Mark Zuckerberg, the founder of Facebook, paid$ 170 million for a nearly 30 000-square-foot castle that is currently being built on the secret isle of Indian Creek in March for what is currently the most expensive home ever sold in Miami.

However, this is not the most costly home that can be purchased in this city in South Florida.

Relationship investor John Daveney's house in Key Biscayne, which is up for sale for$ 273 million, now holds that record. In reality, if you're a fan of movies, you might understand her.

It appears in the well-known 1983 movie Scarface, which was directed by Brian de Palma and stars Al Pacino as Frank López's abode. Michelle Pfieffer's personality Elvira, who we first see descend in an iconic glass airplane, is first seen here.

Although it is difficult for 99. 9 % of the world's people to take into account paying these exorbitant sums for a home, Miami has quickly become one of the most popular destinations.

According to E. B. ," a large number of high-income persons have moved to Florida for the advantages that living in Miami offers. " The Wall Street Journal's Solomont, a blogger with a focus on the residential real estate sector,

One Sotheby's International Realty, one of the most well-known ultra-luxury home selling organizations in South Florida, claims that there is low crime, a fantastic weather, beautiful areas, and no state taxes are paid.

Along with Zuckerberg, Ivanka, the daughter of President Donald Trump and her husband Jared Kushner, are a few other notable businessmen who have recently relocated to Miami.

When one, two or three prominent business leaders move in, others will see the benefits and adopt, and suddenly they are no longer pioneers, says Solomont. " Unexpectedly, there is a complete group. "

Because sales of homes worth more than$ 60 million are on the rise and the market only grows, Miami's real estate market, according to Mayi De la Vega, has entered" a new era of trophy properties. "

He explains that in our final whole year of sales, which totaled more than US$ 517 million, we had sales of more than US$ 60 million, all with attributes that totaled more than US$ 60 million.

But why Miami, anyway? Why is this city in South Florida for a draw for the wealthiest people in the world?

The epidemic as a turning point

Miami has historically been viewed as a desirable destination for people with excellent fortunes, especially those from Latin America, because of its environment, its beaches, and its fine air communications.

However, it was during the Covid epidemic that Americans began to realize that Florida was a place to work, explains E. B. Solomont.

Florida became one of the first state to remove the mask mandate, raise flexibility limits for people in public areas, and reopen colleges, bars, and restaurants during the epidemic, sparking controversy.

And while these decisions criticized Florida a bit, they even made the state, which is currently led by Republican Ron DeSantis, an ideal place for high-income residents who previously resided in places with many stricter public health laws, such as New York, California, or Illinois.

When you factor in Florida's tax haven, which Florida residents do not spend like other states, Miami quickly gained popularity because of the room and lifestyle as well as the fantastic tax incentive, Solomont explains.

As De la Vega explains, a" combined phenomenon" was born with the introduction of the first eminently well-known characters in the field of technology and business, such as Peter Thiel, co-founder of PayPal, and Ken Griffin, the fund manager of the Citadel.

There is a part of fashion that, he says, "people saying," This individual has the same money as me and bought it, should I buy it too"

In some areas, this resulted in an increase in supply concentrated on the ultra-luxury business and an increase in costs.

Miami residents who are ultramillionaires

There is a distinct rule when it comes to pricing in the real estate industry, according to Mayi de la Vega.

The idea of the threeU's, location, location, and site, is one of the most essential items you learn in real estate.

And in Miami-Dade County, that means having lake or sea views.

Because they are so scarce, Solomont claims," Waterfront qualities command higher prices. " The blogger makes the observation that" there is a situation where you have more clients than waterfront homes available, and until that changes, prices will continue to rise. "

Indian Creek, the most exclusive of Miami's personal islands, is probably the best place to reflect this reality, which, in the eyes of De la Vega," continues to lead in terms of celestial prices. "

Mark Zuckerberg, Jeff Bezos, and Ivanka Trump reside in Indian Creek, known as the "billionaire basement. " The area has its own mayor and police force, and it is entered via a covert light gate guarded by two protect booths, despite not being little larger than New York's Central Park.

Why Indian Creek, if you ask? De la Vega asserts that because it is a personal island, it has many amenities, lots of parking spaces, and is surrounded by water, making it a paradise for boaters, as well as incredible safety.

He claims that it is a "millionaires area" with property that sells for US$ 200 million. " It is a private area with a golf course," he continues.

However, the ultra-luxury business does not just include small, remote communities like Indian Creek: According to the Wall Street Journal, North Bay Road, a around 4-mile-long Miami Beach street home to actors like Shakira, David and Victoria Beckham, has about$ 1. 7 billion in components, making it the road with the highest property value in the entire United States.

In more traditional areas of Miami, like Coconut Grove, Coral Gables, and Key Biscayne, there are also properties worth more than$ 60 million up for sale.

Changes

Bond broker John Devaney says that when he bought the properties that now make up his $237 million residence in Key Biscayne in 2003, he was attracted by the immense heliport of around 1,000 square meters that extends over the water and that was once used by former US president Richard Nixon.

“One day when I was 33 years old I was flying in a helicopter and when I, who grew up in Key Biscayne, saw that helipad I said to myself: 'I would love to have it to land my helicopters.'”

At that time, in a sale that broke all records of the time, he paid US$15 million for the lot where the house is built, and later paid another US$15 million for the adjoining lot.

They were normal pre-pandemic prices in Miami, explains De la Vega. “I remember that one of the properties we sold at that time was Shaquille O’Neill’s on Star Island [another private island located at the entrance to Miami Beach] and it was for US$16 or US$18 million.”

One of the explanations for the excessive increase in property prices in the ultra-luxury market in recent years is the amount of money that the richest have at their disposal.

According to data compiled in the so-called “Inequality Index” by economists at the University of California, Berkeley and the Paris School of Economics, the wealth of the wealthiest 0.1% of the population has multiplied almost 13 times in the last 50 years. For the study, those with fortunes of more than US$43 million were defined as part of the 0.1%.

Solomont says this availability of money triggers what people pay for the things they buy: “Real estate agents say value is what someone is willing to pay for something.”

"For you and me, paying US$1 million for a property may be inconceivable. For others, paying US$10 million would be an exaggeration. But when you have billions in your accounts, buying a US$60 million property may not be something exceptional. Many pay in cash."

“It's not that there isn't a disconnect between what ordinary people can pay for a home and these multimillion-dollar mansions,” Solomont says, “but the volume we see of sales [of more than $60 million] taking place is evidence that there is a market that continues to push the limits.”

According to De la Vega, this growth in higher-value properties is also driving lower-range home prices.

All of this has been directly reflected in the prices paid by ordinary Miami residents: according to the US Bureau of Statistics, the Miami-Ft. Lauderdale-Palm Beach surpassed New York in terms of cost of living in the US according to analysis of 2024 data.

The region known as the “Gold Coast” is now approximately 5% higher than the New York metropolitan area and its suburbs.

Additionally, consumer prices in South Florida have increased 36% since 2019, according to the U.S. Bureau of Labor Statistics.

As reported by the Fox Business channel, housing prices in South Florida have skyrocketed 79% since the pandemic, while the average annual home insurance premium is the highest in the country.

That is why it is not surprising that, after the enormous influx of new residents that occurred as a result of the pandemic, Miami has been losing population in recent years.

Although the ultra-luxury market in Miami seems to have no ceiling, its growth raises doubts among analysts. "At a certain point, people will want to know if there is a bubble. Is it realistic to pay $75 million for a house on the water?" Solomont asks.

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