Condos for sale in Miami and Dubai
Miami, Florida, and Dubai, United Arab Emirates, are separated by thousands of miles, geographical differences, cultural differences, and political landscapes. However, these two sunshine cities have more in common than you might think.
First, the weather and climate. Both cities have hot and humid summers and blissful winters. This is what attracts second home buyers who come from colder regions. For Miami it’s from the North East and for Dubai from Europe and UK. Miami has no city or state tax while Dubai is even better, with no income tax and no capital gains tax. Thirdly, both cities are leading in new developments and luxury high-rises. Buyers are spoilt for choices when it comes time to buy condos in these cities. They have everything from architectural wonders by Zaha Hadid to city skyscrapers to waterfront marvels.
There are some best practices for identifying and acquiring the perfect condo in these two sun-filled cities. Here’s how to purchase condos in Miami or Dubai.
Trusted developers are the best choice
The first rule is to work with a reputable developer. It can be tempting to choose something that looks good on paper, with so many off-plan developments popping up in both cities. Know your developer. If you are buying pre-construction, make sure that the developer is a reliable one. Don’t let off-site galleries fool you; the final product is often not as good as the model. When assessing the quality of pre-construction, it is best to check a completed building by the same developer. Also, carefully review the contract spec sheet to ensure that the details are in line with the model or show home. If you’re still hesitant about purchasing off-plan, choose a property that has been completed or is at the end of its development phase.
Location is important
There are many options in both Miami and Dubai, which can be confusing for homebuyers. Both cities are growing and new communities are being formed, unlike more established markets such as New York City or Los Angeles where there is no vacant land. It is important to buy in the right location when buying property in Miami or Dubai. Waterfront properties are some of the most desirable real estate in these sunny cities. Waterfront properties are special because there are only a few units that have ocean views, which increases the value of future resale and creates a higher demand. Some waterfront properties are worth more because they have a view. In Miami’s South Beach and Dubai, waterfront properties with easy access to the beach and are popular for Airbnb and short term rentals.
If short-term rentals is your investment plan, make sure the HOA of the building allows it. Brickell and Downtown Miami both have a lot to offer city-slickers. Brickell may be more established, but Downtown Miami is undergoing a revitalization with some landmark developments. One Thousand Museum, a new luxury development, boasts a helipad, a sky lounge and a wellness center. It upgraded Key Biscayne Boulevard, boasted a record-breaking number of area, with David Beckham purchasing the 10,000-square-foot penthouse for $20 million. Downtown Dubai, home to the tallest building in the world and its largest mall, is always popular. The rule of thumb is that the closer you are to Burj Khalifa, the more valuable the property is. The most expensive condos in Dubai offer the best views.
What is your intent?
It is important to understand your goals, both short and long term, before making a wise investment in the sun cities. You will have to make a different choice if you plan on using the condo for six months per year as opposed to a week. Serviced condos are an excellent investment for those who want to invest without having to do much. Miami and Dubai both have luxury condominiums that are serviced by reputable hotel operators, such as the Ritz-Carlton or Edition. You can rent the condo out to a hotel and use it for a few weeks each year. There are a few things to watch out for; high management and HOA costs, and that the property will be used off-peak. (No major holidays). However, luxury condos command higher rents. Pre-construction is a good option if you are looking for long term appreciation. The lower the purchase price is, the farther out the delivery date. If you are looking for high rental returns then a condo with a tenant already in place is the best investment.
Always buy prime units
Condos differ from single-family houses in that they may have hundreds of units. The more units there are in a development, the more it’s important to purchase the best units. What do you mean by that? Consider what would be most appealing to a buyer – the best view, the best floor plan and avoid the lowest floors in skyscrapers as the higher floors are more in demand on the resale markets. You may want to consider a boutique project if you don’t like high-rises or dense living. In Miami, Villa Valencia is a small development with 39 units and 19,000 square foot of amenities. Single-building projects are available in Dubai at prime locations, such as Four Seasons Residences on Jumeirah Beach or One Palm Jumeirah.
What the current market needs and wants
The fast-paced, ever-changing dynamic of the market is another commonality between these two sunshine cities. Housing needs in both cities can change as they continue to grow. It is important to know the economic and social factors that drive the market.
Miami, for example, has seen a recent relocation of corporate headquarters from New York City and a boom in technology during the Covid 19 era. Also, more people are working at home permanently, so there will be a high demand for office condos. Dubai has taken advantage of the exodus to the UK and Europe for two reasons: the tax benefits and the opportunity to make a much bigger profit than at home. Tax advantages allow for high rental yields, so condos that have a 6-8% return are highly feasible.
All real estate investments carry some risk. However, if you want to achieve the best possible outcome in these sunny cities, it is important to do your due diligence and communicate with a local agent who has been trained by a reputable brokerage.