Miami real estate experts share the best places to buy luxury homes as housing bubble risk rises

Since the pandemic, prices in Miami have moved in one direction: virtually vertical.

Now, the threat of a bubble has cautious buyers holding their breath. “Miami now shows the highest bubble risk among the cities in this study,” revealed the UBS Global Real Estate Bubble Index 2024. Miami beat out Tokyo and Zurich for the no. 1. “Boosted by a booming luxury market, prices in Miami have risen almost 50% in real terms since the end of 2019, 7% of which was in the last four quarters.”

But brokers say the smart money needn’t fear: bubble-proof properties abound — if you know where to look. “Single-family waterfront properties are something you can’t duplicate,” says Ana Teresa Rodriguez, founder and CEO of ATR Luxury Homes Group at Coldwell Banker Realty. “Whether it’s a canal, a bay or the ocean, if it’s on water, it’s a win.”

As examples, she points to Jeff Bezos’ big-ticket deals at Indian Creek and David and Victoria Beckham’s recent purchase of an $80 million megamansion along the water in Miami Beach. “They know where to put their money,” she says.

To break even, or just weather a financial storm, Rodriguez recommends buying in slightly off-the-radar areas like Bay Point, Miami Shores and the Old Cutler Bay section of Coral Gables. She is particularly bullish on Bay Point, where she lists Casa Exumas at 4241 Palm Lane for $20 million.

That six-bedroom, seven-bathroom, 6,334-square-foot home comes with 85 feet of waterfront and a private open dock. “If I were to invest my money right now, it would be in Bay Point,” she says.

To the south, at Old Cutler Bay, a waterfront property at 9320 Gallardo St. the eight-bed, nine-bath, 8,360-square-footer is asking $16.9 million with Douglas Elliman’s Lourdes Alatriste. It comes with an enviable 100-foot dock that offers direct ocean access.

Meanwhile, Elliman broker Ruthie Assouline is a bubble skeptic. “Sunny Isles and Brickell, where you have high density and a lot of inventory, maybe you could see a bubble there. But in low inventory areas I just don’t see it.”

But to avoid any bubble problems, she recommends focusing on homes in areas where inventory is already tight and likely to tighten, eg. Bal Harbour, the main beach of Miami and the (four) Sunset Islands. “In those areas, more retail is coming, more hospitality, more lifestyle is coming, and you don’t have as many houses,” she says.

At Sunset Island III, 1510 W. 23rd St. is on the market with Julian Johnston of the Corcoran Group for $35 million. A stroll away from the restaurants and retail of Sunset Harbor’s shops, the five-bed, six-bath, 6,290-square-foot deck comes with 90 feet of waterfront and a private dock—all the ingredients to make sure you’re still cruising. if the bubble bursts.