The 2024 Douglas Elliman | Knight Frank Wealth Report Is Here – Tides Are Changing In Miami Posted on March 6, 2024March 8, 2024 by Sarah Elles Boggs 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. 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. Rendering of the Ritz Carlton/Sagamore South Beach 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 | 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 Posted on March 5, 2024March 7, 2024 by Sarah Elles Boggs 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 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. 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 | 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.
The Capital Of Capital: Miami’s Luxury Real Estate Market Experiences Double-Digit Gains Posted on May 16, 2023May 18, 2023 by Sarah Elles Boggs While the majority of the world’s luxury real estate markets are experiencing their first losses since the 2008 financial crisis, Miami surges ahead. According to a recent study undertaken by Knight Frank and published in Mansion Global, Miami is the only city in the United States to experience any gains at all, with local luxury real estate prices rising 11% from the first quarter of 2022. The only city in the world with larger luxury real estate price increases than Miami was Dubai. “The slowdown in growth has overwhelmingly been driven by sharply higher interest rates following a recent tightening in global monetary policy,” said Liam Bailey, Knight Frank’s global head of research, in the report. Due to low interest rates, the obvious favorable climate, and the attractive tax climate, the Miami luxury real estate market was already on the upswing when COVID hit in 2020. During this time, as we were all in lockdown, many realized that not only is Miami financially a great choice, the lifestyle is far richer than depicted in the media. While the vibrant nightlife and tourism communities are certainly there, Miami is also a lovely place to raise a family and conduct business. Rendering of Rivage Bal Harbour Porte Cochere Remote workers began to choose Miami. Celebrities such as Tom Brady and Gisele Bündchen moved their family to Miami Beach, as did Jared and Ivanka Kushner. Around this time, Mayor Suarez was deep in the throes of his mission to make Miami an international epicenter of not only lifestyle, but business as well. His mission has been successful, the Magic City is now a hotspot for tech companies as well as the venture capital elite. Starwood Capital and Citadel are moving their headquarters to Miami and contributing to the thriving luxury real estate market as executives snap up homesteads for their families. Record-setting deals have been inked at a regular pace since the pandemic began to clear. We are now a true “Capital of Capital.” Is there a downside? Of course, as with any astronomical growth, there are growing pains. Inventory shortages have plagued us for a few years now, causing prices to increase further and pricing locals out of their own market. Supply chain issues cause delays in the delivery of new luxury residential towers. Even the private school systems are creaking under the pressure of the influx of new full-time residents. Fiancial Times has reported that so many families are relocating from Manhattan, our private schools are even more competitive than ever. Legacy families are being left behind as wealthy New Yorkers bring their private school bloodsport games down to Florida. For many families, there is no way to compete. One private school in Palm Beach received an $18 million gift from a newcomer. Naturally, his children were admitted. There is even talk from some of New York’s more prestigious private schools to open satellite campuses in Miami to accommodate these expat Manhattanites, but this takes time. For now, we will have to battle it out for the slots available in Ransom Everglades, Belen Jesuit, Miami Country Day and others of the sort. The Shore Club Residences Terrace View Looking Forward… As we adjust to the new neighbors and the new levels of density, there are so many beautiful towers to look forward to. The Perigon Miami Beach is active in their sales process and it is going very well. The Shore Club Residences in Miami Beach is also performing well. On the mainland, Villa Miami and Edition Residences Miami Edgewater are quite busy, with sales swiftly being completed. Overall, things look bright. There is no end in sight for the Miami luxury real estate boom of 2023 as long as Mayor Suarez continues to deliver a favorable business climate to match our lovely weather, culture and tax scenario. After the growing pains work themselves out and these new towers are delivered, we really will be sitting pretty and those who thought to buy in during the growing pains will have fatter pockets to show for it. To speak more specifically about an investment or if you need/wish to move, 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. Knight Frank Prime Global Cities Index Q1 2023 via Mansion Global
