Miami is among the most popular destinations among Russians. Now the real estate market is one of the fastest growing and most promising. In the near future in Miami is expected construction boom.
Miami is often called the "Riviera" of the United States. Soft warm climate combined with a convenient location led to the formation of a strong segment of luxury properties in the coastal part of the largest city in Florida.
Applies in this case, one of the "backwaters" - real estate markets in which to invest their funds international businesses during the economic and financial instability - Miami market one of the first in the United States showed an increase in prices after the crisis.
price trends
During the period of the boom in the US real estate market of 1996-2006, Miami ranked fourth on the rise in prices, which for the entire period rose to 214.6%. Despite the fact that the real estate market in Florida has been hit hard during the crisis of 2007-2008 (prices fell by 30-50%), since the middle of 2012 there began a steady growth. Miami maintain its leading position as the largest metropolis of the state.
For 2013 the growth in property prices Miami was 14.1%, adjusted for inflation.
Real estate prices in the central city and suburbs are relatively small. In coastal areas are mainly located objects high price category. They are mainly interested in foreign buyers.
According to the Miami Association of Realtors, the average price of detached houses as first quarter of 2014 was $ 230 000. The average price of apartments in Miami on average - $ 187,000.
Miami is one of the places with the most expensive real estate in the world. However, about 10% of residents of prestigious Palm Beach - Russians. The average cost of luxury properties in the range of $ 6,500 - $ 10,800 per 1 sq. m, the cost of new luxury objects - $ 16 000 - $ 27 000. Prices for condos in Coral Gables and Key Biscayne range from $ 4000 to $ 8000 per 1 sq. m, and the average rental income - 6-8%.
Market supply
Total number of apartments in construction sites, ready for sale in January 2012 in the areas Biscayne Corridor, Sauze Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Fort Lauderdale, Aventura, Servny Miami, Coconut Grove and Key Biscayne is 10 327. Of these, 60% (6063) have already been sold. The index of total absorption on the market an average of 4615 real estate units per year.
Volume in the secondary market Brickell area 18 months ago was about 800 units, and the average price in the secondary market - $ 4316 per 1 sq.m. At the moment, the number of objects in the secondary market is about 390 units, and the average price rose to $ 5392 per 1 sq.m. Volume in the secondary market in the Biscayne Corridor at the moment - about 420 units valued at $ 5661 per 1 sq.m. In the area of Aventura now among active objects on the secondary market - 178 units of the average cost of $ 4370 per 1 sq.m. In coastal areas, the volume of supply - 675 average cost of $ 9870 per 1 sq.m.
New projects and transport infrastructure
Tourism is the main source of income of the city budget. Miami ranks first among the cruise port in the world and is the main cargo port in the United States. A recent report by The Miami Market Report, prepared by ISG World, provides a brief description of the infrastructure and construction until 2020.
Together with the imminent increase in the Panama Canal for the adoption of large cargo ships with a high displacement (up to 18,000 TEUS), many of the world ports ready for renovation for further opportunities to take large vessel. Miami was among the first port cities that have received public funding - $ 220 million to deepen the harbor.
In the Port of Miami next year to finish the project of building the tunnel cost $ 1 billion. The tunnel is 1.1 km long will connect the network of port roads and highways MakAurtur with Dodge Island, where the port is located. Also there will be direct access from the port to the highway I-395. This will greatly reduce the workload of highways in South Florida.
Begun in 2010, the construction of the largest in the history of the Florida Highway I-595 is already 98% completed and is ready for use in the third quarter of 2014. Total project cost - $ 1.2 billion. In addition, in the vicinity of the Port of Miami is expected reconstruction of the major highways I-395, connecting the east and west of Florida, with the result that route I-395 is directly connected to major highways US I-95, which runs on the territory of 15 states. The cost of the project totals about $ 600 million.
International Airport, Fort Lauderdale preparing reconstruction project in the amount of $ 2.3 billion for the increase in passenger traffic in South Florida with 23 million to 30 million passengers a year. The project involves increasing the number of gates from 66 to 97 and increasing the number of runways which will increase traffic volume by 50%.
Infrastructure Culture and Recreation
Parallel construction boom and the rise of the real estate market in Miami is experiencing a real surge of cultural activity. Completion of the project of the Museum Park, which includes two major museum - Museum of Science and Art Museum - in a single park ensemble, turn the project into a center that attracts tourists and scientists and artists. The reconstruction project of the Science Museum, worth $ 165 million and an area of 23,000 sq.m. can break the world record in scale and the introduction of modern technologies in such projects.
