Hurricane Irma's Effect on The Miami Real Estate Industry

Despite the potential destruction that was anticipated by Hurricane Irma, Miami, along with most of the South Florida metropolitan real estate markets, were mostly spared from any significant or crippling damage. $38.94 billion of CMBS debt was exposed to potential damage in Florida, with $6.41 billion in Miami alone. Fort Lauderdale held an $4.32 billion exposed as reported by The Real Deal. Cranes were reported down at PMG's 300 Biscayne Avenue and Related Group's GranParaiso and Auberge Beach Residences and Spa in Fort Lauderdale. According to Turnberry Associates CEO Jeffrey Soffer in an interview on CNBC, he doesn't believe that the South Florida real estate markets or prices will take a hit in the long term. “It’s just a way of life. It doesn’t happen that often, and the reality is that Florida’s very well prepared," said Soffer. At the same time Stuart Miller of Lennar Corp. announced that Irma has delayed hundreds of home deliveries. The nation's largest home builder said that close to 700 home deliveries in Florida, George and South Carolina have been impacted. The storm came just as the company was reporting new orders rising 8% year over year. Time will tell, but it is apparent that Miami is on the way back to business as usual where the real estate market has been bolstered in recent years due to both domestic and foreign demand alike. 

Miami Ranks as 9th Most Expensive Rental Market in the United States

Miami has ranked as the 9th most expensive market when it comes to renting in the United States according to Zumper. The average price of 1-bedroom rentals remained the same year over year, at $1,800. The average rate for 2-bedroom units fell by 2% to $2,450. The most expensive places to rent remained Fisher Island at $5,500 for a 1 bedroom unit per month, Park West at $2,375, South Pointe, at $2,300, Oceanfront, at $2,250, Key Biscayne at $2,200, Coral Gable's Industrial Section at $2,150, and Coconut Grove and Brickell at $2,100. The cheapest markets to rent remain Brownsville at $750 per month for a 1 bedroom and Gladeview at $880. The Upper East Side and Bayshore had the fastest increasing rents, both up over 13%. Little Haiti and Allapattah fell by over 11%. 

1 Hotel & Homes Reports Strong First Half of 2017 With $23 Million in Sales

1 Hotel & Homes is reporting a strong first half of 2017 with over $23 million in sales. While many projects have had to readjust their pricing, South Beach has seen some strong closings including a 3 bedroom unit in the Setai which recently closed for $5.5 million and a 3 bedroom penthouse at W South Beach which recently closed for $10.2 million. Notable sales from 1 Hotel & Homes over the period include the closing of Penthouse 1717, a 4 bedroom, 3.5 bathroom residence spread over 3,278 SF of interior living space and 1,907 SF of outdoor space. The unit closed for $6.975 million just five days after hitting the market. Additionally, Penthouse 1706, a 2,552 SF, 3 bedroom and 3.5 bathroom penthouse closed for $5.45 million in June; as well as Penthouse 1604, a 1,907 SF, 3 bedroom and 3.5 bathroom penthouse, which sold for $3.4 million.

Tour the Newly Unveiled Penthouse 1612 of 1 Hotel & Homes Designed by Artefacto

1 Hotel & Homes is located on 600' of pristine beachfront and an entire city block of Collins Avenue. 1 Hotel & Homes South Beach features 155 private residences atop a 425-key luxury resort. 1 Hotel & Homes South Beach is a unique, eco-friendly, LEED-Certified oceanfront property inspired by nature and crafted from sustainable materials. Residences feature interior design by award-winning Brazilian architect Debora Aguiar, and the penthouses at 1 Homes feature top-of-the-line Artefacto furnishings. The interiors boast custom Italkraft kitchens with imported Italian silver travertine, white quartz countertops, Wolf appliances, Dornbracht faucets and trash, composting and recycling bins. Owners at 1 Hotel & Homes South Beach can enjoy an array of 5-star amenities including 4 oceanfront swimming pools, private residence entrance staffed with 24-hour concierge services and valet parking, beach club, a Tesla house car service; pre-arrival kitchen and pantry stocking with a local, organic option; in-home natural care botanical service and eco-conscious housekeeping and linen service, access to three restaurants and bars from award-winning chef Tom Colicchio, including Beachcraft, and a rooftop pool and restaurant-bar with panoramic views of the Atlantic Ocean and Miami skyline. Remaining inventory ranges in size from 1,694 square feet to 4,207 square feet and is priced from $3.8 million with exclusive sales and marketing by Douglas Elliman Development Marketing. 
 
