Please note that Miami Beach & Barrier Islands includes Bal HarbourBay Harbor IslandsFisher IslandKey BiscayneMiami Beach Islands, Mid-Beach, North Bay Village, North Beach, South BeachSunny Isles Beach and Surfside.


If you, or someone you know, are interested in purchasing and/or selling real estate in Miami, Coral Gables or Miami Beach or simply would like to learn more about the real estate market in South Florida, please contact Michael Light, Broker Associate and Executive Director of Luxury Sales at Douglas Elliman Real Estate as well as Founder/Owner of The Light Group. You may reach Michael directly at his office at (305) 350-9842, on his cell at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.


If you are interested in the Delray Beach, Palm Beach, Naples, Sarasota, Tampa and/or St. Augustine market reports, CLICK HERE.

Miami Now Has The Hottest Rental Market In The United States

 
The Summer of 2023 is hot in Miami, and in more ways than just the weather!

Starting off 2023, RentCafe ran a study of the top rental markets among major cities across the United States. At the time, only New Jersey slightly inched past Miami in terms of competitiveness for rental properties in the first quarter. Fast forward to today, and the tides have turned. Miami’s historically low vacancy has caused a decrease in the supply of available properties, paired with ever-increasing demand, pushing us into the #1 slot as the Most Competitive Rental Market.

Let’s break down how we got here, and how to succeed in this environment if you need to move…

The Rush of Demand

His critics can say what they wish about Mayor Suarez, but nobody can take away the fact that he is a champion for business in Miami. He has created a business-friendly atmosphere that has caused a mass migration from cities including both New York and Chicago. The movement of these companies has expanded our job market beyond the historically-common tourism and real estate sectors. We are now a burgeoning tech hub and even considered an emerging global city in a new book that was recently published.

This swarm of new professionals arriving to the city is joining the swarm of migrants from that arrived in Miami during COVID, seeking a more laid-back lifestyle and remote working environment. The current statistics show that for each available rental option, there are 24 prospective tenants. This figure is nearly double the demand of North Jersey, the second most in-demand market in the country.

Developers are working as quickly as possible to bring new apartment and condo options to the marketplace, but these new buildings are not constructed overnight. A new high rise takes at least 24-months to construct, considering one floor per week is added to vertical construction. Developers were not yet caught up with the COVID-era demand when the new professionals began to arrive.

These are excellent problems to have, we are of the mindset that growth is good, but it comes with growing pains and this surge of demand is showing no signs of letting up anytime soon. As long as crime and taxes increase up north, those who are able will migrate to the south and Miami is mighty attractive.

Aerial View of Ritz-Carlton Residences Coconut Grove

Aerial View of Ritz-Carlton Residences Coconut Grove

The Supply Crunch

We touched on this a bit above, but the short supply issue we are faced with is more than just the fact that developers cannot finish new towers quickly enough. We are also faced with historically low vacancy because people in Miami are just not moving the way they used to.

According to the RentCafe.com survey, almost 72% of renters renewed their most recent leases, a figure that typically rests slightly lower than 60%. The market has changed so quickly that those who are situated in the most desirable neighborhoods are no longer willing to run the risk of losing their spot in the skyline in search of a spot in the latest building to open. Prices have skyrocketed and the newer towers that are opening are astronomically-priced compared to what residents are accustomed to paying. Rather than risking having to move to an emerging neighborhood, more people are staying put.

Another issue we are faced with is that buyers of available condos and homes have increasingly been end-users of the spaces, rather than rental investors. In the past, investors from foreign countries have taken advantage of Miami’s steady demand and availability of purchase opportunities to invest in spaces that are used as rental units. There was a time not so long ago that entire condo towers were almost completely sold out to rental investors. It was a win-win for everyone involved as the neighborhoods were flush with available options for tenants, whether long-term or just until they found a more permanent place to hang their hat. For the investors, their assets remained safe from political fears, or other issues in the investors’ homeland.  Changes in government policies on both sides of the border have slowed this pace, although not brought it to a grinding halt.

