2018 WORLDWIDE RESIDENTIAL REAL ESTATE MARKET REPORT
Let's start this newsletter with a worldwide residential market update.
The index rate for the average global performance in the luxury market reached it's the lowest level last year. In 2017, there was a 2.1% growth, which dropped down to 1.3% last year. This is the first time since 2012 that this industry showed a slowdown. There are clearly some exceptions. For instance, cities like Singapore. Singapore is ranked 7th and has shown the biggest luxury price growth in its history.
In 2017 there only eleven cities which showed double-digit growth, but in 2018 there were only 5 cities with this growth. Miami is on the TOP-30 worldwide with an annual growth of 3.3%. It is expected to increase to 5.5% at the end of 2019, which will rank the city above a large list of key cities in the US. This growth is due to fair residential prices, and an appealing lifestyle.
On the other hand, some politically unstable countries of Latin American are now seeing buyers moving to Spain looking for more stability. The same happens with Turkish citizens that are now moving in Germany. This has brought wealth into these European countries but has caused a slowdown on the prime local prices of the Latin American/Turkish market. Conversely, European cities have a generally good performance. Edinburgh, Berlin, and Munich are on the TOP 10 with around 10% growth. Cities like Lisbon or Algarve have a positive increase compared to 2017. France had an overall positive performance, excluding St Tropez which had a decrease of -1.5%.
All these analyses depend clearly on the macro and micro context of each city. For instance, the Brexit caused a drop of xx positions for London from 2017-2018. England's capital is now ranked 91st. same happened with New York and its State and Local Tax law (SALT), making this city drop to an 82nd position.
Finally, let's see what the projections for 2019 are. The World economic market will drastically change. People will answer to larger uncertainty and this will be reflected in lower price growth in worldwide residential markets. Residential prices will decrease for cities such as Buenos Aires, Dubai, and Mumbai. They will remain static for cities such as New York and Singapore (which shows that local tax and law regulations will keep moving the market performance). There are also cities like Madrid, Miami, Paris, and Berlin which are expected to continue their growth.
10-MILE LINEAR PARK PROJECT IN MIAMI
Miami welcomes the new park project that will take place below the Metrorail line in Downtown/Coconut Grove and Coral Gables.
This linear-park development started in November of last year and is projected to take 10-mile linear space with a budget of $120 million. It will go from the north of the Miami River, down to Dadeland South.
The main goal of this project is to fight against crime, knowing that Miami is ranked 4th of the most dangerous cities to walk in the US and is the most hazardous place to bike in Florida. The Underline park will give a safer way to get where you want to go, leaving your car behind. I have to admit that I use my car to go everywhere, and this is an extra option that the city is giving us to move and relieve traffic congestion.
The path will be full of vegetation. Flowers, trees, butterfly gardens, waterfalls and there is even a project of spreading orchids all across over the 120 acres of open space. There will be a dog park, an outdoor gym, a basketball court, a large communal table, and more! You just have to look at the renderings of this project to understand how this park will transform Miami. I'm really excited to see the results of this needed solution!
IS OWNING CHEAPER THAN RENTING?
It is a hard question I have to say. There is only one answer to this question and it is... it depends. It depends on a lot of different factors, but the most important is the Location.
It is important to note that on average an American citizen will need six and a half years to save the money to pay the 20% down payment.
Here are the Top-5 cities where mortgage payments are lower than rentals which means you should buy in Miami instead of renting!
1. Miami: That's right! In our beautiful Miami, the average rent is higher than the mortgage by $262. This means that you will pay that monthly extra amount when renting, compared to buying.
Average rent: $1,477
Average mortgage: $1,215
2. Orlando: There seems to be a tendency in Florida for lower monthly mortgage vs. rent payments. In this touristic city, there is a difference of $227.
Average rent: $1,263
Average mortgage: $1,036
3. Virginia Beach: The rent to mortgage difference has a big jump from the last city to Virginia, as there is an average variation of $155.
Average rent: $1,318
Average mortgage: $1,163
4. Tampa: Another Floridian city on the list! With a difference of $120, in Tampa is better to buy a house and pay a mortgage, than renting a place!
Average rent: $1,192
Average mortgage: $1,072
5. Denver: The populous Denver is our last city on the Top-5 with a discrepancy of $110 between rent and mortgage payments.
Average rent: $1,362
Average mortgage: $1,252
So if you are in one of these cities or you are planning to move, the recommendation for you is to start creating wealth buying a home and not just renting it!
APRIL'S EVENT SUGGESTIONS
And all of a sudden, April is here and it comes with incredible activities in the city of Miami! Spring brings even sunnier and longer days, where the only thing you shouldn't be doing is staying home! April is brimming with several events, so if you are feeling indecisive, here are some suggestions for you...
April 1st - 7th: With a projected 80 thousand public, the Miami Beach pride has the first week of the month reserved for a list of events that include a VIP gala, dance festivals, social mixers shows and more! The main goal of this event is to encourage tolerance between all genders and sexual preferences, bringing everyone together in the same community!
April 3rd - 7th: These are the 4 last days to be part of the Miami county fair & Expo! Enjoy a large list of in and outdoor activities for all ages. From live concerts and agricultural exhibitions, up to the renowned Youth Fair. This is the largest ranked fair in the entire state!
April 6th: Join me at the one-and-only Miami Riverday festival! This event featuring free cruise rides down the Miami River. Let's have a day full of out-door live activities that include music performances, environmental and historical education, and more!
April 25th 28th: Be part of the Beach Polo World Cup and enjoy an incredible weekend that features professionals and amateurs polo players battling each other in the sands of South Beach. Watch these six-international teams compete for the desired trophy!
AMARE RISTORANTE IN SOUTH POINTE
Yet again another new treat for the neighborhood! This quality-seeking restaurant fully focuses on spoiling its customers with the best products, service, and ambiance. The Michelin-awarded chef and partner, Cosimo Cassano, is decided now to show us a real Italian eatery.
Located on Collins and 1st street, Amare restaurant offers the most authentic Italian cuisine in Miami Beach. It owes its name to the translation of "Love" in Italian.
With a bright and energetic ambiance, this restaurant has also an Italian classic style, with the hand-painted tiles and classical blue, white and coral shades. There is also a bar located almost at the entrance followed by a terrace with lemon trees and plenty of space. My personal recommended dishes for Amare Ristorante are the exceptional tuna Carpaccio, the raw fish with shrimp salad and the crispy octopus. It was absolutely delicious! I will be going back soon!
DEAL OF THE MONTH: YACHT CLUB #2010
- Listed at $1,075,000
- Fully remodeled
- 1,090 sqft
- 2 beds / 2 baths
- High floor