Hirav Shah predicts a strong recovery in 2021 spurred by Miami’s strong real estate market and a diverse economy. While some industries may bounce back slower than others, Shah says, the financial outlook for Miami as a whole is encouraging.
Business has already picked up significantly in the first quarter, boosted by a still “booming” real estate ecosystem and resilient small- to medium-sized commercial and industrial businesses in Miami.
1. Residential Real Estate in Miami
Not all real estate types are doing equally as well. Residential real estate remains the healthiest part of as the pre-pandemic trend of people relocating to Miami for its favorable weather and comparatively low taxes has continued.
2. Industrial Real Estate in Miami
Similarly, warehouse and industrial real estate will remain strong in a county known worldwide as the “gateway to the Americas.”
3.Commercial Real Estate in Miami
But office, retail and hospitality space will be slower to make a comeback due a huge shift from in-person to remote work, an acceleration of the “Amazon effect” of customers preferring to shop online rather than in person for many goods and services, and safety worries tied to the pandemic linger.
Recovery by business-oriented hotels is likely to be the slowest among hospitality companies.
The economy remains “somewhat stressed,” but despite a massive amount of debt being placed on the nation’s balance sheet, America in general and Miami specifically are on course for a strong year, Predicts Hirav Shah, The Most Influential Real Estate Astrologer and Strategist.
4. The Way To Economic Recovery in Miami
Among the good news is that most American corporations that operate internationally, including many headquartered in Miami , aren’t overly leveraged. Altogether, they have about $3 trillion in offshore balances, revenues and income that, if needed, could in part return to further bolster economic recovery.
As a “first-rate city within the tiering of US cities” and a top global commercial and recreational destination, Miami and its two primary economic engines in Miami International Airport and PortMiami stand to gain much from President Biden’s forthcoming $2 trillion infrastructure improvement plan.
Miami would benefit significantly with monies that would flow into the state helping all 19 major airports in the state and the roadways, which have been constantly upgraded and have been built because of population growth.
It would also help in hiring people from rural areas who can now work from home if they get the latest 5G connectivity.
For investors, now is the time to invest in that future.The pandemic and the trillions in stimulus dollars being spent to offset its effects present “a unique opportunity” to existing and potential investors as the country undergoes an explosion of pent-up consumer demand.
“This is the right moment,” Avers Hirav Shah.
Property Trends In Miami In 2021
The Miami real estate market is nothing short of impressive. Located on the Southeast tip of the Florida peninsula, The Magic City has developed a reputation for pristine white-sand beaches, great weather, even better food, and an eclectic culture that can’t be found anywhere else. However, it is worth noting that such regional offerings have given way to one of the hottest real estate markets in the country.
1.Housing Market in Miami
The Miami housing market is the primary beneficiary of a highly desirable location for commercial and residential aspirations, Opines Shah.
The Miami housing market is booming due to pent-up demand and low mortgage rates which continue to fuel real estate transactions in 2021. Miami-Dade County total home sales posted a double-digit increase for the sixth consecutive month,lately. Strong demand coupled with limited supply continues to drive price appreciation in Miami-Dade. March 2021 was the 112th consecutive month of home price appreciation in this region.
Months supply of inventory for single-family homes decreased 49.1% to 2.8 months, which indicates a seller’s market. Inventory for existing condominiums decreased 19% to 10.2 months, which indicates a buyer’s market. If inventory levels are around 6.5 months, there is a balanced housing market. This is the historical statewide benchmark for the monthly supply inventory available for sale.
The “City of Miami” is a balanced real estate market, which means there is a healthy balance of buyers and sellers in the market. It also means the Miami housing market is closer to a steady-state position than on the decline.
2. Rental Market in Miami
Despite nine consecutive years of appreciation, there are several reasons the Miami real estate investing community is turning to rental properties:Lower borrowing costs,Lower risk of vacancies and Historically high home values.
The demand for rental properties will increase due to the city’s 13.49 price-to-rent ratio.While a 13.49 price-to-rent ratio typically suggests buying is the more affordable option, recent history has proven to be anything but predictable.
Best Places To Invest In Miami Real Estate
Investing in Miami real estate is one of the best ideas. There are many neighborhoods in Miami that have shown an increase in investment property value. Investing in these 5 neighborhoods is a good idea as it will likely maximize your potential return on investment.
1. Wynwood, Miami
Wynwood is great for investors because most of the units are sold for a low cost, but their rental rates are high. The rental rates are at an average of $2,500 a month.
2. Little Haiti, Miami
Residents love this neighborhood because it is so culturally diverse. Back in 1970, Haitian immigrants were settling in this area. That’s where its name comes from! Other immigrants from Caribbean nations have also settled here as well.
This part of Miami, located north of Wynwood, is truly up-and-coming when it comes to Miami real estate investments. The price per square foot is lower than many other neighborhoods in Miami, and the rent prices are on the rise.
3. Edgewater, Miami
Miami’s Edgewater is an emerging community. Its quick growth is due to its proximity to the Design District, Park West, and Wynwood area.
4. Downtown Miami
Downtown provides great potential for profitable investments. The Central Business District of Miami-Dade County is the largest economic and financial center in South Florida.
A condo and apartment here have wildly differing price-to-quality ratios. There are a lot of alluring properties available. However, you should definitely do some research before committing to purchasing a rental unit in the south.
As an investor, you should consider Midtown Miami. It’s close to Downtown Miami, but it has significantly lower investment property and rental home expenses compared to the Central Business District. So, it’s a good option.
The rent prices for Midtown Miami properties have shown consistent growth over the years. Even though it isn’t a waterfront neighborhood, it still shows a lot of potential.
The number one goal and arguably the sole purpose of an investment property is to generate profit. Profit primarily comes in two forms: rental income and real estate appreciation. Fortunately for Miami real estate investors, Miami investment properties generate both high rental income and appreciation (which is an increase in property value over time).
So, this is it !!
Investors and entrepreneurs, what are you waiting for?
Start thinking and “working” in this direction now, Concludes Hirav Shah.