Miami Luxury Real Estate Prices On The Rise As Foreign Activity Drives The Real Estate Boom

By Selda Kirkan

Miami luxury real estate prices are now at record-breaking levels. According to real
estate agents within the region, prices are now at a point where there is nowhere else
to go but up.

In 2011, sales on luxury condos have gone up by almost 20 percent compared to
Miami’s peak year of 2006. But people have a number of other reasons to believe that
another boom has taken place once again within the region.

For instance, a luxury penthouse was purchased from the Miami real estate market for
a value of $25 million for a three-story, five-bedroom, 7.5-bath home which features
25-foot high windows which offer captivating views of the ocean as well as the entire
city horizon.

On the other hand, a luxury home situated on a 30,000 square foot beachfront location
has recently been placed under contract for a whopping $52 million. The property is a
ten-bedroom home with 14 bathrooms as well as a variety of luxurious features such
as a chromotherapy spa, a limousine-size garage, a hidden art storage facility, a 100-
foot pool, and its very own panic room.

Also, the Casa Casuarina — a mansion once owned by the famous Versace — has
recently been listed on the property market for a value of $125 million. It has a total
of ten bedrooms, 11 bathrooms, and features an elegant mosaic pool which has 24-
karat gold linings to make it one of the most fabulous luxury homes within the region
today.

It goes without saying that the Miami luxury real estate market is being driven by a
diverse range of wealthy buyers who are looking for the most outstanding options in
the region today.

The vast majority of wealthy buyers come from outside of the United States. Figures
show that they have acquired as much as $66 billion worth of real estate within the
country in 2011 — 33 percent of which involves real estate within the state of Florida.

Real estate experts believe that the foreign activity that the region has been receiving
is driven mostly by the fact that these properties provide people with some of the best
investment opportunity. However, there are also those who are looking to secure their
wealth within the region, especially since it has one of the most stable markets within
the country.

Nevertheless, there are many who simply find the idea of having a home within the
region to be a great symbol of wealth.

According to The Miami Herald, the South Florida region has been quite impressive
over the last decade. In fact, Miami is now the third largest bubble city within the
United States with Las Vegas and Phoenix being in the first and second positions.

While prices are now down by as much as 50 percent from their peak in 2006, today’s

figures are still 11 percent higher than they were in 2002 and remain 40 percent
higher than they were in 2000.

Reports show that Canadians are among the largest foreign buyers within Miami as
they account for 24 percent of foreign real estate activity. Other countries that account
for significant foreign activity includes China with 11 percent; Mexico with 8 percent;
the United Kingdom with 6 percent; India, also with 6 percent; Brazil, Germany, and
France with 3 percent; Russia with 2 percent; and Japan with 1 percent.

Many of these foreign property buyers have mentioned that the price of real estate in
the region proves to be far more affordable than real estate in their own native lands.

Others have also mentioned that buying real estate within the United States has been
one of their top options due to the fact that many consider the opportunities within the
country to be outstanding whether it involves education, job opportunities, and more.

Real estate analysts expect foreign real estate activity to generate about $82.5 billion
in 2012.