Raanan Katz RK Centers Miami

Raanan Katz on Miami Commercial Real Estate

The Current State of Miami Real Estate

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Raanan Katz Miami Real EstateLocal real estate industry leaders recently gathered in Miami to discuss the real estate market in South Florida. Interest in South Florida real estate from both the United States and abroad has made the real estate market attractive for developers. Due to the increased interest in real estate development in Miami, the luxury market has followed suite and thrived along with the increasing real estate costs. Commercial real estate prices have skyrocketed, as they have doubled over these last six years.

Although the real estate market is looking great in Miami, as buyers are making 50% down payments on condos, experts still believe that there will be volatility. As Miami is becoming a hot bed for real estate, and prices are soaring, developers are turning their focus on under developed neighborhoods with potential expansion. Developer’s favorite so far is the Biscayne Boulevard corridor. The area is right on the bay, close to the beach, has a major road, and there is plenty of empty land for real estate development.

There have also been discussions to create public green spaces in the Miami-Dade area.  One potential project in the rumor mill is a 10-mile bike path under the Metrorail line that goes from Dadeland to Brickell Station. There is plenty of unused space in the area, and public officials are interested in re-purposing that land to give back to their community and increase the allure of living in South Florida. Other proposals have been put forth to convert unused railway tracks into lush pedestrian walkways as seen from the skyline in New York City.

Traffic is an issue in Miami, so city officials and real estate professionals agree that some major additions need to take place in the transportation sector if Miami wants to compete on an international level. To read more about the foreign interest in the real estate market in Miami, please refer to this  blogpost from Raanan Katz.

 

Foreign Interest in Miami Real Estate

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Raanan Katz Real Estate Miami, FloridaNovember 3 marked the 20th anniversary for the Miami International Real Estate Congress, which drew over three hundred real estate agents and foreign professionals who focus on foreign markets, including 70 delegates from foreign countries.

The conference was a big success: speakers addressed hot-topic issues, industry experts shed light on current trends, and all attendees enjoyed a number of marketing sessions and gala receptions. But if there is one conclusion to draw from the event, it’s that the Miami-Dade and Broward real estate market is once again being heavily influenced by international real estate transactions.

These international deals actually comprise just under a third of all real estate transactions in the area. And that astounding number doesn’t even meet last year’s high of 35%. The foreign demand for Miami real estate is one of the most vibrant pieces of that market that has put Miami-Dade on track to break another record for residential sales this year.

Difficult economic conditions abroad have not stopped foreign buyers from spending big bucks in southern Florida. Florida home sales average $245,000 but international buyers spent an average of $444,052 on their Miami homes. Brazilians topped that international list with a mean payment of almost $500,000 per property, about two times the state’s average.

The tendency for foreigners to lean towards an upscale Miami market has made them an attractive target for realtors looking to cash in on a profitable trend. Alicia Cervera La Madrid, the managing partner of Miami’s Cervera Real Estate, explained, “We’re probably paying some of the highest commissions in the world — between 5 percent and 7 percent.”

Most of the real estate agents in the South Florida area either hail from a foreign country themselves or are at least multilingual and have a deep understanding of the language and culture of their clients. One of those cultural habits is the propensity toward cash purchases — a full 81% of foreign buyers in the area paid in cash, according to a recent NAR study.

Raanan Katz on Miami after the crash:

After the 2008 market crash, internationally-focused agents are palpably excited by this recent foreign interest in Miami soil. The assumption is that Miami is a great place for foreigners to invest their money, but only time will tell whether that trend will hold up in the coming years.