Miami is a prime living destination with stunning year-round weather and no state income tax. But is buying a condo in Miami a good investment? The resounding answer is yes! Whether you use it as a primary residence, a second home, or vacation home, or purely as an investment property similar to a business, investing in a Miami condo can be a lucrative opportunity.

Table of Contents

• Miami, the Top Choice
• Discover the Benefits of Investing in Miami Condos
• Best Places to Buy a Condo in Miami
• Considerations for Investing in a Miami Condo
• So, Is Buying a Condo in Miami a Good Investment?
• Frequently Asked Questions
  

Let’s present you with some hard facts and figures on why a Miami condo might be your best bet in today’s market.

— Miami, the Top Choice

Brickell Key - Brickell

Over the last few years, Miami has experienced a higher influx of residents than most major metropolitan areas in the United States, fueling housing demand. Last year, as many as 21,500 people exchanged out-of-state driver’s licenses for Florida licenses and a report from the National Association of Realtors noted that Miami saw astonishing population gains of nearly 60% in 2022 compared to 2019, with many of these resulting in condo purchases.

Furthermore, the city’s real estate market has a proven reputation for consistency over the past 10 years, even dethroning New York as the second biggest housing market in the US. And this, plus an often more favorable cost of living, a beautiful landscape that attracts visitors year-round, and the city’s unique international appeal with its arts and culture, make Miami a great real estate investment compared to similar cities.

Buying in Miami, you can expect a solid return on investment given our sustained, above-average appreciation rate. In fact, according to the U.S. CoreLogic S&P Case-Shiller Index, Miami is tied for third in the US for annual home price appreciation. Miami’s three-year home price appreciation is a whopping 14.87%.

So, if you’re considering investing in Miami, a condo is one of the best bets you can make.

— Discover the Benefits of Investing in Miami Condos

Coconut Grove, Miami

For out-of-town investors seeking modern, secure, low-maintenance options, it’s a compelling investment opportunity. With state-of-the-art structures, enhanced security features, lower maintenance compared to single-family homes, and maintenance management options, condos offer a convenient and attractive investment avenue. 

Let's delve into Miami condos' distinct advantages.

• Modern and low maintenance: Condos options typically include newer structures, reducing the need for extensive maintenance. This aspect makes them an attractive option compared to owning a home. Some of the most potent investment opportunities in Miami include luxurious pre-construction condos, which allow investors to be the first owners of newly built towers.
• Enhanced security: Given that a lot of burglaries affect residential properties, enjoy the heightened security of a condo with building-wide measures such as 24/7 guards and advanced technological systems. This provides a sense of safety and peace of mind for investors who may not always be on-site.
• Ease of maintenance: Condo living means the building management takes care of many aspects of maintenance and upkeep, thus freeing investors to focus primarily on maintaining the interior of their unit. For example, management would handle the upkeep of on-site amenities, such as a pool, gym, common areas, or more specific structure repairs like roofs, railings, lawn maintenance, etc.
• Reduced vacancy concerns: Condo investors often experience less vacancy stress. An empty residential home can feel vulnerable, but the shared living environment of a condo building means issues such as leaks are promptly reported by vigilant neighbors or staff, minimizing potential problems. This reduced vulnerability adds to the overall appeal for investors. 
• Steady rate of return: One of the first things you’ll want to know is what kind of returns you typically get. In our experience, we have noticed that investors typically see a 3-5% return for annual rental condos and a 5-8% cash-on-cash return for daily, seasonal, or vacation rentals. Thus, the potential for a steady rate of return enhances the attractiveness of Miami condos as an investment option. However, this could vary on a case-to-case basis. If you want to know more about the current state of the short-term rental market and your possible returns, our expert team will be more than happy to help. Just give us a call or shoot us a text!

— Best Places to Buy a Condo in Miami

Coral Gables, Miami

When it comes to investing in Miami real estate, location is one of the biggest factors to consider, especially now that so many condominiums allow Airbnb. Not all locations will offer the same investment potential, so let’s take a moment to consider the best places to buy a condo in Miami.

Brickell

The financial district of Miami is one of the most sought-after neighborhoods for short-term rentals given its business travel nature. It offers plenty of newly built condo towers and condo hotels that allow for daily or monthly rentals, at various price points, such as Icon Brickell, Four Seasons Brickell, My Brickell, Brickell on the River, and others.\

And is it also flush with luxury pre-construction projects bursting with amenities, such as the branded Mercedes-Benz Places, Viceroy Brickell, the modern oasis of 2200 Brickell, or Domus Brickell Park, exclusively designed to appeal to these types of digital nomads, traveling executives and vacationers looking to staying in the heart of the city. 

Downtown Miami

This neighborhood offers significant investment potential, especially with the upcoming Miami Worldcenter and its several buildings in the works. It has the biggest sports, cultural, and arts venues in the city, as well as Port Miami, making it very desirable for visitors. Here, fully turnkey projects with no rental restrictions are the most attractive, including some newly completely projects like The Elser and Gale Hotel & Residences, plus an impressive list of pre-construction projects like HUB Miami Residences, 14 Roc, and Jem Private Residences, to name just a few.