The 2023 Douglas Elliman | Knight Frank Wealth Report Delivers Promising News For Miami Posted on February 28, 2023March 2, 2023 by Sarah Elles Boggs Knight Frank Residential, in partnership with Douglas Elliman, has released its 2023 Annual Wealth Report which includes some bright news for the Miami market. This comes as a relief since most metropolitan areas in the United States are in a season of plummeting sales and sales volume and Miami is holding strong. Here’s why. For starters, the price per meter for luxury properties is still quite affordable when compared to other major metropolitan areas around the globe. At 64 square meters per $1 million USD (689 square feet), Miami offers the most space per dollar of the major cities in the United States, adding also a favorable tax climate and continued demand for housing. To put this into perspective with $1 million USD, you could purchase a 689-square-foot residence in Miami, or if you needed to live in New York, you would only be able to purchase a residence with 355 square feet. Essentially Miami is taking away buyers from New York and Los Angeles, where residents not only pay more per square foot but also are taxed at a higher rate than in the Sunshine State. Douglas Elliman Knight Frank Wealth Report 2023 Price per Metre Another key factor of Miami’s growth is the Prime Price Forecast, which predicts which locations should see an increase over the next 12 months. Trailing only Dubai, Miami is the top city in the United States and second in the world. It is expected to see a 5% increase of value over the next 12 months, considering we do not have to contend with another major market disruptor such as COVID. Douglas Elliman Knight Frank Wealth Report 2023 Prime Price Forecast Speaking of COVID, this is the first year that we have a full data set of behavior in the post-COVID world and things have been shaken up considerably. Destination locations such as Miami area more heavily in demand due to ease of access and connectivity, with an amazing climate and lifestyle offerings. The open markets of America and lack of conflict also work in our favor when compared to Asian or many European and Middle Eastern areas where residents might be taxed more heavily and under greater political control. The 2023 Wealth Report also demonstrates the fact that Miami is officially the top US city where millionaires are buying second and third homes. In fact, residential real estate remains the top investment for HNWI (high net worth individuals). Douglas Elliman Knight Frank Wealth Report 2023 Portfolio Make Up Knight Frank Residential is the premiere international luxury real estate firm that individually operates across Europe, Asia, Africa and Australia. A partnership was formed years back between Knight Frank Residential and Douglas Elliman, the highest-grossing luxury real estate firm in the United States, that was founded in New York City in 1911. Joining forces, the two companies provide a synergy to high net worth and ultra high net worth individuals to service their property needs with 523 offices in 60 countries across 6 continents. To peruse the 2023 Douglas Elliman | Knight Frank Wealth Report in its entirety, it can be downloaded here. 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, Senior 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.
What To Expect In Miami’s Luxury Real Estate Market During 2023 Posted on December 5, 2022December 12, 2022 by Sarah Elles Boggs 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 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.
Knight Frank 2020 Global Wealth Report Posted on March 6, 2020April 14, 2020 by Michael Light Knight Frank Residential, the largest real estate consultancy firm in the world, in connection with its exclusive partner Douglas Elliman Real Estate, the #1 Brokerage in Manhattan and Miami Beach and top luxury firm in the U.S., released their 2020 Wealth Report, which reflects the global perspective on prime property and investment, including key wealth trends and property hotspots around the world. The Wealth Report examines investment trends covering almost 100 countries and 100+ cities, including what $1M USD buys you around the world. The Knight Frank 2020 Wealth Report gives our clients insight on what the next 12 months has in store for us based on happenings from 2019. Moreover, the multitude of global economic and political issues continue to be unresolved and have become even more complex in many countries. Nevertheless, we remain optimistic about 2020 because while there may still be challenges, there will be