Super-rich flock to Miami, will keep coming back
Miami has become a hot spot for the wealthy, and will remain among the world’s top 10 cities for the super rich through at least 2025, according to Knight Frank’s Wealth Report 2015.
Miami came in sixth — following London, New York, Hong Kong, Singapore and Shanghai — in Knight Frank’s ninth edition of its report.
“Underlying this is real demand for luxury properties,” said Liam Bailey, global head of research for Knight Frank. “Where do people want to buy? They want to be in London, they want to be in New York, they want to be in Miami. These are the markets they are concentrating on over time.”
Knight Frank and partner Douglas Elliman launched the report, with a Miami focus, Friday at a breakfast presentation and panel discussion at the Moore Building in Miami’s Design District. Miami is one of 28 global investment hubs where launch events are being held.
On Tuesday, Knight Frank and Douglas Elliman held an event in New York, which will be home to the world’s largest number of super rich by 2025, surpassing London.
“New York remains at the center of global wealth investment,” Paddy Dring, partner at Knight Frank and head of international residential, told Miami attendees.
Miami has become an investment hub for the super rich, including those in China. “Cities like Miami are already firmly on the radar of the wealthy Chinese investors, as the prices of apartments there are up to 25 percent lower than in Shanghai,” the report said. “A key trend remains the cultural diversity of the city and of growing importance is the quality of life offered.
During a panel discussion, Dacra CEO and President Craig Robins noted the evolution of Miami as a global city, referring to the emergence of South Beach and Art Basel Miami Beach as turning points. “Miami defines itself as a place incredibly fun but also a serious place with global, cultural sustenance,” he said.
Panelist Howard Lorber, chairman of Douglas Elliman, said Miami has all the important cultural amenities, including football, basketball, opera and ballet. “It has everything you want. It’s an alive city. It’s a vibrant city.”
Lorber, who is based in New York and has a home on Fisher Island, understands Miami’s allure among the wealthy worldwide. “Where do you want to put your money? To me it’s New York or it’s Miami.”
According to the Wealth Report’s forecast, Miami will rank No. 7 in 2025. Only Beijing will outplace it.
“As a global city,” Lorber said, “Miami is here to stay.”