Over the past decade Creative Miami Miami Design District on the outskirts of Miami has become the largest cluster of design, fashion and the arts. This area is filled with galleries and restaurants and cafes. In 2014-215, the here planned to invest about $ 300 million to build a luxury promenades.
Christina Menshchikova company "Adveks. Real Estate:
"The cost of residential real estate in Miami continues to grow. The average home can be purchased from $ 230 000, which is significantly higher than in 2013. In the most popular, for the Russian buyer, areas, apartment prices range from $ 350,000 to $ 1 000 000. The real estate market in Miami is stable and, in the next few years, a sharp increase is not expected.
Miami has always been and will be interesting Russian buyers. This is for many reasons. The favorable climate of Miami attracts many tourists, even in the winter, it gives a great opportunity for investors. When buying a residential property, it is advantageous can rent.
Of residential property buyers attracted various condominiums, as they located a large number of entertainment venues (pools, tennis courts, pool, basketball courts, beauty salons and much more). "
Nicolas Billot, director of Barnes International in Miami:
"Miami is now - a very attractive growing metropolis. Furthermore, the Miami presently stored in the last
trends in various fields - medicine, startups in the market, the financial market. A recent report 'Wealth report', prepared by the agency Knight Frank, Miami ranked eighth among the most popular destinations for the super-rich individuals. Leaders in business love this city, and it is known that the property - this is the most reliable investment. Thus, the market is now Miami large number of buyers who pay deal "real money."
Miami market is particularly attractive for Russian buyers, as prices are still much lower than in Moscow and other popular US cities like New York and Los Angeles. In addition, this market is very high growth potential price - at the moment, prices are almost 30% below the peak in 2007. So we expect annual price increase of 5-10% in the next few years.
The growing population makes the demand for property stable and reliable, with high rental yield. Thus, the state of the market is now much more healthy than in a situation of "bubble" in 2007. For example, a few months before the completion of the project at least 50% of the apartments are usually sold out.
Over the next few years, a lack of demand on the market is not, as she is now undergoing construction at least 60 projects in the city and surrounding area. Now Miami - a fast-growing market, where prices are at a reasonable level on the proposal, hence such an interest in the city among international buyers. In particular, Russian buyers are considered to be "the driving force" in the market. "
Miami is often called the "Riviera" of the United States. Soft warm climate combined with a convenient location led to the formation of a strong segment of luxury properties in the coastal part of the largest city in Florida.
Applies in this case, one of the "backwaters" - real estate markets in which to invest their funds international businesses during the economic and financial instability - Miami market one of the first in the United States showed an increase in prices after the crisis.
price trends
During the period of the boom in the US real estate market of 1996-2006, Miami ranked fourth on the rise in prices, which for the entire period rose to 214.6%. Despite the fact that the real estate market in Florida has been hit hard during the crisis of 2007-2008 (prices fell by 30-50%), since the middle of 2012 there began a steady growth. Miami maintain its leading position as the largest metropolis of the state.
For 2013 the growth in property prices Miami was 14.1%, adjusted for inflation.
Real estate prices in the central city and suburbs are relatively small. In coastal areas are mainly located objects high price category. They are mainly interested in foreign buyers.
According to the Miami Association of Realtors, the average price of detached houses as first quarter of 2014 was $ 230 000. The average price of apartments in Miami on average - $ 187,000.
Miami is one of the places with the most expensive real estate in the world. However, about 10% of residents of prestigious Palm Beach - Russians. The average cost of luxury properties in the range of $ 6,500 - $ 10,800 per 1 sq. m, the cost of new luxury objects - $ 16 000 - $ 27 000. Prices for condos in Coral Gables and Key Biscayne range from $ 4000 to $ 8000 per 1 sq. m, and the average rental income - 6-8%.
Market supply
Total number of apartments in construction sites, ready for sale in January 2012 in the areas Biscayne Corridor, Sauze Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Fort Lauderdale, Aventura, Servny Miami, Coconut Grove and Key Biscayne is 10 327. Of these, 60% (6063) have already been sold. The index of total absorption on the market an average of 4615 real estate units per year.
Volume in the secondary market Brickell area 18 months ago was about 800 units, and the average price in the secondary market - $ 4316 per 1 sq.m. At the moment, the number of objects in the secondary market is about 390 units, and the average price rose to $ 5392 per 1 sq.m. Volume in the secondary market in the Biscayne Corridor at the moment - about 420 units valued at $ 5661 per 1 sq.m. In the area of Aventura now among active objects on the secondary market - 178 units of the average cost of $ 4370 per 1 sq.m. In coastal areas, the volume of supply - 675 average cost of $ 9870 per 1 sq.m.