Aerial View of Brickell City Centre

Aerial View of Brickell City Centre

The fact that 2023’s Miami condo buyers are increasingly end-users also displaces tenants who have been in their rental condos for years, which leads us back to the demand issue and another tenant jockeying for rental units that just aren’t there. It’s an ongoing cycle that compounds itself, showing no signs of letting up until these new towers start to be delivered to the marketplace.

How To Survive And Thrive In This New Rental Market

For starters, it goes without saying that you need proper representation. Gone are the days where you can peruse the national listing aggregates (Realtor.com and Zillow), calling the number listed on a pretty listing and deciding the following week to move in within the next month. Today’s market requires tenant representation. You need someone whose sole job is to know what is currently available, what is possibly coming available soon, and knows how to sell you as a tenant to the landlord who has an opening coming up. It takes someone organized, knowledgable, professional and dedicated.

Know your budget boundaries and have a clear list of things you need from a rental home followed by a list of things you would like to have. Your Realtor will need to know their boundaries when they go out to do your bidding for you, else you could go out of budget quickly or wind up with a home that does not fit what you need. You will also need to be realistic with the cost of a rental property that embodies all of your “must haves” list.

These tips are not meant to stress you in any way. Any of the agents in The Light Group at Douglas Elliman are knowledgable and can seamlessly guide you into what you need based upon the guidelines we are given by you. Being candid with your agent and realistic with yourself is the best way for a stress and drama-free moving experience.

When working with an agent, also know that every real estate agent you encounter is working with the same inventory of possible options. Working with several agents will only stress you out more. Furthermore, agents are naturally more dedicated to their loyal clients. If you want an agent’s undivided attention and full-service for your home search, it’s a good idea to find someone you trust and work with that person.

If this is your first trip into the Miami property market, you can also prepare yourself for the fact that tenants do not pay their agents. Our service is free to you, the landlords take care of us. We realize that in some other markets, agents are compensated differently, but in Miami real estate representation is free for tenants. We at The Light Group would be honored to help you to bypass the stress and competition that this market brings and get you set up peacefully and seamlessly.

If you need/wish to move and are looking for a Miami rental property, or would like to talk about rental investment opportunities, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com. We would be honored to assist you.

Inside Jared Kushner And Ivanka Trump’s Miami Beach Rental Condo, Hitting The Market For $18.8M

 
Change is in the air for the Kushners! Just two years after their time as Senior White House Advisors to the Trump Administration came to an end, Jared Kushner and Ivanka Trump are preparing to end their stint as beachfront condo dwellers in the sleepy-yet-luxurious enclave of Surfside, Florida. The 7,000 square foot oceanfront duplex at Arte Surfside is being offered for sale at $18.8 million and is the last developer-represented home in the boutique development.

The expansive pad is Residence 201 in the ultra-luxury development located at 8955 Collins Avenue and is truly one-of-a-kind with just under 7,000 square feet of air conditioned space and 1,500 square feet of private outdoor space with Brazilian Ipe decks and Roman travertine ceilings. Each of the rooms has sweeping views of the coastline, beach, and intracoastal canal with floor-to-ceiling Schuco insulated glass wall systems. They also feature European white oak flooring, European Lualdi interior doors, open-concept living, dining and entertainment areas with linear cove lighting and Roman travertine accent walls. There are six total bedrooms including one service suite, seven and a half baths, two living rooms and two custom-designed Poliform kitchens.

The upper-level bedrooms are separated from the primary suite by a gourmet kitchen and formal living area. Each guest room has an ensuite bath and direct access to the wraparound terrace. The lower-level is reserved for social gatherings with an entertainment area, kitchenette, and a private stairway that provides convenient access to the pool area and beach.

