Why are home prices rising in South Florida? The arrival of Lionel Messi is only one of the causes of the increase in real estate values

Costs in the South Florida real estate market are becoming a topic of interest given the high numbers for both rental and purchase properties, which is why many want to know how much homes in Miami cost.

During the first half of the year, costs fluctuated in an upward trend, according to statistics obtained by El Nuevo Herald, while at the same time there was a decline in real estate sales in Miami-Dade and Brown due to high costs.

Prices have increased, and buyers are decreasing due to high interest rates, according to data from the Miami Association of Realtors cited by the relevant media.

Florida law prohibits foreigners from purchasing real estate

What are the house prices in Miami?

A possible explanation appears in the American press that has to do with the arrival of Lionel Messi, who recently bought a $10.8 million mansion in Fort Lauderdale.

The soccer star officially settled in Miami with his entire family in July after completing his contract with Paris Saint-Germain. Since then, the Messi phenomenon has become a boom in the city, and the media attribute the credit for the increase in costs to the Argentine, which is not entirely true.

In this way, house prices in Miami can reach $418,000 in the case of condominiums and $622,500 in the case of single-family homes, which represents a historic increase for the city according to El Nuevo Herald.

Why are home prices rising in Florida?

The arrival of the Messiah is not the only reason. Although, according to reports from Telemundo 51, real estate sales fell in Miami-Dade County, the increase in prices may be related to the effect of the summer season.

Even so, South Florida remains a favorable environment for doing business, complete with zero state income tax and, last but not least, a warm climate.

“The perception is that Miami is the future,” Ron Shuffield, executive chairman of Berkshire Hathaway HomeServices EWM Realty, commented to the media.

For this reason, metropolitan areas like Fort Lauderdale and West Palm Beach are considered to be in high demand when looking for real estate, especially considering that the unemployment rate in those areas is two percent, according to the federal Bureau of Labor Statistics. quoted by the American media.

These are areas with a strong labor market, which in turn means better working conditions, so potential buyers have an income that allows them to pay their mortgage.

“I think with the demand we have right now and the quality of what we’re seeing, a lot of neighborhoods are improving with redevelopment. Those are all advantages for people who want to come here,” said Ron Shuffield. (AND)