4 Reasons to Invest in Miami Pre-Construction

residential buildings in front of body of water during daytime
Featured Post

As an investor, there are thousands of markets to choose from, and deciding between so many excellent options can become overwhelming.

Hallmark markets like California and New York are considered oversaturated, which is why many are turning their sights down south to Florida, especially Southwest Florida.

Sun, sand, and fun: Miami truly has it all. However, the Magic City is not just about sunshine, but also about shining investment options that will help build your portfolio and ensure steady cash flow.

Invest in Miami Pre-Construction

Today, we’ll explore four of the most compelling reasons to invest in Miami pre-constructions, then investigate several of the best options for those wanting to enjoy buy-and-hold real estate in this exciting market.

Miami Has Enjoyed Rapid Population Growth

assorted color wall paint house photo
Photo by Jessica Bryant

Miami residential real estate is typically separated into two distinct products: long-term and short-term rentals. Population growth and average property values are key indicators of whether a market will satisfy the needs of investors seeking to purchase units for longer leases. Thankfully, Miami delivers on both fronts.

In terms of population growth, Miami has enjoyed a huge influx of potential renters in recent years. The city has grown by 3.03% from 2020 to 2024, fueled by a few different forces.

Firstly, Florida overall is well known as a retiree-friendly locale because of its low taxes; as the Baby Boomer generation ages, they are moving house to live their golden years in the sunshine. On the other end of the generation span are well-educated remote workers whose flexible lifestyles have allowed them to seek a warmer, friendlier climate.

Like other major cities, it is cheaper to rent than buy in Miami. The Mortgage Research Center notes that it costs about $1,500 less per month to rent, which is music to the ears of long-term rental investors.

High Tourism Ensures High Profits

white boat on sea near city buildings
Photo by Irasema McAllister on Pexels.com

Those who want faster turnover may turn to short-term rentals, which are also very lucrative in Miami. The city welcomed over 26 million visitors last year, including 8.3 million international visitors.

The Miami International Airport provides over 1,000 flights daily to 183 domestic and international destinations, further enhancing the ease of access to this beautiful city. Most importantly for investors, the majority of visitors stay at least one night.

Part of Miami’s appeal is its dense urban environment and breezy public transit system, which make any investment near transportation a good idea. Another essential element of Miami’s draw is the famous Miami Beach area, renowned for hosting amazing Spring Break vacations.

A long day at the beach necessitates a quiet night in, and the smart investor will select a property that will appeal to both the young and old.

The City Is Investor-Friendly

white concrete building near green tree
Photo by On Shot on Pexels.com

Real estate moguls agree: Miami is one of the best places in the United States for real estate investment.

In Knight Frank’s 2022 Wealth Report, Miami was ranked in the top three worldwide for promising real estate investments, which is due in no small part to its excellent investor-friendly policies.

Firstly, Florida is one of only seven states that does not have a state income tax, which allows investors to save more of their funds; this is also part of the reason that many retirees find themselves here.

Another reason is that Florida prohibits rent control and allows landlords to set their own rental policies, including abbreviated eviction policies.

While this may seem like it matters only for long-term investment policies, it also protects short-term or mid-term rental investors who find themselves with a troublesome tenant.

Property Values Are Rising Fast

house with gray roof
Photo by Curtis Adams on Pexels.com

These factors set the stage for why Miami is an excellent place to invest in real estate, but now it’s time to consider why pre-construction may be your ticket to success. The reason is simple: property values are rising fast, and your purchase today will protect you from market shocks.

Redfin reports that property values are currently up 7% year-over-year, and the housing stock has shrunk considerably during this time.

Real estate requires a long-term view: what you purchase now will be worth even more by the time the property is ready to rent out. You will be perfectly poised to benefit from the high population growth and unabated tourism surge.

Key Pre-Construction Options

man in yellow safety vest climbing on ladder
Photo by Pixabay on Pexels.com

Thankfully, there are numerous pre-construction options available throughout Miami. Some of the most highly anticipated constructions include the Cipriani Residences, which will include 405 residences across 80 stories.

Guests and renters will enjoy 24/7 dining services, a gym, and two pools spread out across sumptuous gardens. The glass building will also allow residents beautiful views of the Biscayne Bay and Atlantic Ocean.

Another excellent option is Viceroy Brickell, a 45-story, 498-residence property situated right in the heart of Miami’s beloved Brickell neighborhood.

The building will feature an outdoor spa, exclusive clubroom, golf simulator, and complimentary membership to the Grand Bay Club at Key Biscayne, one of Miami’s favorite relaxation spots.

It’s clear that Miami is a promising market that deserves attention, with particularly good prospects in pre-construction. Investors eager to jump into this hot Sun Belt commodity have many gorgeous high-rises coming soon that will generate amazing cash flow in Florida’s southern belle.

Disclosure: Some of the links above are affiliate links, meaning that at no additional cost to you, I will receive a very small commission if you click through and make a purchase. These links help to pay the editorial costs of writing a blog. For more information, please read my full affiliate disclosure here.

I also use Artificial Intelligence Image generators to create some of my images. These are to show you examples of my ideas and inspiration when I cannot produce the real images myself.

4 Reasons to Invest in Miami Pre-Construction pinterest pin

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *