Moves Up Ranking Of Most Important Cities For Ultra-Wealthy
It only takes a short walk around Miami to see that just how much this magical city attracts wealthy residents and investors from all over the globe. Miami’s luxury evolution has seen it constantly attract high net worth individuals (HNWIs) and this seems to be on the rise. Miami’s attraction of HNWIs has a direct effect on its Real Estate Investors. UK based Global Wealth Researchers Knight Frank made an attempt to answer this question in regards to Miami’s quality of life and several other indicators.
Why is Miami an Important City for HNWIs
The research by Knight Frank considered a number of factors in determining which cities play an important role for the world’s ultra rich.
• Each city’s individual Ultra High Net Worth Individuals (UHNWIs) population count – As of this writing, only about 229 UHNWIs resided in Miami. This is significantly lower than other cities like New York, San Francisco, Boston, Chicago and Houston. Miami is however on fast and gradual rise in this luxury cities list and considering it only started getting attention recently, its increase in popularity is an important factor. There is an increase in the number of Latin Americans and Europeans who are permanently establishing themselves in Miami and as a result, we can expect the number of UHNWIs to increase.
• The Cities’ Important Economic Activity and Business Links – Miami is famous for its “Fun in the sun” but has gradually transformed into a Global Business Hub promoting itself as both a business hub and holiday destination. South of New York City, Miami has the largest concentration of international banks as well as an ever increasing number of international establishments setting up their headquarters and Latin American Hubs in the city of Miami.
• Quality of Life / Lifestyle Offer – Miami earned it’s famous for one main reason, it’s lifestyle. Miami follows the “work hard, play hard” and true to this,, it is rated by Forbes as the happiest place to work in the United States. Miami has amazing nightlife, beaches, all year sunshine, amazing real estate industry and high end restaurants. Miami’s has a recently budding luxury fashion scene and many international events are now being held in Miami.
Real Estate Investments and Ultra High Net Worth Individuals
The 2014 Wealth Report, more than half of all the wealth advisors who took part in an Attitude Survey were keen to predict that UHNWI investing in Miami’s real estate would increase, and true to this, 40% of the respondents confirmed that this had actually happened. Private investors make up a quarter if all investments into commercial property. They hold the same quota for residential investments as well.
The Unites States enjoy particular interest from Chinese and South American investors. Miami in particular has sparked a lot of interest from Latin American private investors. Demand is mainly focused on the real estate industry but there is a gradual rise in interest towards commercial properties. Miami is also under the radar of wealthy Chinese investors stealing interest from Brisbane, Frankfurt, Manchester, London, Sydney and New York. Real Estate prices in Miami are lower than those in Shanghai, China by 25%. A key component of Miami is the cultural diversity and the quality of life that is on offer, and this serves as an important attraction feature for Chinese investors.
Miami is considered an affordable destination compared to other luxury destinations around the world. It also provides some of the best ocean views in the entire list of the world’s luxury destinations. Miami also has lower real estate taxes and attractive apartment and condominium prices that is making the city attractive to New Yorkers. The United states has the highest interest from wealthy private investors after Singapore and London. Miami is a key destination and as a result, benefits from Latin American and Chinese investors.