Traditionally one of the top markets for Latin American investors, Miami is now gaining popularity in Asia, especially with Hong Kong property investors. For example, with several completed projects and Phase One of the Brickell City Centre opening in 2015, Hong Kong developer Swire Properties has shown again and again that they see significant long term investment opportunities in the Miami real estate market.
Famed for its pristine beaches, clean water and sunny weather, Miami has long been a go-to vacation and leisure destination. However, the city of sun and sand has been marked by an almost erratic real estate market—a market that goes hand in hand with bubbles and crashes. From the years 2000-2006 Miami experienced a steep increase in real estate prices. Speculation and development caused the market to have one of the largest bubbles in the US, ending with a sharp downturn in real estate prices during the recession in the years 2008-2009.
Miami’s real estate market is booming once again, but this time it seems healthier than before. New infrastructure, favorable taxes, connections with Latin America and interesting pricing have attracted major corporations and international investors. Florida is now home to over 70 private equity and hedge fund management companies. After New York, Miami has the second highest number of international banks for an American city.
Miami has always been a hub for trade with South America – it is also positioned closest to the East Coast port to Asia and the closest American port to Africa. As for the real estate market, Miami prices remain up to 33% below the peak in most areas. Water front property sells for 300-500USD per square foot in some areas. Even with all of the new construction and development, some claim that there is still a lack of supply in the market.
“Invest Miami 2020”
The city of Miami is extensively investing in its infrastructure. Private companies are also heavily investing in new condo developments and shopping malls. Swire’s ongoing project (“Brickell City Centre”) is a 1 billion USD investment that will feature 5.4 million square feet of office hotel retail and entertainment space.
Along with new museums, opera house and world-class resorts, Miami is preparing itself as the city of the future. The One Thousand Museum by world famous architect Zaha Hadid will be just one of the stunning futuristic, new buildings on the Miami Skyline. The Miami port is also undergoing massive expansion – with the multi-billion dollar expansion of the Panama Canal underway, Miami has begun dredging ports in order to accommodate the expected increase in size and traffic of ships coming to its port.
American and foreign investment have boosted Miami’s economy and positioned it as a leading world city. Its proximity to Asia, South America and Africa makes it a key location for trade and commerce. The city is expected to experience a huge increase in population driven by the creation of new jobs and opportunities. While real estate prices remain low at the moment, investors place confidence in the market in the coming years.
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