Is Buying a Condo in Miami a Good Investment?

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

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

BrickellBrickell

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

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

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

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

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

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.

ARE WE FRIENDS ON SOCIAL MEDIA?
📣 Connect with us on InstagramTikTok and YouTube📣


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.

Contact Us
Sep Niakan
Broker / Team Lead
Request Info
By sending you agree to CondoBlackBook's Terms of Use

Your Miami Condo Awaits

Recent Posts

Video: Inside Tour of The Residences at Mandarin Oriental Miami
Video Blog Video: Inside Tour of The Residences at Mandarin Oriental Miami
Eager to bring you an exclusive preview of the interiors, finishes, and other unique offerings available at The Residences at Mandarin Oriental Miami, we gathered our crew and headed straight to their newly opened sales gallery perched onsite surrounded by Biscayne Bay where the new residential tower will rise. Join us for an insider look at all the spoils and luxuries that await you in Brickell Key’s finest, most exclusive, and thoughtfully designed residences yet. In this video, Sep Niakan, veteran Miami real estate agent and Founding Broker of Blackbook Properties & condoblackbook.com, sits down with Adrian Gonzalez of the Mandarin Oriental Miami Residences for a quick chat and in-depth tour and review of the interiors, finishes and fixtures. Watch now to discover what sets this island sanctuary apart and why it deserves to be your prized residence.   — Sky Homes at The Residences at Mandarin Oriental With no more than five residences per floor and two-bedroom floor plans...
Brickell vs South Beach: Which Miami Neighborhood is Best for Luxury Living?
Lifestyle Brickell vs South Beach: Which Miami Neighborhood is Best for Luxury Living?
One is known for its legendary beaches and nightlife, the other for being the Manhattan of the South. But what’s it like to live these two famous Miami neighborhoods? Should you live in Brickell or South Beach? If you’re considering a move to Miami or the South Florida area, and want to know more about the basic differences between living in Brickell vs South Beach (SoBe), here’s our exclusive Insider review of these two iconic Miami neighborhoods to help you decide. — Lifestyle Differences Between South Beach and Brickell South Pointe - South Beach Of course, there is going to be some differences between these two neighborhoods, despite being less about 6 miles away from each other. The Brickell lifestyle is definitely more urban and corporate-chic compared to the laid-back beachy lifestyle of South Beach. Living in Brickell, like any metropolitan and financial district in a big U.S. city, you’ll see your fair share of Miami’s best-dressed professionals darting back and forth...
Q3 2024 Miami Luxury Condo Market Summary: Sales Down, Prices Up in Buyer’s Market
Real Estate News Q3 2024 Miami Luxury Condo Market Summary: Sales Down, Prices Up in Buyer’s Market
What’s Miami’s luxury real estate market been up to? Well, with an expected slowdown after a high-paced second quarter, Miami’s luxury housing market downshifted into a softer cycle in Q3 2024.  While there was a decline in sales volume, prices increased and the average number of days on the market remained consistent year-over-year. This indicates that Miami's luxury condo market remained steady even as it has transitioned into a buyer's market with moderate surplus of luxury inventory. But another trend has emerged, and that is the Miami market has established a new definition of luxury.   This third quarter, the combined neighborhood of Coconut Grove & Coral Gables, continued outperforming all other neighborhoods in our quarterly analysis by reporting the highest percentage sales growth, fastest time to sell/lowest days on market, and lowest levels of inventory.  As we head into the 4th quarter, which is historically known to be the slowest of the year, and with the...
Video Blog: Top 5 Luxury Condos in South of Fifth, Miami Beach
Real Estate News Video Blog: Top 5 Luxury Condos in South of Fifth, Miami Beach
Miami Beach attracts residents with its vibrant energy and stunning beaches, Art Deco architecture, and nightlife, but for those seeking an exclusive haven of luxury and tranquility, South of Fifth (SoFi) is the neighborhood to be in. This coveted area, nestled at the southern tip of Miami Beach, boasts pristine beaches, upscale dining, a beautiful park, and a collection of the most prestigious condo residences in the city. In our latest video, Sep Niakan, founding broker of Blackbook Properties & condoblackbook.com and veteran Miami real estate agent, gives you a rundown of the five most luxurious (and expensive) South of Fifth condos for your consideration. Take a look!   If one (or more!) of the buildings in the video has caught your eye, don’t hesitate to reach us by phone, email, or text and we’ll be happy to help you explore available residential options.  For a more detailed look, these are the most luxurious South of Fifth condos that make up our list: 5. ICON...
Video: Viceroy Residences Miami, Your Luxury Oasis in Brickell
Video Blog Video: Viceroy Residences Miami, Your Luxury Oasis in Brickell
Dive into a world of luxury at Viceroy Residences Miami, a new condo development redefining sophisticated living in the heart of Brickell. More than a high-rise, Viceroy offers a haven of tranquility and exclusivity, with a resort-style experience in the middle of the vibrant energy of Miami's financial district. In our latest video, Sep Niakan, veteran Miami real estate agent and Founding Broker of Blackbook Properties & condoblackbook.com, sits down with Valeria Lugo, VP of Sales for Viceroy Brickell to get an inside scoop on all the details that make this project one of the most anticipated in the city. Take a look! The new Viceroy Brickell will rise 45 stories and have 442 fully finished residences, including studios, one-, and two-bedroom units, with the penthouse collection featuring three bedrooms. Units will range from 485 square feet to 1,286 square feet, excluding penthouses. Also, the building will be part of a three-tower luxury complex which includes the opulent...
September 2024: Miami New Development and Pre-Construction Condo Update
Preconstruction September 2024: Miami New Development and Pre-Construction Condo Update
A total of six Miami pre-construction projects broke ground this September, of which three are located in Miami’s coveted Bay Harbor Islands – Solina Bay Harbor, the Bay Harbor Towers, and La Maré Signature Collection. After almost a year of inactivity, Abbhi Capital’s condo-hotel planned for Downtown Miami pushed for new permits. Midtown Development proposed a massive redevelopment of Coral Gables’ popular Sunset Place. And, three new condo projects secured key approvals. This month, we also had Midtown’s Standard Residences and Grove Isle’s Vita Residences top off ahead of their 2025 completion. Read on to find out which other condo projects broke ground this month, along with details on other updates, in our monthly Miami condo pre-construction news roundup for September 2024: September 2024 – Miami Condo Pre-Construction Market at a Glance Broke Ground Rivage – Bal Harbour West Eleventh Residences – Downtown Miami Residences at Six Fisher Island – Fisher Island Solina...