The Many Benefits of Purchasing Miami Beach Real Estate

by MajesticProperties

Looking for the perfect city for investment property or a second home? Here are the biggest benefits of Miami Beach real estate, such as the higher-than-average appreciation rate.

Miami Beach has always been popular with tourists and investors alike with its tropical climate, exciting nightlife and beautiful beaches. If you're thinking about buying a second home or purchasing investment property, there are many things that make Miami Beach real estate a great choice. Here's a look at the top advantages, including its ideal location and high property appreciation rates.

Image credit: Miamibeachrealestate at Flickr

What Makes Miami Beach Real Estate Unique?

So, what makes the area so popular with foreign investors and people buying vacation homes? Property in the city offers the following unique benefits, which are explained in-depth later.

  • Miami Beach is located strategically, serving as a gateway to the Caribbean and Central America
  • Close proximity to major airports and seaports
  • Largest concentration of international banks in the entire United States
  • Miami Beach real estate tends to appreciate between 3 and 5% annually, although this depends on the exact location and type of property. This is a higher average return than most real estate in the country.
  • Luxury properties in Miami are expected to grow in demand as more international investors and tourists flock to the market.
  • Condos for sale in Miami Beach do very well as rentals and many people buy Miami property just to rent it out for a profit to traveling business professionals and tourists.

Excellent Location

Miami Beach is known for its entertainment venues, dining, world-class shopping and exciting nightlife, along with the warm weather. It's location also offers other benefits, as it's within close proximity to major airports and seaports that serve the entire world. Miami is also the banking center of the United States with the highest concentration of international banks in the country, which makes the city a popular choice for foreign investors and professionals.

Miami Beach Real Estate - Aerial Shot
Miami Beach Real Estate - Aerial Shot

Property Value Appreciation

Miami Beach real estate can truly been seen as a long-term investment, particularly with the price of luxury condominiums and homes in the area still relatively low after the housing collapse. Since 1990, Miami Beach real estate has appreciated an average of 225.25% with an average appreciation rate of 5.85%. This  is much better than average compared to the rest of the state, as well as the rest of the country. In the city, the neighborhoods with the highest appreciation over the past 22 years include:

  • Bay Harbor Islands / Surfside
  • Alton Road /Bay Road
  • City Center
  • Macarthur Causeway
  • 5th Street / Collins Avenue

Demand Expected to Grow

Miami is one of the top 5 most popular tourist destinations in the US and has become a haven for professionals around the world. There are many signs this year showing that demand is expected to rise again, as the supply of luxury condominiums and foreclosures is drying up much faster than expected after the housing market collapsed. The area is also seeing the rise of many new luxury hotels, such as the $85 million SLS South Beach Hotel located on Collins Avenue. Many hotels are also being renovated and transformed into condominiums, such as Canyon Ranch, which sits on the previous site of the Carillon Hotel. Pending home sales in the city are also 15% higher than last year and foreign investors seem to be the biggest factor strengthening the Miami real estate market. Because Miami is truly a global city, demand from investors and buyers around the world will continue into the future.

Miami Beach Luxury Rentals

As one of the top tourist destinations in the world and one of the largest international business centers in the country, Miami has always been a popular location for rental properties. Waterfront condominiums do especially well when they're purchased as investment properties for renting as they can be rented to traveling professionals as well as domestic and international visitors who want to experience waterfront luxury. If you plan to buy Miami Beach luxury condos to rent out, have a real estate organization like Majestic Properties help you look for high-quality facilities like oceanfront pools and fitness centers, spacious floor plans, stunning views and white-glove services available to residents.

Updated: 10/22/2012, MajesticProperties
 
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Rose on 01/08/2014

It's in hurricane territory isn't it? Is there special insurance you can get, how much does it cost and will the state help you?

cmoneyspinner on 10/03/2013

I can think of two good reasons for buying real estate in Miami Beach.
(1) Gloria Estefan might be my neighbor; and
(2) Al Capone no longer lives there! :)

jillian22 on 12/12/2012

Thank you so much for the information - I like Florida!

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