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Miami Dade County
real estate market consistently ranks in the top 15 markets for price appreciation. Miami residential real estate increased in value 11.12% for the year 2003. The Miami market appreciated 58.06% over the last five years. As of 2005, the Miami area is witnessing its largest real estate boom since the 1920s.
There are several strong and ongoing market drivers that combine to deliver consistent strong price appreciation. Those drivers include:
Market Driver
Stable Local Employment
Miami Dade County has a solid and growing base of local employment in import / export, travel and leisure, health care, and financial services.
Population Growth
Government statisticians expect more than 300,000 new residents to migrate to Florida each year.
Most Popular Retirement Destination
South Florida is the most popular retirement destination on the eastern seaboard. With the “baby boom” generation retiring, more and more people will immigrate to Florida.
Popular Vacation and Second Home Location
Many professionals in the northeast choose to own vacation or investment real estate in South Florida.
Latin American Investment
Capital flight from Latin America has long been a significant contributor to the local real estate market.
European Investment
Many Europeans continue to bring real estate investment capital to South Florida to take advantage of favorable exchange rates.
All of these different market segments and drivers come together to create a diversified real estate market. The diversification of the market reduces the risk and works together to deliver consistent strong returns. In addition, the rental market at the low-end is large and stable, which is particularly important to investors pursuing the Buy and Hold Income Investment Model.
For commercial real estate, the region is not only a national, but also an international economic hot spot, and is one of the top markets in the U.S. for real estate investment. Investors recognize South Florida as a market in which demand is likely to far outpace supply due to strong business and population growth and a finite potential for development due to geographical barriers.
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