Miami (Florida) – one of the most popular among foreign buyers of real estate cities in the U.S. for life and investment. Thus, according to the local association of realtors (Miami Association of Realtors), in 2015, foreigners bought here more than 10 thousand objects worth more than 6 billion dollars, which amounted to 22% of the total volume of transactions in this market in the year. In addition to developed infrastructure, the main factors contributing to the growth in demand for real estate in Miami, are:
- the best conditions and prospects for doing business in the region;
- a large selection of new properties, such as these new condos for sale.
- high demand for rent.
Excellent conditions for business
Miami is one of America’s largest business and financial centers. In terms of GDP, this urban agglomeration is comparable to Greece. Miami is the second largest city in the U.S. after Austin (Texas) in the ranking of cities with the fastest growing economy, made by Wallethub. Miami is second only to New York City in terms of the number of offices of major international banks in the U.S., and more than 60 banks and about 100 investment companies and corporations from the Fortune Global 500 have their headquarters here. One of the main reasons to attract investors to the city is the taxation system: Florida has no tax on personal income, as well as no tax on luxury.
Due to its geographical location, Miami is also an investment hub from South America. The city has the main offices of Latin American departments of 1,400 multinational corporations. Among other things, Miami is the largest transport hub in the south of the United States. The city’s international airport is the second largest in America with a passenger flow of about 40 million people a year. The local port is the main logistical center for trade with Latin America, and the ongoing port modernization work will soon accept large ships passing through the Panama Canal, which will further increase the importance of Miami, increasing U.S. trade with the Asia-Pacific region.
Construction boom
As part of the “Miami 2020” program, new construction is actively underway in the city. Between 2016 and 2017, a record number of new buildings were built in Brickell, Edgewater, Downtown Miami, Design District and Sunny Isles Beach. In addition to residential buildings, there are dozens of office and shopping malls under construction in Miami. One of the largest projects in the history of the city – a block of skyscrapers Brickell City Centre – offered its tenants 24.2 thousand square meters of office space. The city is also developing and modernizing its infrastructure. In the near future in Miami will begin construction of the federal highway I-395, as well as a tunnel and a bridge leading from port to city.
High demand for rent
In Miami it is profitable to buy real estate for rent. Here is a very high demand for rental housing, and both on the part of tourists and among the constantly growing population, which only in the last 5 years has increased by 6%. Miami is also one of the most popular tourist destinations in the United States. The city is visited by more than 15 million people annually. At the same time Miami ranks second after Los Angeles among the agglomerations of the United States with the most expensive rented housing. Renting a one-bedroom apartment here costs an average of $1,800 per month.
According to analysts, ROI (Return of Investments) for Miami is between 3% and 5% per year. Rental income in the popular areas of Coral Gables and Key Biscayne ranges from 4.8% to 6% per year, and in the less respectable but promising area of Aventura is best to rent small studios, which bring up to 9% per annum. So luxury real estate in miami is always a great solution.