Edgewater

One of our favorite hidden-gem neighborhoods and one of the best located in all of Miami, Edgewater is opening up to investment condos with its first flexible rental project Vida Residences, and the recently announced Edge House. These are preconstruction investment opportunities you’ll want to take advantage of. And if you are looking for existing buildings that offer rentals, both long and short-term, there are many options here. It’s a very popular neighborhood for young professionals and established young families, making it a great option for an investment rental, or second home. 

Miami Beach

Due to the higher rate of return on seasonal and vacation rentals, Miami Beach is a good place to invest. While South Beach has limited areas where daily rentals are allowed, annual rentals are consistently strong in all of Miami Beach, making it a great option for long-term rentals. 

And Miami Beach's new construction projects in North Beach, such as 72 Park or Palma Miami Beach, are designed with no rental restrictions to appeal to short-term guests, presenting ideal investment potential, especially with the beach and park just steps away.

Coconut Grove

Perfectly poised on Biscayne Bay and known for its many marinas and sailing clubs, historic Coconut Grove offers a handful of already existing condos, such as The Ritz Carlton Residences Coconut Grove, the three towers at Park Grove Residences, and there is also the brand new Mr. C Residences twin towers. While daily rentals aren’t as common in the Grove, annual rentals are highly coveted and consistently deliver top-dollar rents for owners. 

Coral Gables

Known for its lively academic and quaint downtown area, Coral Gables has long been a haven for families, students and university faculty, and those who want to live in a beautifully planned city. Sophisticated projects such as the recently launched Cassia Miami will be one of the few projects that offer short-term rentals in this elegant area. The Avenue Coral Gables is also offering turnkey, fully furnished residences in the heart of Coral Gables. 

— Considerations for Investing in a Miami Condo

Downtown, Miami

While Miami condos offer clear investment opportunities, it's crucial to consider specific factors. Your unique situation and investment goals, how you plan to use the condo, the choice and size of the condo, and the location all play a significant role and will help you make an informed decision. Here are some aspects you should consider before buying.

• Condo association fees: Owning a condo means being part of a Condo Association, like a Home Owners Association (HOA),  that charges a monthly fee for the general upkeep of the property and other activities. Before investing, you should find out as much as you can about the HOA and its finances so you can decide if it is right for you.
• Insurance costs: Depending on where you decide to buy a Miami condo for investment purposes, you will need to keep in mind that you be required to carry various types of insurance, including homeowners insurance and hurricane insurance. Consult with knowledgeable real estate agents or insurance agents licensed in the state of Florida to give you more specific information and details.
• No land ownership: When you buy a condo, you only buy the property, not the land beneath it. Alternatively, you and the other condo owners own an interest in the land together. However, if you are not interested in outdoor maintenance, this could actually be an advantage. With plenty of iconic landscape architects designing condo projects around Miami, your investment property will still enjoy the lush tropical oasis for which Miami is known.
• Short-term rental and investment condo management: If you are planning to buy a condo investment for short-term rental income, there are many considerations about how to manage your property as well as your bookings, depending on the condo building itself. Some newer buildings have in-house management programs or hotel programs, but check out our in-depth guide to short-term rentals, or simply call one of our expert short-term rental realtors on staff, who can guide you through the process and help you identify the best investment options for you. 

— So, Is Buying a Condo in Miami a Good Investment?

Edgewater, Miami

Investing in a Miami condo is an excellent opportunity, backed by many advantages. From modern aesthetics and enhanced security to hassle-free maintenance and a strong rate of return, the appeal is evident.

Notably, Miami's soaring population growth and consistent real estate market performance underscore its status as a prime investment destination. While prudent considerations are essential, the overall consensus points toward investing in Miami condos as a wise and lucrative choice for those seeking lasting returns and a vibrant living experience.

Moreover, economic indicators in Miami paint a positive picture for real estate investors. The city's strong job market and steady economic growth contribute to the stability of the real estate sector. With industries like tourism, technology, and finance flourishing and big names like Lionel Messi or Jeff Bezos moving to Miami, the demand for housing, especially in sought-after locations like Brickell and Downtown Miami, continues to rise.

This economic vitality not only ensures sustained property appreciation but also underscores Miami's resilience against market downturns. Investors can capitalize on this favorable economic climate, making a condo purchase in Miami an even more promising and secure investment.

— Frequently Asked Questions

Miami Beach, Miami

Is it Better to Buy a House or Condo in Miami?

While there are many pros and cons to owning both homes and condos in Miami, it is arguably better to own a condo in Miami due to their ease of maintenance, enhanced security, reduced vacancy concerns, and steady rate of returns.

Is Owning a Condo in Florida Worth It?

Yes, owning a condo in Florida pays off due to the beautiful year-round weather, lack of state income tax attracting many new renters and buyers, access to an abundance of beaches and waterfront, and the investment potential of the condo. 

The process of buying a condo in Florida is relatively simple, especially with the help of a trusted real estate agent. If you’d like to know more about investment opportunities in Miami, we are your best agent and brokerage.

We specialize in short-term and daily rental condo investments. If you are interested in purchasing a condo for short-term rental income, please call us at (786) 930-4220 to help you in your Miami or Miami Beach condo or property search.