Arte Surfside 201 Living Room

Arte Surfside 201 Living Room

Arte Surfside 201 Kitchenette

Arte Surfside 201 Kitchenette

The duplex residence is accessible via private elevator with fingerprint technology and Arte is known as one of the most secure luxury developments in the area. With only 16 units, the owners in the building are well looked after. Amenities include pool and beach services, a tranquil meditation pond, rooftop tennis courts (adjacent amenity building), a high tech fitness center with a private yoga studio, 75-foot indoor heated lap pool, a wellness spa with sauna, steam rooms and dual locker rooms. The residents’ lounge offers a catering kitchen, kids’ playroom, a pet runway, valet parking, on-site butler, lifestyle concierge and a general manager.

Beautifully designed by a collaboration of award-winning architects Antonio Citterio, Patricia Viel and Kobi Karp and developed by Alex Sapir, Arte Surfside offers the most unique exterior architecture in South Florida complimented by sophisticated interiors with state-of-the-art finishes.

Arte Surfside Condo Building

Arte Surfside Condo Building

Arte Surfside 201 Soaking Tub

Arte Surfside 201 Soaking Tub

Arte Surfside 201 Oceanfront Bedroom

Arte Surfside 201 Oceanfront Bedroom

If duplex residence 201 sells for the full asking price, it still will not be the only newsworthy sale in the small development. The lower penthouse sold this year for $22.5 million in crypto, making it the most luxurious real estate transaction completed with crypto. Additionally, the 3-level upper penthouse was purchased by a mystery New York financier for $33 million in 2020, just as Arte Surfside was opening.

Jared and Ivanka are relocating to their new home in Miami Beach’s “Billionaire Bunker,” Indian Creek Island, where they will be greeted by Tom Brady and Gisele Bündchen, who own two nearby homes in order to facilitate peaceful co-parenting. Among other people with rather un-humble abodes on the island include former Sears CEO Eddie Lampert; investor Carl Icahn; Jamie Galinski Baca, a Colombian banking magnate worth a reported $3.6 billion; Robert Diener, the co-founder of Hotels.com; Rakesh Gangwal, the former CEO of U.S. Airways and Mary Stephens Shula, the widow of former Miami Dolphins coach Don Shula. The entire island is private and gated with its own police force and an armed marine patrol that circles the island 24 hours a day, seven days a week.

If you are interested in a private tour of Arte Surfside, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.

Rapper Future Buys Bentley Residences Condo For $7.5 Million

 
While everyone else was seeing and being seen at Art Basel, Future was busy planning his future in Miami. The rapper purchased a $7.5 million 3 bedroom residence at the waterfront Bentley Residences in Sunny Isles Beach this week, just one month after purchasing one of the spectacular waterfront homes on Allison Island, a private gated enclave of just 49 homes.

While the Allison Island home is indeed something to discuss, with neighbors including Shakira, Pitbull and Lil Wayne, today we are here to delve into the equally luxe and secure Bentley Residences. It is easy to see why the “Life is Good” rapper would be attracted to Bentley Residences in Sunny Isles Beach.

Bentley Miami Tower Lobby Rendering

Bentley Miami Tower Lobby Rendering

Rising 60 floors above the sand at 18401 Collins Avenue, Bentley Miami Residences will have 200 condominiums reaching 749 feet into the sky. Each residence has at least 3 bedrooms and between 2,800-3,000 square feet with water views and expansive terraces with private heated swimming pools and outdoor kitchens with Gaggenau Vario electric grills.

The new tower will represent Bentley throughout. This is not a simple licensing deal for the tower and the brand. For starters, Bentley vehicles have a distinct diamond stitching on the leather seating surfaces, so that diamond pattern was added to the exterior glass of the building allowing for the development to be unmistakably Bentley from the moment you drive in from the street. They have also incorporated the special metal feel that the cars offer on every touch point into the apartments. This includes manufacturing their own faucet handles, door handles, etc. so that they have that special Bentley knurling.