considerable opportunities for many as the markets continue to shift. In this year’s edition of The Wealth Report, we highlight the residential and commercial markets around the globe that offer great investment opportunities for those looking to purchase real estate. Additionally, what’s even more interesting is that this year’s investment trends are dominated by more virtuous investments than the normal “bling,” some of which include: impact investing, wellness and “ESG” which is an acronym standing for environmental, social and governance. DOWNLOAD: Knight Frank 2020 Wealth Report Key Takeaways From The 2020 Wealth Report: The global Ultra-High-Net-Worth Individuals (“UHNWI”) population is forecast to rise 27% over the next 5 years, which is an increased prediction from the year prior. However, the rapidly changing geopolitical and regulatory environment, along with the shifting societal attitudes toward wealth, will require thoughtful reassessment of what it means to be wealthy. The United States dominates the rankings with 240,575 UHNWIs, more than Europe and Asia combined, accounting for almost half the global total. Property makes up the largest proportion of investment portfolios held by UHNWIs. Equities comes in 2nd at 23%. New York and London remain the most dominant cities for UHNWIs. 80% of UHNWIs are dedicating more of their time and money to their own well-being. 78 of the 100 prime residential locations we track saw positive or flat price growth in 2019. Miami registered a 2.3% overall growth. 21% of UHNWIs are planning to buy a new home in 2020, according to a respondent’s survey. In a world of low yield, commercial real estate attracted US$333 Billion of private capital in 2019. Investors are seeking diversification opportunities while becoming highly analytical, increasingly willing to partner for scale and acutely attuned to the underlying sustainability of the assets they hold. Although our Luxury Investment Index dipped slightly in 2019, committed collectors continue to pay record prices for the most wanted asset classes. Additionally, philanthropy is arguably the ultimate passion investment and concern for the health of the planet is increasingly driving UHNWI endeavors. How many square feet/square meters can $1 Million USD buy you in the top luxury markets in the world? Below is a list of the top 20 luxury market cities worldwide broken down into square feet. Notice Miami’s location on the chart, which shows the value proposition of buying real estate in Miami instead of other top destination cities. For instance, you only get 344 square feet of space in NYC per $1 Million USD compared to 969 square feet in Miami. The value proposition for tropical Miami coupled with the fact that Miami has reinvented itself as a creative tech hub, an international cultural destination, a financial banking hub and a low tax status destination….screams….BUY REAL ESTATE IN MIAMI! Monaco: 172 sq/ft (16 sq/m) Hong Kong: 226 sq/ft (21 sq/m) London: 323 sq/ft (30 sq/m) New York: 344 sq/ft (32 sq/m) Singapore: 377 sq/ft (35 sq/m) Geneva: 409 sq/ft (38 sq/m) Los Angeles: 420 sq/ft (39 sq/m) Paris: 484 sq/ft (45 sq/m) Sydney: 538 sq/ft (50 sq/m) Shanghai: 624 sq/ft (58 sq/m) Tokyo: 700 sq/ft (65 sq/m) Beijing: 732 sq/ft (68 sq/m) Berlin: 829 sq/ft (77 sq/m) Miami: 969 sq/ft (90 sq/m) Melbourne: 1,033 sq/ft (96 sq/m) Mumbai: 1,098 sq/ft (102 sq/m) Istanbul: 1,1238 sq/ft (115 sq/m) Dubai: 1,668 sq/ft (155 sq/m) Cape Town: 1,873 sq/ft (174 sq/m) Sao Paulo: 2,174 sq/ft (202 sq/m) Relative Values of Top 100 Prime Cities Objects of Desire for 2020 Go Hand-In-Hand With the Top Sales of 2019 Below is a graph highlighting the top objects of desire in on DE | KF’s Luxury Investment Index, which shows that rare whiskey has grown in value the most over the last 10 years at +564% and increased by +5% in the past 12 months, while Hermes handbags prove their worth in the luxury market with a +13% growth in values over the past 12 months. Objects of Desire Further, future trends are generally forecasted based on the past, so it is important to note that in 2019, there were some eye-catching and surprising auction sales that took place. For instance, a 1986 stainless-steel sculpture of a rabbit by Jeff Koons broke the auction record for any work by a living artist when it was sold in May for over US$ 91 Million. Check out the infographic below to see more! Most Wanted If you are interested in learning about the local real estate market in Miami or Miami Beach, please contact Broker Michael Light. Michael is the Senior Director of Luxury Sales at Douglas Elliman Real Estate, a member of the exclusive Sports & Entertainment Division at Douglas Elliman and a Global Agent for Knight Frank Residential. You may reach Michael directly at (786) 566-1700 or michael@miamiluxuryhomes.com.
