The city of the sun has become a favorite place for billionaires. And his arrival has had a significant impact on real estate.
Living in one of those Biscayne Bay mansions, or one of the ultra-luxury condos in downtown Miami, has its price. And a very high price.
Miami is the city in the world where luxury residential rentals have increased in price the most in the last year.
Between the third quarter of 2020 and the third quarter of 2021, Miami luxury home prices increased about 26 percent. The report analyzes the change in the costs of the most desirable and expensive homes in a given location. That is the 5 percent at the top of the real estate pyramid in the leading 46 cities of the world.
The analysis has been carried out since 2007, and it is the first time that Miami is number one in this ranking.
” The search for spacious homes on the coast combined with Florida’s low taxes acted as a magnet for a new category of remote workers in the United States, ” the report states.
But it wasn’t just luxury rentals that exploded in Miami. In the middle of the year, it was known that between the first and second quarters of 2021, the number of property sales over 10 million dollars in Miami doubled.
Worldwide, the price of luxury rentals rose by a world average of 9.5 percent. Eighty-five percent of the cities in the study saw a rise in luxury rental prices.
Other markets, besides Miami that has seen a substantial increase in the price of their luxury rentals are Seoul, in South Korea, whose average increases are around 22 percent, followed by Shanghai and Moscow, tied with 20, 5 percent increase, and Toronto, in Canada, with a 20.4 percent increase.
Four Chinese cities in the study saw a decline in prices between the second and third quarters of the year. According to experts, the scandal with one of the leading developers in the Asian country is behind this decline.
” The Evergrande crisis, certain government measures, and new localized outbreaks of COVID 19 contributed to the slowdown in the price of luxury rentals in China,” the Knight Frank report indicates.
Historic cities in this ranking, such as London, saw just a 0.7 percent increase in the prices of their luxury rentals. However, the English capital was hit hard by the pandemic, which may be the factor that numbed the luxury real estate market there.
New York saw just a 1.7 percent increase in these types of rents. Thus, the financial center of the United States, and the world, are experiencing a phenomenon as a consequence of remote work. The restrictions due to COVID, high taxes, and the often severe weather have made thousands of residents of the Big Apple who can work remotely decide to seek new horizons. There, the Miami phenomenon is largely explained.