Miami is the fifth most important real estate market for the world’s wealthiest people, according to Douglas Elliman and Knight Frank’s Wealth Report.
Miami, which has been on and off the annual list for years, ranked fifth behind London, New York, Los Angeles and Hong Kong, based on the number of deals of $10 million or more in 2022.
The Magic City saw 146 sales of $10 million-plus homes, and 23 deals of $25 million or more, last year. They included billionaire hedge fund manager Ken Griffin’s $106.9 million purchase of Adrienne Arsht’s former bayfront, as well as Griffin’s $45 million purchase of a Coral Gables mansion.
Miami wasn’t the only city in South Florida to make the cut. Broward County and Palm Beach County, combined, ranked seventh with 117 deals of $10 million or more, and 18 of $25 million or more in 2022. The majority of the top 10 residential sales last year were in Palm Beach County, according to The Real Deal’s ranking.
Miami also ranked fifth in terms of price growth, up 22 percent, year-over-year. Of the 100 markets that Knight Frank tracked, 85 saw no growth or some growth in pricing last year. Dubai experienced the largest gains in pricing for the second year in a row, up 44 percent, followed by Aspen, Riyadh and Tokyo.
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Last year, the top 10 global markets notched about 1,400 sales of $10 million or more, down 33 percent compared to the previous year, but up 49 percent compared to 2019.
The report noted the slowdown that began in the second half of 2022, largely due to the rise in interest rates, which is expected to continue throughout this year. Still, 44 percent of all deals worldwide that closed last year occurred in the latter half of the year.
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Now, let's delve into the specifics of the article on Miami's standing in the global real estate market. The data presented is sourced from Douglas Elliman and Knight Frank's Wealth Report, two reputable entities in the real estate industry. Miami has consistently been a noteworthy player on the annual list of top real estate markets for the world's wealthiest individuals, and the 2022 rankings reinforce its prominence.
The ranking is based on the volume of real estate deals valued at $10 million or more, a threshold that attracts high-net-worth individuals. Miami secured the fifth spot in this prestigious list, trailing behind global hubs such as London, New York, Los Angeles, and Hong Kong. The Magic City recorded a substantial number of high-value transactions, with 146 sales surpassing the $10 million mark and 23 deals exceeding $25 million in 2022.
Key transactions contributing to Miami's standing include billionaire hedge fund manager Ken Griffin's acquisitions, notably the $106.9 million purchase of Adrienne Arsht's former bayfront property and a $45 million purchase of a Coral Gables mansion.
Furthermore, the article highlights that the influence of South Florida extends beyond Miami. Broward County and Palm Beach County, when combined, secured the seventh position in the global rankings, with 117 deals valued at $10 million or more and 18 deals exceeding $25 million in 2022. Palm Beach County particularly dominated the top 10 residential sales.
Price growth is a crucial metric, and Miami exhibited a notable 22 percent year-over-year increase, securing the fifth position in this category. This growth is remarkable given that, among the 100 markets tracked by Knight Frank, 85 either experienced no growth or limited growth in pricing in the same period.
It's also noteworthy that the global real estate market witnessed a slowdown in the latter half of 2022, primarily attributed to the rise in interest rates. Despite this, the report emphasizes that 44 percent of all worldwide deals that closed in the year occurred during this period.
In the broader context, the top 10 global markets collectively recorded approximately 1,400 sales valued at $10 million or more. While this represents a 33 percent decrease compared to the previous year, it signifies a substantial 49 percent increase compared to 2019, underscoring the resilience and cyclical nature of the luxury real estate market.
In conclusion, Miami's continued prominence in global real estate, coupled with insights into the broader trends affecting luxury property markets, reflects the dynamic and ever-evolving nature of high-value real estate transactions on a global scale.
