High demand: Miami’s housing market was the fourth most valuable in the country in 2017, and commercial and industrial are booming Miami-Dade County’s real estate sector has always been a paragon of the South Florida market. According to the U.S. Census Bureau, Miami ranked 14th for the largest population growth from 2015 to 2016. From April 2010 to July 2016, the county population grew 8.6 percent, increasing from 2,496,435 to 2,712,945 people. Though there are a variety of factors that can explain this surge in population, one thing is certain: this is good news for the Miami real estate market. September’s Hurricane Irma had a minimal effect on the market, and while 2017 was slow compared to previous years due to saturated inventories, there have still been great opportunities. In fact, Miami was ranked the country’s fourth most valuable housing market at $864.2 billion at the end of 2017 according to a Zillow report, trailing behind Los Angeles, New York and Washington, D.C. While increases in rents and a lack of affordable housing have become obstacles for those entering the market, people are buying now more than ever. In terms of commercial real estate, office, retail and industrial vacancies have consistently fallen due to a growing population and continuously increasing 42 | Invest: Miami 2018 | REAL ESTATE
demand. Foreign investment in Miami-Dade has also gone up approximately 15 percent from 2016. Latin flavor Despite challenges in 2017, Miami’s real estate market continues to offer a solid value proposition for investors. Many factors contribute to this, including a strong U.S. dollar, continuing unrest in Latin America and governmental elections. Currency exchange is affecting Miami real estate. Foreign buyers, especially those from Latin America, have long been a stabilizing force in the Miami market, and for those countries whose currencies have fallen against the U.S. dollar, investors are facing sharply higher prices. While some Latin American investors are retreating, others think the dollar is only going to continue to strengthen and are poised to act quickly. “In South Florida, a place that attracts a lot of foreign investors, the power of the dollar and the financial/ political problems of foreign countries both have a huge impact on real estate sales,” Giampiero Di Persia, Miami CEO at Poltrona Frau Group, told Invest:. “In Miami, this is reflected most specifically in condo