Interior Finishes

Inside the residences, owners enjoy stone floors, walls, backsplashes and countertops, Gaggenau appliance packages with wine coolers, steam & convection ovens, built-in coffee bars, and Italian kitchen cabinets with motorized doors. Primary suites include behind-mirror televisions, saunas, water-view soaking tubs, towel warmers and heated floors. Primary closets all feature safes, and each door in the ultra-luxury development features the Flying B on the lever.

Keeping the Bentley theme flowing throughout the development, the common areas and amenities also emulate the luxury brand, from the three-story lobby to the cinema that is designed to be a reproduction of the comfort and style experienced from the vehicles themselves.

Bentley Miami Tower Cinema Rendering

Bentley Miami Tower Cinema Rendering

The “Dezervator”

While the tower itself is new, the development and design team have plenty of history together. Gil Dezer, a car enthusiast who is known for unapologetically flaunting his wealth on the road, has teamed up with Sieger Suarez Architects to design the project. This is the same team that designed Bentley’s sister project, Porsche Design Tower, in 2016.

The central feature of Porsche Design Tower was Dezer’s newly-patented “Dezervator.” The Dezervator is a special elevator that takes residents from the ground level of the building directly to their apartments without leaving their vehicles, so they can park by the door as though they were in a home. This is far more convenient than having to deal with valet. With Bentley Residences, the experience will always be upgraded. The residence that Future chose has a sky-garage that holds 4 cars at a time, allowing him to demonstrate his collection to others as he comes and goes from the building.

To see a preview of the Dezervator from Gil himself, check out this Youtube video.

“Owners of collector cars purchase them as pieces of rolling art, and we are happy to be able to provide a proper showcase for them in each residence by bringing the car up in the Dezervator and parking it adjacent to the unit, on view through a glass wall dividing the garage from the living room,” says Gil Dezer, president of Dezer Development. “Having four parking spaces adjacent to your unit . . . is a game-changer.”

If you are Future, life is indeed good. Construction is slated to begin in 2023, with closings taking place in 2026.

If you are interested in a presentation and specific pricing, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.

What To Expect In Miami’s Luxury Real Estate Market During 2023

 
Inflation. Interest rate hikes. Supply chain problems. Layoffs. Crypto-crash. Now that Art Basel 2022 is a wrap, these are the buzzwords that fill news stories leading up to the end of the year. What a buzz kill. But does this tell the entire story? Not according to Knight Frank, one of the globe’s largest real estate consultancy firms.

Each year, Knight Frank publishes its annual Wealth Report. This consists of a breakdown of the world’s prime property markets. It goes through global wealth distribution and threats and opportunities for wealth in these top markets. The 2022 Wealth Report has listed Miami as the second fastest growing luxury real estate markets in the Americas with just over 28% growth since 2021.

Knight Frank Luxury Markets Growth 2022

Knight Frank Luxury Markets Growth 2022

We make it a point to remain objective about Miami’s position in the global arena, the pros and the cons, and what needs to happen in order to ensure we remain perched at the top of the list. For 2021-2022, the growth was largely fueled by the aftermath of COVID-19 and then intensified by Florida’s tax climate paired with Miami’s collaborative business culture.

Let’s be honest. If we are forced to quarantine in place and remote working is a viable option, are you going to work remotely in a snowy, dreary climate with excessive taxes, or would you rather quarantine in a sunny climate that invites breezes coming through open windows as you collaborate with others in your field without the worry of excessive taxes? The answer is clear.

All of these positive attributes aligned and created a run on the luxury real estate market, throughout Greater Miami (including Coral Gables, Coconut Grove, Downtown Miami, Edgewater/Wynwood, Brickell and Miami Beach). Available inventory was snapped up at record pace and for record prices, yet the prices were still viewed as a bargain for New Yorkers who are accustomed to price tags over $5,000/square foot. In turn, the prices of luxury properties rose over 28%.

Is this growth sustainable?

