The Miami Beach luxury real estate market has emerged from the COVID-driven buying surge into a more stable environment, with buyers regaining leverage for the first time in years.
Michael Leduc, a real estate agent with ONE Sotheby’s International Realty who has spent a decade working in Miami Beach’s luxury waterfront sector, notes a clear shift away from the recent seller-dominated landscape. “Now it’s more of an equilibrium market where I would even say it’s more of a buyer market,” Leduc explains. “We definitely have more room in negotiation when you represent a buyer, just because the inventory alone went up.”
Current inventory levels reflect this change. Single-family home supply has grown to six months, and condominium inventory now stands at 14 months—substantially higher than during the pandemic, when properties often sold within days of listing.
Miami Beach’s Evolution from Village to Global City
This transformation is not limited to market conditions, but also defines the character of Miami Beach itself. When Leduc moved from New York City in 2015, he encountered a slower, more intimate atmosphere.
“The feeling 10 years ago was more of a village,” he recalls. “I was coming from a big city, New York, and the pace was definitely slower. It took me a little bit to adapt, because the culture is different.”
The pandemic accelerated Miami Beach’s emergence as a cosmopolitan hub. “Now, after COVID, everyone is here and top performers are here in different industries like finance, marketing, AI. It’s also a tech hub now, so the pace is definitely faster.”
This shift has changed the buyer base. While Miami Beach once catered mainly to international buyers seeking second homes, it now attracts more high-net-worth individuals relocating for lifestyle and tax reasons, with many purchasing primary residences.
Changing Patterns Among International Buyers
International buyer trends have also evolved. South Americans remain steady participants, drawn by Miami’s reputation and the safety of placing assets in the U.S., but other groups have shifted in response to global economic factors.
“When the dollar became stronger, we saw less of the Europeans,” Leduc notes. Russian buyers, previously significant players, have largely withdrawn due to geopolitical issues. Recently, another group has emerged.
“Now we are also witnessing the Canadians coming. I think it’s related to the politics there, high net worth individuals, some of them are moving here,” Leduc says. These Canadian buyers are not typical vacation homeowners, but affluent individuals making permanent moves for tax purposes. The trend is confined to those with the means to manage businesses remotely and handle visa logistics.
Tiers in the Luxury Market: Trophy Properties and Compromise Assets
The luxury waterfront market has developed distinct segments, affecting pricing and time on market. At the top are “trophy houses”—corner lots with open bay views, often serving as statement homes that reflect the owner’s status. These properties continue to sell, though negotiations are more common.
Properties with less desirable features face a different market. Homes on smaller canals, those needing renovation, or with outdated layouts from previous decades must adjust pricing or expect longer sale periods.
The contrast is clear. Exceptional homes can sell within three weeks, while others remain unsold for years. Leduc recently closed a sale on a 15,000-square-foot home that took two and a half years to sell at $22 million, despite high-end renovations by London-based Arjun, a company known for private jet interiors. The challenge was a view of an older condominium across the canal.
“It took someone really appreciating the home, because it’s truly an incredible home,” Leduc says. “Most people loved the home but were a little bit disappointed with the view on the other side of the canal.”
Cash Transactions Dominate the Ultra-Luxury Segment
The upper end of the market is dominated by cash transactions, with about 90% of deals over $10 million initially structured as cash. Still, many buyers employ sophisticated financing strategies.
“Most of these transactions, although it’s a cash offer and for the seller doesn’t matter, usually during the process until closing or right after, but usually right before, to save the cost, they will bring a mortgage often against either a portfolio of stocks,” Leduc explains.
Traditional mortgages are less attractive due to high interest rates—currently around 6.5%—which, combined with property taxes averaging 1.8% annually, make financing a $20 million property expensive to carry.
Climate Resilience and Insurance Approaches
Despite Miami Beach’s waterfront location and climate concerns, buyers at the ultra-luxury level show little hesitation about environmental risks. New builds are designed to meet updated codes, featuring elevated foundations and improved storm resistance.
“New constructions obviously are very well prepared,” Leduc says, describing a recent property with a sea wall raised to 14 feet, higher than most current standards.
For existing homes at lower elevations, risk assessments have changed. “Following discussions with general contractors, even if the water comes to the home, it’s only for an hour or two, and yes, you most likely going to have to change the bottom of the dry walls. It’s going to be some expense, but it’s nothing crazy.”
Many buyers also opt to self-insure, accepting the risk rather than paying annual premiums that can reach $50,000 for luxury waterfront properties.
Branded Residences Offer a New Kind of Luxury
Branded luxury residences such as St. Regis, Mandarin Oriental, and Four Seasons have created a premium market segment, commanding higher prices based on lifestyle positioning.
“Yes, branded buildings perform usually very well. The same way luxury clothing and handbags and watches perform very well, the condo market, branded condo market, is also performing very well,” Leduc observes.
South American buyers are particularly drawn to these branded properties, but their appeal crosses demographics. The success of these projects comes from comprehensive lifestyle offerings, not just amenities. Some developments provide personal assistants for residents, handling everything from shopping to car maintenance.
Privacy Drives Off-Market Transactions
Roughly 20% of luxury transactions occur off-market, primarily due to privacy concerns. Sellers often want to avoid the showing process, while buyers value discretion.
Leduc notes that off-market sales may not bring top dollar. “When you want the top dollars, we will need to bring the most eyeballs possible. Statistically, to get the most money for your home, it’s often a good idea to put it on the market.”
The ONE Sotheby’s network, with 30,000 offices and hundreds of thousands of brokers worldwide, offers significant reach, making public marketing attractive for sellers seeking maximum exposure.
Looking Ahead: A Stable and Active Market
As Miami Beach’s luxury market enters 2026, Leduc expects steady activity without major swings. He anticipates some additional buyers from New York following recent political changes but does not predict another wave like that seen during COVID.
“I think we are going to see a couple more buyers coming from New York. Nothing to compare with COVID, but I think it will be an active market. It’s already an active market. We are selling homes right now.”
The current landscape marks a return to more traditional luxury market dynamics, exceptional properties still attract premium prices and quick sales, but buyers have more negotiating power and time to make decisions. For a market that experienced extreme volatility during the pandemic, this new equilibrium may offer the stability both buyers and sellers need.
