Miami Luxury Condo Report - Q1 – 2024
The first quarter of 2024 has kicked off with remarkable activity in Miami's luxury real estate market, specifically in properties valued above $2.5 million. Despite challenging high interest rates, inflation, increase in homeowner’s insurances policies, uncertainties about future price trends, and increase in condo monthly fees or special assessments for some condominium, the luxury segment has shown a robust 35% increase in sales compared to Q1 2023, with approximately 390 properties entering contracts and 308 closing.
Market Overview
A total of 128 luxury condominiums were sold in this quarter. The market is dominated by sales in Sunny Isles, which alone accounted for 44% of transactions. Properties in this neighborhood include Aquilina Estates, The Ritz Residences, and Armani Casa. Following Sunny Isles, the most active areas were Bal Harbour, Surfside, South Beach, Mid Miami Beach, Coconut Grove, Brickell, Downtown, Edgewater, and Key Biscayne, listed in order of sales activity. Luxury condominium buyers typically seek one of two experiences: a beachfront lifestyle, spanning South Beach to Sunny Isles, or vibrant live-work-play environments found in Brickell, Edgewater, Downtown, and Coconut Grove. Noteworthy is the record-setting sale at Four Seasons Surf Club in Surfside, which fetched $48 million at an unprecedented $6,587 per square foot. https://portal.onehome.com/en-US/share/1618676s01741
Market Dynamics
This year, an increase in monthly fees influenced by Florida’s new mandatory reserve requirement for 2025 and an increase in insurance has impacted many condominiums. Despite this, the market remains active. The pivotal question for many is how these changes will shape the market through the rest of 2024. We anticipate that the market will continue to be segmented, with newer, financially robust condominiums in highly desirable neighborhoods likely to maintain strong sales. Conversely, older buildings, potentially facing special assessments, might experience slower turnover and stronger price reductions.
Outlook
Looking ahead, we foresee a market that continues to differentiate itself based on property age and financial health. The premium segment will likely remain vibrant, particularly in sought-after areas, as individuals continue valuing luxury and location in their real estate investments. Also, another important factor that will determine if the condo luxury market continues strong is the ability for condominiums to keep their monthly fees at an average level, and no special assessments.