Now that we are inching closer to 2023, the Fed has steadily raised interest rates, inflation has hit an all-time high, FTX bombed the already struggling crypto market big time and a new Presidential race is beginning to simmer in the wings. Will we crash or will we continue?

It would be very easy to say that because of the crypto markets alone, Miami should prepare for a hit. Knight Frank does not share this sentiment, having ranked Miami again as the second overall market for the high-end housing market. It does predict a slowdown, but not a bust.

Rather than the unheard of 28% growth, we should expect a 5 percent price growth in 2023. This may seem like a stumble, however compared to the 2 percent growth anticipated for the global luxury market as a whole and the previously forseen 2.7 percent growth for the Magic City, this really is something to celebrate and look forward to.

We are moving back into a place of stability and manageable growth. As we mentioned last week, both the art world and the real estate markets are trending toward traditional, tangible choices. Kitschy digital art did not sell as well at Art Basel as it has in recent years, and the new luxury developments that are performing the best are those with a timeless, elegant feel.

Examples, please.

Lest we all forget the banana duct-taped to the wall that sold for over $2 million at Art Basel Miami Beach 2019. This year’s viral piece was an ATM that doubled as a leaderboard, ranking attendees by their bank account balance. It did not sell, but was an awful lot of fun and an amazing conversation piece, even if the novelty does wear off as quickly as the 2019 banana on the wall turned brown. While gallerists noted a drop in digital art sales, there was an uptick in more traditional works by artists who used more traditional media.

Rather, paintings by Agnes Martin and Phillip Guston were trading for $7 million. Warhols were changing hands. The same holds true for the real estate presented. The real estate projects that fared the best were timeless. Exclusivity and privacy took a front seat to overt opulence and garish finishes. Six Fisher Island Drive was one of the standouts of this year’s fair. This is the new development that is already infamous as being so exclusive, you have to be invited to even consider purchasing.

Other new projects that we are seeing perform increasingly better over recent months are those that have solid brand names such as St. Regis Sunny Isles (pictured above), Cipriani in Brickell, and Waldorf Astoria Residences in Downtown Miami. Another strong sector in luxury Miami real estate is new developments that pay homage to nature and wellness. We are very excited to see these projects come to fruition and contribute to the evolution of Miami’s always-changing skyline.

If you are interested in speaking more specifically about a neighborhood, project or listing, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com

Art Basel 2022 – Despite Crypto Uncertainty, Art Sales Rise. What This Means For Miami Real Estate

 
It hasn’t even been a month since the shocking collapse of FTX rocked an already struggling crypto market and here we are at Art Basel Miami Beach 2022. At Miami’s 2021 art fair, the crypto-bros used their newfound wealth and dreamy-eyed insights for the future to turn up the party wattage to the highest decibel in Miami, an already debaucherous party city on the most excessive week of all of the weeks.

“Out of the blue, all these kids from crypto started coming down and spending a lot of money,” Andrea Vimercati, director of food and beverage at Moxy Hotel group and former director of Groot Hospitality, told the Financial TimesGroot Hospitality operates Liv, Story, and Swan, three major Miami hotspots. “Like, an insane amount of money.”

There were no limits to the excess with cases of the most expensive champagne being delivered to nightclub tables reserved for $50,000 per night. It was so excessive, entire condo developments were sold out with crypto. People were flashing their crypto wallets, as though it was any less cringe-worthy than showing off your bank account.

They’re now gone. With Bitcoin hanging around $57,000 in late 2021, the money was there to throw around and play with. As we inched closer to the unrestricted party that is Art Basel 2022, Bitcoin had sunk to around $17,000. And then, to add insult to injury, FTX suddenly imploded just two weeks before the annual art fair. Yikes.

Everyone involved asked similar questions. What does this mean for crypto? What does this mean for Art Basel sales? What does this mean for the service and hospitality industry that rolls out the unrivaled excess? And of course, what happens to the real estate boom that crypto helped to usher into our vibrant and cultural city?

