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In the Know: South Florida’s Real Estate Market is Making Headlines

by | Feb 7, 2024

The South Florida real estate market has been making headlines recently, with articles detailing Miami’s rollercoaster rental market, the rise in new listings in Florida despite high interest rates, branded residences, and more. We spoke to The Agency’s Brian Fairweather, Daniel Tzinker and Howard Elfman to get their takes on the region’s recent headlines and the future outlook of the South Florida real estate market.

 

Who is buying property in the South Florida market right now? 

Daniel: Historically, Miami has been known for its international buyers. However, with the onset of the COVID-19 pandemic, there was a surprising shift toward local migration from states such as California and New York. Over the past year, there has been a notable resurgence in international buyers, resulting in a balanced distribution of 50% between international and local buyers.

 

What is attracting them to the area? 

Howard: The allure of South Florida extends beyond favorable tax conditions and a desirable lifestyle. The presence of renowned luxury brands in culinary, fashion, and residential sectors, including establishments like Waldorf Astoria, Ritz-Carlton, Baccarat, Rosewood, Aman, etc., relocating to South Florida, has further elevated its status as a prime destination.

 

Brian: The reasons are many! Some that I hear often are the lifestyle, the schools, office relocation and a warmer place to retire. 

 

Daniel: Every buyer has a unique story, but a prevalent sentiment is the perception of safety in Florida. Individuals from New York may highlight the appeal of the weather, while international buyers find Florida conducive to meeting their children halfway, especially when it comes to school commitments. The array of responses continues to be diverse and multifaceted.

 

Is there anything noteworthy about the market right now? Any increase in buyers or renters from a certain region? 

Howard: There is a noticeable interest from both domestic and Latin American individuals in the South Florida market. This trend indicates an increased attraction to the region among buyers and renters from these particular demographics.

 

Daniel: Unlike the last few years during Covid, where we only saw migration from the Northeast and West Coast (specifically California, New York, Chicago, etc), we are now shifting to more normalcy seeing buyers from Canada, Europe and Latin America (primarily Brazil). 

 

Are there any new developments emerging in the South Florida region?

Brian: West Palm Beach has a bounty of new development projects—both commercial and residential. We’re seeing development sites that are catering to the more affordable home buyer to a tower on Flager that will have a penthouse valued over $75M. 

 

Daniel: Another example is the St. Regis Sunny Isles, situated parallel to Bentley. In the vicinity of our office in Bal Harbour, there’s Rivage. Heading 20 blocks further south, you’ll encounter Perigon. Even lesser-known areas like Pompano are witnessing significant development, with prominent names such as Rosewood and Ritz-Carlton making their mark.

 

How do you anticipate the real estate market to evolve over the next year? 

Brian: With all the new projects coming to West Palm and the surrounding areas and with interest rates falling, 2024 will be a great year for real estate in Palm Beach County. We also have a ton of golf courses being developed and opened by world-renowned architects which will continue to drive golfers to this area. 

 

Daniel: It promises to be an exciting period, especially with the current trend of decreasing interest rates, and further reductions anticipated. Government easing on monetary policy tends to encourage buyers, prompting increased activity in the market. I expect a surge in both the number of buyers and transaction volumes. However, predicting price movements is challenging. Despite a 50% reduction in transactions last year, prices did not follow the same downward trajectory. They remained stable, making it uncertain where prices will head in the coming year.

 

Do you have any stats or data about the market over the past year that are notable? 

Howard: Notably, rents in South Florida have seen an uptick, attributed to the construction of new buildings with exceptional amenities across the entire South Florida market, contributing to the overall increase in rental prices.

 

Daniel: Certainly, there are notable statistics and data from the market over the past year. One standout is my record-breaking deal in Fendi Chateau in Bal Harbour, where I  sold a unit for over $10 million. This transaction is particularly significant for the area, given that the price per square foot exceeds $3,000. Additionally, there was another noteworthy sale in Armani that I closed for $2,000 per square foot.

 

Any design or architecture trends you’ve seen in the last year? 

Howard: A prominent trend involves integrating the luxury and sophistication associated with renowned brands into residential spaces. Modern design elements are still prevalent, but there’s a growing inclination towards incorporating warm undertones for a more inviting atmosphere. A significant departure from stark white buildings has been observed, signaling a diminishing trend. Homebuyers and residents are expressing a preference for a cozier feel, steering away from the clinical aesthetic of stark white structures.

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