The Rising Preference of Wealthy Homebuyers for Miami: A Surge in $10 Million+ Properties

Where would the world’s wealthiest individuals choose to live? Increasingly, their answer is Miami, as demand for homes priced over $10 million continues to rise.

According to the Knight Frank Global Super Prime Intelligence Q2 2024 report, conducted with real estate firm Douglas Elliman, Miami-Dade County recorded 102 residential transactions exceeding $10 million in the first half of 2024, marking a 32% increase from 77 deals during the same period in 2023. The report analyzed all residential closings above this threshold through the Multiple Listing Service (MLS).

At this rate, Miami-Dade could surpass its 2023 record of 124 ultra-luxury sales.

Some of the most significant deals are being made in areas like Pinecrest. For instance, Andre Hakkak, a portfolio manager at White Oak, set a new record in the neighborhood by purchasing a 15,000-square-foot home for $14.3 million. The property includes seven bedrooms and six bathrooms.

Since the pandemic began in 2020, Miami has attracted several high-profile figures and corporations, including Jeff Bezos, Ken Griffin, and Malik Sefrioui, the son of billionaire real estate developer Anas Sefrioui. The influx of wealth into the region has driven up property prices in Coral Gables and Miami Beach.

Liam Bailey, global head of research at Knight Frank, noted that Miami’s reputation as a prime destination for wealthy individuals has significantly expanded.

“Miami has transformed into a key national and international market,” Bailey explained. “Its appeal now spans beyond lifestyle and culture, offering a growing hub for businesses and entrepreneurs, solidifying its position as a wealth center.”

Miami’s Global Standing Among Wealthy Buyers

Miami’s increasing prominence has also elevated its standing globally. As of June, it ranked fourth in the world for high-end residential sales, behind Dubai, New York, and Hong Kong, according to Knight Frank’s report. Cities such as London, Palm Beach, and Paris lagged behind Miami in this category.

Real estate agent Josie Wang, of Brown Harris Stevens, has observed a growing interest in Miami-Dade properties from buyers across the globe, including countries like France, England, India, and Colombia. U.S. residents are also contributing to this demand, with many relocating from states such as California, Illinois, and New York.

“Miami’s name alone draws buyers,” Wang said. “Initially, some people came here during the pandemic intending to rent temporarily, but after experiencing the lifestyle, many decided to stay.”

Wang’s clients typically target neighborhoods such as Coral Gables and Coconut Grove, where $10 million can secure a property around 5,000 square feet in size. However, those seeking waterfront homes should expect to pay upwards of $30 million.

Developers Respond to Rising Demand

With increasing demand, developers like Gaetano Caltagirone are rushing to meet the needs of wealthy buyers. Caltagirone, president of The Calta Group, is currently working on five single-family homes in Coral Gables, Pinecrest, and South Miami, each priced between $11 million and $17 million. One property is expected to be completed later this year, with the others set for completion in 2025.

“We’ve seen remarkable growth in this market segment,” Caltagirone said. “Executives from top hedge funds and major corporations moving to the area are driving demand for these homes.”

Caltagirone anticipates strong demand for high-end properties over the next two to three years as more executives relocate to Miami-Dade, following their colleagues and industry leaders.

The influx of wealthy buyers could bring broader economic benefits to the region, according to Jay Phillip Parker, CEO of Brokerage for Florida and President of Douglas Elliman Development Marketing.

“High-net-worth individuals have a different approach, which could offer substantial opportunities for the local market,” Parker said.

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