What is happening to the nightlife and service industry?

Miami’s vibrant nightlife scene is certainly taking a hit in 2022 thanks to the crypto-crash.

“They were ordering 12 or 24 bottles of the most expensive champagne and just showering themselves without even drinking,” Andrea Vimercati, the director of food and beverage at Moxy Hotel group, told the Financial Times. “[The crypto entrepreneurs] wanted to show that they didn’t have any limits.”

Of course it is still Art Basel so the table spends are still astronomical, just dialed down a bit from 2021. It could be that the young, nouveau riche entrepreneurs have matured, or perhaps they are spooked by the FTX collapse and rocky year for crypto. Whatever it is, the crypto wallets are closed.

What is happening with art sales at Art Basel 2022?

While the sponsored yacht parties, NFT stunts, Web3 conferences and metaverse ragers are not as unlimited as they were in 2021, the art sales themselves seem to be back into the forefront of the fair, giving many involved a sign of relief.

“It’s the post-FTX world,” says New York dealer David Lewis in his booth on the fair’s opening day, referring to the collapse of the crypto exchange founded by Sam Bankman-Fried. “The art world has always been really wary of the crypto world,” a wariness, he says, that appears to have been justified. “I think there’s a lot of comfort in the fact that a lot of the ways of doing things that have been going on for years or decades—or if you think of painting, centuries—are back in the lead.”

As tensions mounted, the doors to Art Basel Miami Beach opened to VIP collectors on Tuesday and Wednesday, gallerists were relieved to find sales opening at a steady clip. Collectors from South America, Europe and New York browsed collections with heavy textures and layers, and more traditional forms than the digital pieces that have been more popular in recent years. Pharrell Williams, an Art Basel staple, had his eye on a $100,000 piece made of clay.

In addition to the more tangible pieces, works from iconic artists such as Andy Warhol have also flown from galleries. Floyd Mayweather picked up a total of 10-12 pieces during the VIP portion of Basel. Four of these pieces were by Andy Warhol, and he also grabbed a statue of a fist of burning money. Because he can. The total of his sales climbed north of $3 million before the doors were even open to the public.

“We pre-sold a lot, so the first hour or two is people seeing the pieces,” says Malik Al-Mahrouky, a sales director at Kurimanzutto, a gallery with locations in New York and Mexico City. Its pre-sales included, he says, a painting by Gabriel Orozco priced around $500,000 and two paintings by Roberto Gil de Montes, which sold for roughly $85,000 and $35,000. While English was far and away the dominant language heard in the fair’s aisles, Al-Mahrouky says he is surprised by the number of serious foreign collectors. “There are lots of Europeans this time around,” he says. “Last year there weren’t nearly as many.”

What this tells us with regard to the real estate market…

Using clues we have pulled from the crypto market, hospitality spending, art sales and the overall economy trends, it seems there will certainly be a shift to the Miami real estate market, but that is not necessarily bad news. What I believe we will experience is a  leveling out. Transactions will continue to happen, particularly in the luxury sector. Traditional buyers will be able to compete for properties vs the crypto buyers. The properties that sell will be less flashy and trendy, making way for a more refined space.

Miami is and will always be a desirable location for vacation buyers due to the factors we enjoy even after Art Basel has packed up and headed out. There is amazing culture, a rich culinary scene, never-ending entertainment and nightlife options, and plenty of career opportunities paired with a lack of state income taxes makes us the perfect combination for almost any resident. There really is something for everyone in Miami, and we are excited to cover each highlight in its own blog post.

As we move forward through the rate hikes, inflation and crypto collapse that we experienced in 2022, we expect the market to slow, but only to a more healthy level. Sellers should feel confident that their listings will not languish on the market and buyers should feel confident with their ability to compete for the home or investment they really love.

If you are interested in speaking more specifically about a neighborhood, project or listing, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com

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