Knight Frank 2019 Wealth Report Released Posted on March 12, 2019 by Michael Light Knight Frank Residential, the largest real estate consultancy firm in the world, in connection with its exclusive partner Douglas Elliman Real Estate, the #1 Brokerage in Manhattan and Miami Beach and top luxury firm in the U.S., just released their 2019 Wealth Report, which reflects the global perspective on prime property and investment, including key wealth trends and property hotspots around the world. The Wealth Report examines investment trends covering almost 100 countries and 100+ cities, including what US$1M buys you around the world. The 2019 Wealth Report gives our clients insight on what the next 12 months has in store for us. The multitude of global, economic and political issues continue to be unresolved and have become even more complex in many countries. Nevertheless, we remain optimistic about 2019 because while there still may be challenges, there will be considerable opportunities for many as the markets continue to shift. In this year’s edition of The Wealth Report, we highlight the residential and commercial markets around the globe that offer great investment opportunities for those looking to purchase real estate. DOWNLOAD: 2019 Wealth Report Key Takeaways From The 2019 Wealth Report: The global Ultra-High-Net-Worth Individuals (“UHNWI”) population is forecast to rise by 22% over the next 5 years, meaning that an additional 43,000 people will be worth more than US$30 Million by 2023. 2019 will be the year the number of US$ millionaires globally exceeds 20 million for the very 1st time. Whisky storms to the top of DE | KF’s Luxury Investment Index with 40% annual growth. Existing UHNWI’s expect their wealth to increase over the next 12 months, with confidence most marked in the U.S. where 80% expect to be better off. 63% of the world’s ultra-high-net-worth population saw an increase in their wealth in 2018. Home to around 33,300 millionaires, we expect Miami to record prime price growth of 5% in 2019, outperforming a number of other key U.S. cities. Prices are rising from a comparatively low base, new investment in the form of the Brightline train is boosting the local economy and Florida’s low tax status may spur some U.S. residents to move to the sunshine state in the wake of the new State and Local Tax (SALT) deductions. Did you know that Miami is the top city in the U.S. to buy luxury real estate, based on value proposition? Check out the graph below for a quick look at the relative value that Miami offers compared to other major cities in the U.S. and around the world. How many square feet/square meters can US$1Million buy you in the top luxury markets in the world? Below is a list of the top 20 luxury market cities worldwide broken down into square feet. Notice Miami’s location on the chart, which shows the value proposition of buying real estate in Miami instead of other top destination cities. For instance, you only get 334 square feet of space in NYC per US$1Million compared to 1,001 square feet in Miami. The value proposition for tropical Miami coupled with the fact that Miami has reinvented itself as a creative tech hub, an international cultural destination, a financial banking hub and a low tax status destination….screams….BUY REAL ESTATE IN MIAMI! Relative Values – How much US$1 Million will buy in key cities around the globe Monaco: 172 sq/ft (16 sq/m) Hong Kong: 237 sq/ft (22 sq/m) New York: 334 sq/ft (31 sq/m) London: 334 sq/ft (31 sq/m) Singapore: 388 sq/ft (36 sq/m) Los Angeles: 420 sq/ft (39 sq/m) Geneva: 441 sq/ft (41 sq/m) Paris: 495 sq/ft (46 sq/m) Sydney: 560 sq/ft (52 sq/m) Shanghai: 614 sq/ft (57 sq/m) Beijing: 721 sq/ft (67 sq/m) Tokyo: 721 sq/ft (67 sq/m) Berlin: 786 sq/ft (73 sq/m) Miami: 1,001 sq/ft (93 sq/m) Melbourne: 1,044 sq/ft (97 sq/m) Mumbai: 1,076 sq/ft (100 sq/m) Istanbul: 1,173 sq/ft (109 sq/m) Dubai: 1,539 sq/ft (143 sq/m) Cape Town: 1,905 sq/ft (177 sq/m) Sao Paulo: 2,153 sq/ft (200 sq/m) Objects of Desire for 2019 Go Hand-In-Hand With the Top Sales of 2018 Below is a graph highlighting the top objects of desire for 2019 based on DE | KF’s Luxury Investment Index, which shows that rare whiskey is the hot new trend, as it is expected to have 40% annual growth. Further, trends are usually forecasted based on the past, so it is important to note that in 2018, a