As every year, BARNES 'goal is to anticipate the market to help its clients seize the best opportunities. So today we offer you our 10 predictions for 2018 regarding the real estate market in Miami.
1 & #8211; Buyers from the Northeast of the United States will dominate the market
In the Miami real estate market, foreign investors are becoming increasingly rare. But this is offset by a new influx of buyers from the North East of the United States. Indeed, we receive many requests from New Yorkers looking for a second home under the sun of Miami, or even people seeking to relocate.
2 & #8211; The return of the Europeans
With a record value of the euro reaching $ 1.20 for the first time since 2014, Europeans are acquiring a very strong purchasing power in the United States. And the best way to secure a dollar investment is real estate!
3 & #8211; Bitcoin transactions
While the Bitcoin craze is still on its way, investors who have successfully bet on cryptocurrency are looking for ways to diversify their portfolios. Foreign investors sitting on mountains of volatile capital that they would like to "solidify in stone" could well turn the Miami real estate market into a paradise for their crypto-currencies. Indeed, the first real estate transaction in Bitcoin has been carried out in Miami and opportunities to buy Bitcoin are increasing.
4 & #8211; The housing market will remain stable, while the high-end will slow down
The Miami home market works in a totally different way than condos. In recent years, we have seen a steady rise in transactions in the home market. However, the market for high-end homes is declining as supply increases. This implies that buyers are no longer paying a high price for properties that are not perfect and that do not justify such a high square feet price. L & #8217; location and size no longer does it all!
5 & #8211; Neighborhoods continue to see their attractiveness grow
Neighborhoods such as Edgewater, North Beach or Downtown will continue to grow in value thanks to major commercial projects and new infrastructure that continues to grow.
6 & #8211; New neighborhoods to watch
Buyers will turn to new geographic areas that are still affordable and therefore offer attractive real estate opportunities. We think in particular of South Miami, the Roads or some areas of the Upper East Side.
7 & #8211; The Tax Reform will increase the number of transactions
After the Tax Reform reducing the income tax from 35% to 21%, many individuals will have new funds to invest. And many of them will choose real estate!
8 & #8211; Commercial real estate will peak
Commercial real estate and the so-called "Triple Net" or "NNN" opportunities will see their demand increase, while their interest rates stagnate. There are now many investment opportunities with leases ranging from 10 to 25 years whose net profitability (ranging from 5 to 10%) are guaranteed by the tenant's parent company.
9 & #8211; The boutique buildings continue their seduction business
Real estate developers will focus on buildings of smaller sizes than before. No more 60-storey buildings and 300 apartments, instead of more private and exclusive residences, often thought by the best architects in the world. These buildings are called "Boutique Buildings" with a small number of apartments.
10 & #8211; The big internet companies will bet on real estate
Ebay, Google or Facebook will all bet on the real estate market, through acquisitions and investments. The real estate market offers opportunities that are not denied.
BONUS: The economy and the real estate market will work well
The creation of employment peaks, the unemployment rate is at its lowest for 17 years, wages take off and companies invest at full speed, while corporate taxes fall dramatically. The political uncertainty will not slow down the global economy, which is starting again at full speed, leading to the real estate market.
Fasten your belts, 2018 promises to be a prosperous year!
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