New projects and transport infrastructure
Tourism is the main source of income of the city budget. Miami ranks first among the cruise port in the world and is the main cargo port in the United States. A recent report by The Miami Market Report, prepared by ISG World, provides a brief description of the infrastructure and construction until 2020.
Together with the imminent increase in the Panama Canal for the adoption of large cargo ships with a high displacement (up to 18,000 TEUS), many of the world ports ready for renovation for further opportunities to take large vessel. Miami was among the first port cities that have received public funding - $ 220 million to deepen the harbor.
In the Port of Miami next year to finish the project of building the tunnel cost $ 1 billion. The tunnel is 1.1 km long will connect the network of port roads and highways MakAurtur with Dodge Island, where the port is located. Also there will be direct access from the port to the highway I-395. This will greatly reduce the workload of highways in South Florida.
Begun in 2010, the construction of the largest in the history of the Florida Highway I-595 is already 98% completed and is ready for use in the third quarter of 2014. Total project cost - $ 1.2 billion. In addition, in the vicinity of the Port of Miami is expected reconstruction of the major highways I-395, connecting the east and west of Florida, with the result that route I-395 is directly connected to major highways US I-95, which runs on the territory of 15 states. The cost of the project totals about $ 600 million.
International Airport, Fort Lauderdale preparing reconstruction project in the amount of $ 2.3 billion for the increase in passenger traffic in South Florida with 23 million to 30 million passengers a year. The project involves increasing the number of gates from 66 to 97 and increasing the number of runways which will increase traffic volume by 50%.
Infrastructure Culture and Recreation
Parallel construction boom and the rise of the real estate market in Miami is experiencing a real surge of cultural activity. Completion of the project of the Museum Park, which includes two major museum - Museum of Science and Art Museum - in a single park ensemble, turn the project into a center that attracts tourists and scientists and artists. The reconstruction project of the Science Museum, worth $ 165 million and an area of 23,000 sq.m. can break the world record in scale and the introduction of modern technologies in such projects.
Over the past decade Creative Miami Miami Design District on the outskirts of Miami has become the largest cluster of design, fashion and the arts. This area is filled with galleries and restaurants and cafes. In 2014-215, the here planned to invest about $ 300 million to build a luxury promenades.
Christina Menshchikova company "Adveks. Real Estate:
"The cost of residential real estate in Miami continues to grow. The average home can be purchased from $ 230 000, which is significantly higher than in 2013. In the most popular, for the Russian buyer, areas, apartment prices range from $ 350,000 to $ 1 000 000. The real estate market in Miami is stable and, in the next few years, a sharp increase is not expected.
Miami has always been and will be interesting Russian buyers. This is for many reasons. The favorable climate of Miami attracts many tourists, even in the winter, it gives a great opportunity for investors. When buying a residential property, it is advantageous can rent.
Of residential property buyers attracted various condominiums, as they located a large number of entertainment venues (pools, tennis courts, pool, basketball courts, beauty salons and much more). "
Nicolas Billot, director of Barnes International in Miami:
"Miami is now - a very attractive growing metropolis. Furthermore, the Miami presently stored in the last
trends in various fields - medicine, startups in the market, the financial market. A recent report 'Wealth report', prepared by the agency Knight Frank, Miami ranked eighth among the most popular destinations for the super-rich individuals. Leaders in business love this city, and it is known that the property - this is the most reliable investment. Thus, the market is now Miami large number of buyers who pay deal "real money."
Miami market is particularly attractive for Russian buyers, as prices are still much lower than in Moscow and other popular US cities like New York and Los Angeles. In addition, this market is very high growth potential price - at the moment, prices are almost 30% below the peak in 2007. So we expect annual price increase of 5-10% in the next few years.
The growing population makes the demand for property stable and reliable, with high rental yield. Thus, the state of the market is now much more healthy than in a situation of "bubble" in 2007. For example, a few months before the completion of the project at least 50% of the apartments are usually sold out.
Over the next few years, a lack of demand on the market is not, as she is now undergoing construction at least 60 projects in the city and surrounding area. Now Miami - a fast-growing market, where prices are at a reasonable level on the proposal, hence such an interest in the city among international buyers. In particular, Russian buyers are considered to be "the driving force" in the market. "
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