Miami Tops the List of Largest Price Increases for Luxury Real Estate in the World

Real estate markets around the world are growing and changing, and this includes luxury markets in every corner of the globe. Every year Knight Frank, a global real estate consulting company, puts together a list showcasing the increase in home values of “prime” properties around the world, called the Prime Global Cities Index. For the purposes of the study, they only include properties that are in the top 5% of real estate in their respective markets, classifying them as luxury properties. Knight Frank looked at data from 46 international cities from the third quarter of 2020 through the third quarter of 2021 to determine where the largest percentage gains took place in 2021.

Analyzing the price increases in these international markets, Knight Frank concluded that the highest percentage of increasing luxury property values was right in our backyard! Miami saw the largest percentage gain of any city in the entire world! The property values in Miami rose by a remarkable 26.4% year over year. The lack of supply within the market, coupled with the massive growth and influx of buyers into Miami from all over the country is what is driving this huge upward trend in luxury housing prices. In fact, it is not just last year that we have been seeing exploding home prices in South Florida. Since 2018, the average cost for a single family home in Miami has doubled! The end of 2021 saw an average home price in Miami of more than $915,000. Industry experts believe that the rising home prices will not slow down in 2022. In fact, they believe that it will also be seen in the Miami condo market, as supply continues to dwindle.

Miami was one of only 3 American cities that made the top ten on the Prime Global Cities Index. The other two American cities listed in the top ten were San Francisco at #6 and Los Angeles at #8. San Francisco saw luxury home value growth of 20.2% while Los Angeles luxury properties rose by 18.2%. All other cities in the top ten were international cities and included Seoul, Shanghai, Moscow and Toronto amongst others.

As listings continue to dwindle and prices continue to rise, 2022 is sure to be a unique year for real estate around the world. Here in our neck of the woods, we are seeing an extension of the Miami market. Florida Keys luxury real estate prices have risen as well, and with such few listings available there is no doubt that this trend will continue throughout 2022.