“Discerning buyers from across the globe continue to be attracted to the eco-conscious healthy lifestyle one can only find here,” said Richard LeFrak, LeFrak Chairman & CEO. “1 Hotel & Homes combines stunning fully-designed, turn-key residences with five-star resort amenities that include the Bamford Haybarn Spa, the Spartan gym, exquisite dining, aqua-blue beaches and the most beautiful panoramic views of the city and the Atlantic Ocean. 1 Hotel & Homes rewards the discriminating buyer.”

Tour the Newly Unveiled Penthouse 1612 of 1 Hotel & Homes Designed by Artefacto

Featured Listing: Tour the Newly Unveiled Penthouse 1612 of 1 Hotel & Homes Designed by Artefacto

Colombia Tops Foreign Investment List as Miami Sees Surge of New Interest Amongst Brazilian Buyers

2017 has seen a surge of new interest amongst Brazilian buyers after they pulled back in 2015 and 2016, while also seen continued strength from Colombian buyers. Miami has long been a common home for South American flight capital, as wealthy South Americans seek to move their assets out of their countries due to crime and political instability. Colombia has seen an increase in flight capital and Miami has seen a spike in interest from their wealthy buyers over the past several years as their government formally ratified a peace deal with FARC, a guerrilla activist group,  after it was rejected by voters (On June 27, 2017, FARC officially demilitarized and handed over their weaponry to the UN). Brazilians have seen a volatile economy, crime and political turmoil effect their country. Unfortunately these same political factors, along with a strengthening Brazilian Real against the dollar put a slowdown on Brazilian buyers in Miami over the past 2 years (2015, '16). Now amid further uncertainty, many wealthy Brazilians have once again set their sites on moving their assets to the United States via Miami.

According to the MIAMI Association of REALTORS, Colombia leads all foreign countries in searches for Miami real estate, followed by Venezuela and Brazil. Colombia and Venezuela remained unchanged year over year as Brazil moved up from 5th, passing the United Kingdom and Argentina. According to Mansions Global, Turnberry Ocean Club is reporting that 21% of their international buyers have been Brazilian and One Thousand Museum is reporting that over 20% of their pre-construction buyers are Brazilian. Three Hundred Collins has seen 25% of their current pre-construction sales go under contract to Brazilian buyers and the building is over 80% sold.

“As Miami evolved from a tourist city to a global metropolis, we’ve seen more diversified foreign home buyers search and buy properties here. It’s no longer just South America. It is home buyers in India, China, Turkey, France and other countries who want to live the Miami lifestyle,” said Christopher Zoller, 2017 MIAMI Chairman of the Board. 

Top 10 Countries Visiting Miamire.com in March 2017:

1. Colombia
2. Venezuela
3. Brazil
4. Argentina
5. India
6. Canada
7. Philippines
8. Dominican Republic
9. France
10. Spain

Miami is Second-Fastest Growing Major City in America in 2016

According to Census data, Miami was the second-fastest growing major U.S. city in 2016. Miami's population grew 2.9% from July 1, 2015 to July 1, 2016. The city added 12,715 people which led to population growth to 453,579 from 440,864. Since 2010 Miami's population has grown 13.5%. Seattle was the country's fastest growing city at 3.1%. The Miami Metropolitan area has an estimated 5,400 people moving into South Florida per month. Miami is the 4th most densely populated major city following New York, San Francisco and Boston.