Since the pandemic, prices in Miami have moved in one direction, almost vertically.
Buyers, wary of the threat of a bubble, are currently holding their breath. UBS’s 2024 Global Real Estate Bubble Index reveals that “Miami shows the highest bubble risk among the cities surveyed.” Miami beat Tokyo and Zurich to take first place. “Driven by a booming luxury market, prices in Miami have increased by almost 50% in real terms since the end of 2019, with 7% of that occurring in the past four quarters.”
But brokers say smart money has nothing to fear. There are plenty of bubble-proof properties out there if you know where to look. “Waterfront single-family properties are something that cannot be duplicated,” says Ana Teresa Rodriguez, founder and CEO of Coldwell Banker Realty’s ATR Luxury Homes Group. “Whether it’s a canal, a bay, or the ocean, being on the water is a win.”
As examples, she points to Jeff Bezos’ big waterfront deal at Indian Creek and the $80 million mansion David and Victoria Beckham recently purchased on the Miami Beach waterfront. . “They know where to put their money,” she says.
Rodriguez recommends buying in lesser-known areas, such as Bay Point, Miami Shores, and the Old Cutler Bay area of Coral Gables, to make a profit or weather the financial storm. She’s particularly bullish on Bay Point, listing Casa Exumas at 4241 Palm Lane for $20 million.
The six-bedroom, seven-bathroom, 6,334-square-foot home features 85 feet of waterfront and a private dock. “If I were to invest my money right now, I would invest it in Bay Point,” she says.
The waterfront property at 9320 Gallardo Avenue in South Old Cutler Bay has eight beds, nine bathrooms and 8,360 square feet and is asking $16.9 million for Douglas Elliman’s Lourdes Alatriste. There is. It features an attractive 100-foot dock and direct ocean access.
Elliman broker Lucy Assouline, on the other hand, is a bubble skeptic. “In Sunny Isles and Brickell, you probably have a bubble because you have a lot of density and a lot of inventory. But you don’t see that in areas where there’s less inventory.”
But to avoid bubble issues, focus on homes in areas where inventory is already tight and likely to become tight, such as Bal Harbour, prime Miami Beach, and the (four) Sunset Islands. She recommends that. “These areas have more retail, more hospitality, more lifestyle, but not as much housing,” she says.
In Sunset Island III, 1510 W. 23rd St. is on the market with Julian Johnston of Corcoran Group for $35 million. Just steps away from Sunset Harbor Shops restaurants and retail, this 6,290-square-foot property has five beds, six bathrooms, 90 feet of waterfront and a private dock. It has all the elements to make sure it stays afloat. If the bubble bursts.
