Miami predicted to be world’s second-best luxury market in ’23

Don’t expect a deal on a Miami luxury home any time soon. In fact, the high-end housing market is expected to see 5 percent price growth next year, according to a new report.

A global ranking of the top 25 luxury real estate markets by Knight Frank found that Miami will rank second overall in the new year, CNBC reported. The report anticipated a cooling luxury market overall, with average price growth of just 2 percent, down from the 2.7 percent previously predicted by the real estate consultancy.

Miami’s luxury market has been booming for more than two years, ever since the pandemic triggered a deluge of high net worth migration and corporate relocations to the Sunshine State. The effect has been unprecedented price growth across the South Florida market. The impact was even greater on luxury home prices.

Waterfront and non-waterfront properties alike set records, and despite a cooling market, pricing has remained steady.

After a year of mortgage rate hikes and the threat of a recession looming, even the traditionally stalwart luxury market appears to be feeling some of that pressure as well.

But if 5 percent seems high, potential Miami buyers should be grateful it’s nowhere near the No. 1 spot. Dubai sits well atop the list. Knight Frank predicted the city will see a 13.5 percent price growth in its luxury market next year. Still, that’s a significant slowdown from the 50 percent spike it experienced this year.

A couple of other major U.S. cities made the list, too, and are expected to see notable price increases. Los Angeles is expected to see a 4 percent uptick, while New York is forecasted at 2 percent.

— Kate Hinsche