The yachting community descended on Miami for the annual Miami Boat International Show last month (15-19 February) but property expert Savills are not just seeing superyacht owners in the city for the show. With favourable tax rates, a warm climate and a stunning portfolio of waterfront properties, Miami has become one of the most sought-after destinations for superprime property in the world.
“It all started with Covid,” explains Savills director Rory McMullen, who is head of the North American Desk. “Many Americans left the major cities and fled down to Florida and Miami for a break from city life and an ultimate change in lifestyle. People who were working from home didn’t want to be cooped up without any outdoor space in the middle of the city.”
This trend continued after the pandemic with Florida’s lack of individual income tax proving to be a serious draw for wealthy American and international purchasers. “There’s been a huge migration of wealth across America,” says McMullen. “There's a shortage of properties available for sale and an influx of people to the area, so property prices have risen in respond to this demand.”
In 2022, Miami recorded the highest level of capital value growth, at 25.4 per cent, in Savills Prime Residential Index. In recognition of this surge in demand last November, Savills expanded its relationship with US-based luxury residential real estate broker, The Corcoran Group, to encompass Miami.
This year, Miami’s predicted prime capital value growth is between 4 per cent and 5.9 per cent. Even though that marks a decline on last year’s high it still looks set to be a highly competitive market. “The growth won’t be up there with what it was, as we have to recognise that’s just not sustainable,” says McMullen. “But while growth won’t be as pronounced, we do expect it to continue on an upward trajectory.”
The view from the ground
Eloy Carmenate, associate at Corcoran, is now starting to see the market “supply up” but believes there is still plenty of demand to experience the Miami lifestyle. “It’s such a magical city. It’s probably the only city in the world with an urban beach,” he says. “There is great culture and it’s an interesting and fun place to be. We have got pretty much everything in Miami”.
The healthier supply of properties means that there is a mixture of plots and turnkey properties available in enviable locations. One of the most expensive plots currently on the market is 5930 North Bay Road, which offers a purchaser the chance to build their “dream property” on a two-acre slice of this sought-after neighbourhood. Asking $55,000,000 the plot, which is just a stone’s throw from the La Gorce Country Club, is ideal for superyacht owners with 200 linear feet of water frontage.
For those looking for a new home without the project time, 1061 North Venetian Drive is just weeks away from completion and boasts a contemporary seven-bedroom home designed by Max Strang. The Venetian Islands property is asking $35,000,000 and utilises oversized windows to blend interior and exterior spaces. With more than 100 feet of waterfront the property has been created with a boating family in mind and has standout features including a theatre and roof terrace that offers 360-degree views of Miami.
“It’s a real split between what people want. Some people want the house but there are people who want the land,” says Carmenate. “We did a land deal last year in Golden Beach where we put three plots together and we were able to get $93 million. It was an extraordinary number for that area.”
Superyacht allure
The Miami, Palm Beach and Fort Lauderdale boat shows prove that there is no shortage of yachting interest in Southern Florida and this is also translated into property values. “People that live in Miami want to live on the water, it’s a huge part of the lifestyle,” says Rory McMullen. “I think anyone that is involved in yachting is attracted to that aspect.”
There are multiple options for those that are seeking dockage from a property, as well as easy access into Biscayne Bay and onto the cruising grounds of the Bahamas. An example of this is 2700 North Bay Road, which has 100 feet of prime water frontage, a dock and boat lift and no fixed bridges between the property and the bay. Beyond its yachting credentials, it also offers a thoughtfully designed two-story residence that was fully renovated in 2015. Asking $26,500,000, the estate has a total of 11 bedrooms, including a separate three-bedroom guest house.
Elsewhere on the Venetian Islands, 420 West Rivo Alto Drive also incorporates more than 100 foot of waterfront, also with no fixed bridges, and a spacious outdoor pool and kitchen so that you can enjoy al fresco meals with your vessel in view. Asking $38,000,000, the tropically styled modern residence has mature landscaping and a sophisticated interior with oak and marble floors, Carrara marble accent walls, and a modern gourmet kitchen.
Despite concerns about the global economy, McMullen is seeing healthy demand for properties of this style. “While the top end of the market isn’t immune to global pressures, I don’t expect it to be as impacted,” he says. “We’re seeing supply come back, but there is still not a huge amount available for the best properties in the world.”
To find out more about any of these properties, or about how Savills can help your find property in Miami, please email Rory McMullen directly at rmcmullen@savills.com.
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