bottle of Macallan 1926, hand painted by Michael Dillon sold for US$1.5 Million, making it the most expensive bottle of whiskey to ever sell. WOW! 2019 Objects of Desire – 12 Month Change in Asset Value & Top Sales of 2018 Knight Frank and Douglas Elliman Released Additional Reports Providing Insight on Other Key Takeaways from our Global Market. Urban Futures 2019 This is the 1st edition of Urban Futures, which is a report on the increasingly prominent topic of housing affordability around the world. Although this has become a critical issue for cities all around the globe, it is often viewed not on the forefront of our discussion. This Urban Futures report lays out an overview of solutions that are currently being implemented in some of the leading cities around the world and gives insight to those city authorities that have not yet begun this process. DOWNLOAD: Urban Futures 2019 The Global Ultra-Prime Market 2019 This inaugural edition of The Global Ultra-Prime Market 2019 is a report showcasing the global assessment of ultra-prime residential markets. This information is based on market data gathered from across the world to confirm the actual extent of the world’s top-tier residential locations. DOWNLOAD: The Global Ultra-Prime Market 2019 Prime Global Forecast 2019 The Prime Global Forecast is a resourceful report providing insight on how the economic landscape around the globe is changing and its effects around the world. As monetary policy normalizes and geopolitical jitters increase in many countries, we must remember with risk, comes great opportunity. DOWNLOAD: Prime Global Forecast 2019 If you are interested in the local real estate market in Miami and Miami Beach, please contact Broker Michael Light. Michael is the Senior Director of Luxury Sales and a member of the exclusive Sports & Entertainment Division at Douglas Elliman Real Estate. You may reach Michael directly at (786) 566-1700 or michael@miamiluxuryhomes.com.
Knight Frank 2018 Wealth Report Released Posted on March 31, 2018January 25, 2019 by Michael Light Knight Frank Residential, the largest real estate consultancy firm in the world, in connection with its exclusive partner Douglas Elliman Real Estate, the #1 Brokerage in Manhattan and Miami Beach and top luxury firm in the U.S., just released their 2018 Wealth Report, which reflects the global perspective on prime property and investment, including key wealth trends and property hotspots around the world. The Wealth Report examines investment trends covering almost 100 countries and 100+ cities, including what US$1M buys you around the world. DOWNLOAD : 2018 Knight Frank Wealth Report Key Takeaways From The 2018 Wealth Report: Did you know the number of people with $50m+ in net assets increased by 10% in 2017, taking the total to 129,730 individuals globally? 2017 saw the most expensive painting ever sold with Leonardo da Vinci’s Salvator Mundi going for $450 million, smashing the previous world record set by Picasso’s $179 million Women of Algiers in 2015. Did you know New York leads all global cities in households earning $250k+ per year, with more than 1,167,000 counted. Los Angeles comes in 2nd place with 637,000. New York tops the overall ranking in our City Wealth Index – with London coming in close 2nd for investment and future rankings. In Aspen, the residential prime property market – recognized as the top 5% of the market by price – recorded the 3rd largest increase worldwide in 2017, with a 19% year-over-year growth. Did you know values in Miami’s Prime Property Market increased 2.2% in 2017? See how Miami fared compared to other major cities in The Wealth Report. Did you know that Miami is the top city in the U.S. to buy luxury real estate, based on value proposition? Check out the graph below for a quick look at the relative value that Miami offers compared to other major cities in the U.S. and around the world. Relative Values | How many square meters of Prime Property US$1M Buys Across the World DOWNLOAD : 2018 Knight Frank Wealth Report If you, or someone you know, are interested in the local real estate market in Miami and Miami Beach, please contact Michael Light, Founder/Owner of the Miami Luxury Homes Group at Douglas Elliman. You may reach Michael directly at his office at (305) 350-9842, on his cell phone at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.