Miami Beach Real Estate: What Makes it Click?

The City of Miami has always been revered for its glitz and glamour, in part or full created by Hollywood and the movies or shows it shot on location in this sunny and scenic vacation spot. Miami Beach’s dazzling history as an entertainment and cultural Mecca, from world-famous Art Deco architecture to renowned nightclubs to designer fashions on Collins Avenue and Lincoln Road, is famously depicted in both TV and movies, from Miami Vice to MTV Spring Break.

The city’s year round tropical climate, terrific beaches, lively entertainment, extensive boating and outdoor activities as well as a wide array of multi-cultural events and traditions make Miami Beach one of the kind. The city owes its vibrancy to the strategic location it has, making it a gateway to the Caribbean, Central and South America. The city also is near superior seaport and airport capabilities. The Miami-Dade area is also known as the major international trading hub of the Americas.

From as way back as the 70’s and 80’s, South Beach, one of its most famous districts, has become one of the hottest destinations. The areas’ unemployment rate is below the national average. One of the reasons why this destination is unique is the diversity of the city’s residents, which make Miami a truly international City. A lot of foreign buyers and relocating executives have been buying prime pieces of real estate, making this region one of the best performing real estate markets in the nation.

From 2002-2006, Miami Beach has seen property values increase in the residential market, usually between 30-50% , causing a huge appreciation in such a short period. The surge in the areas’ real estate taxes, coupled with high insurance premiums has caused some misgivings in owning a property.

The city’s typical property value appreciation rates run from 3-5% annually depending on the property location. The metropolitan Miami area offers a diverse inventory of homes. A typical single-family home can start between $150,000 and $190,000, and depending on the area, townhouses and condos usually start in the low $100,000 range. Around 96% of Miami’s economic growth is in housing, and in the current Miami real estate market, it is not unusual for sellers to receive offers days after the property goes on the market.

One of Miami Beaches’ most famous residential developments is one named after the captivating Italian City on the bay, Capri South Beach. Capri South Beach offers buyers the opportunity to reside in South Beach’s most exclusive, new residential developments on the water, in a sheltered, oasis-like setting, and this is all within walking distance to Miami Beach’s finest dining, shopping and entertainment.

As the area’s tourism market is continually growing, so would its property markets. The Miami Beach district has been recently dubbed the New Manhattan by the US property media, and the Greater Miami association of Realtors states that the Miami property boom will add more than 100,000 homes to this district. Many of these new and soon-to-be-developed properties are built with having foreign buyers in mind.

Exchange rates are favorable in Europe for example, and with a 28 per cent increase in prime housing prices in annually, analysts would say that now would be the perfect time to buy Miami Beach property. Hence, no matter where you go, there are aplenty of revitalization projects and new construction going up all around the city and in nearby communities.