Columbus International

The Evolution of a Grand Playground – Unveiling the Cultural Renaissance of Miami Beach

By Columbus International,13 November 2023

Miami Beach, the sun-kissed real estate paradise on Florida’s southeastern coast, has long been synonymous with luxury, excess, and a vibrant scene. Behind its glamorous façade, however, lies a city that has undergone a fascinating series of transformations throughout its history. From its origins as a playground for the wealthy elite to social challenges and subsequent rapid ascent, Miami Beach has consistently demonstrated resilience and adaptability. Today, as the city faces new challenges, it prepares for a fresh reinvention, one that embraces cultural enrichment and redefines its very essence.

Miami Beach: A Journey Through Time
Nearly a century ago, in the roaring ’20s, Miami Beach experienced its first real estate boom. Millionaires like Harvey Firestone, J.C. Penney, and Rockwell LaGorce flocked to this three-mile stretch of paradise known as Millionaire’s Row. It was during this period that Art Deco architecture began to take shape, leaving an indelible mark on the city’s identity. The bubble burst with the onset of the Great Depression, plunging Miami Beach into a severe economic crisis. Nevertheless, the city found a way to bounce back.

Revival and Reinvention
In the ’40s and ’50s, Miami Beach witnessed a revival fueled by an influx of retirees and post-war economic boom. The construction of numerous hotels along Collins Avenue propelled the city’s tourism industry. As the ’50s approached, the so-called “Miami Beach experience” was packaged and marketed to the American middle class, losing some of its authentic charm in the process. Nevertheless, Miami Beach pressed on. The city maintained a busy schedule of events, attracting prominent artists like Sinatra’s Rat Pack and the newly discharged army man, Elvis Presley. However, with the rise of countercultural movements and shifting social attitudes, Miami Beach found itself disconnected from the evolving times. Over time, historic communities established themselves, and by the late ’70s, its decline was marked by crime and deteriorating infrastructure. Yet, as in every cycle of transformation, Miami Beach had its moment of rebirth.

Preservation and Passion
In the ’80s, the groundbreaking TV series Miami Vice entered the scene. Debuting in September 1984, it portrayed an exaggerated and glamorous version of the city, showcasing its vibrant energy and enveloping atmosphere. Miami Vice not only saved South Beach from demolition but also played a significant role in shaping Miami Beach’s image. Activists fought passionately to preserve the decaying Art Deco hotels that emerged in Miami Beach towards the end of the Depression era, providing affordable accommodations to snowbirds. Led by Barbara Capitman, these activists succeeded in getting the Art Deco District and its Tropical Deco building inventory listed on the National Register of Historic Places in 1979. This listing ensured the protection of the city’s unique architectural heritage. Additionally, artists, designers, and entrepreneurs recognized the potential of Miami Beach and flocked to the city during its ’90s renaissance. In particular, the fashion industry fell in love with Miami Beach’s dynamic atmosphere and vibrant colors, solidifying its status as a global hotspot for nightlife. During this era, Miami Beach became a magnet for celebrities seeking a subtropical vacation spot away from the spotlight. Icons like Madonna and Gianni Versace were drawn to the allure of this sensual paradise, embracing its vibrant lifestyle and contributing to its aura of mystery. The late ’90s and early 2000s marked the peak of Miami Beach’s transformation. Its reputation as a playground for the rich and famous was solidified, becoming a global hotspot for nightlife. Celebrities and jet-setters from around the world flocked to Miami Beach, attracted by the lively entertainment scene, luxury hotels, and world-renowned restaurants.

Glamour and Sophistication
Over the years, Miami Beach faced the challenge of maintaining a delicate balance. The city had to reconcile its image as a glamorous entertainment hub with the desire to cultivate a more refined and inclusive atmosphere. High rents and the departure of distinctive merchants led to vacant storefronts, especially in coveted areas like Lincoln Road. This departure of small businesses disrupted the city’s unique charm, diminishing its appeal for European and South American visitors who once sought longer vacations with more disposable income.

Cultural Renaissance
Today, Miami Beach stands at a crucial moment, ready to redefine its identity once again. The city aims to shed the reputation of a lawless spring break destination and embrace a cultural renaissance. A recent bond issuance, totaling $97.6 million, is funding improvements to cultural projects like the Miami City Ballet and the Bass Museum of Art. These bonds are secured by property taxes, which have increased in recent years due to Miami Beach’s appeal to the wealthy. The bond issuance represents a significant effort by Miami Beach to transform its image and pivot towards a cultural landscape. The city seeks to attract “cultural tourists” rather than crowds of young vacationers. Miami Beach has seen an increase in residential property values, with nearly a 125% growth in the last decade. The arrival of high-income individuals, including billionaires like Puerto Rican entrepreneur Orlando Bravo, H.I.G. Capital Co-Founder and Co-CEO Sami Mnaymneh, and hedge fund executive Ken Griffin, has led to the development of modern office buildings, new restaurants, and success in hosting international events like Art Basel. Miami Beach has always had a rich cultural base, boasting institutions like the New World Symphony and the Miami Beach Botanical Garden. The recent bond funding will build on this history, promoting the city’s arts and cultural offerings. Investments aim to create an unprecedented growth in museums, theaters, and public performance spaces, further enriching Miami Beach’s vibrant community. As Miami Beach embarks on its latest chapter, the delicate dance between growth and preservation will shape its future, a narrative that carries the potential for enchantment and cautionary tales. The city’s transformative journey serves as a compelling reminder that reinvention is a nuanced dance, requiring a delicate balance between progress and respect for its unique identity.

Valentino’s latest boutique has just landed at 654 Madison Avenue (Source: V Magazine)

By Columbus International,10 November 20239 November 2024

Valentino‘s latest boutique has just landed at 654 Madison Avenue. After introducing their innovative global retail concept in 2022, which revolves around creating distinctive spaces based on a reinterpretation of the building’s structure through various sales experiences and approaches to interior architecture, the new flagship store in Manhattan is now a pivotal destination for Valentino enthusiasts. Boasting a selling space of 1142 sqm, the new establishment is situated on the corner of Madison Avenue and 60th Street. The building spans three floors, including a basement, a ground floor, a mezzanine, and a second floor. Adorned with iconic columns and tall windows, the space is meticulously designed to provide a glimpse into the materials and architectural silhouettes that define the essence of the boutique’s interiors.

Each floor narrates a unique visual story through chromatic compositions and thoughtfully curated materials palettes, incorporating the maison’s signature red tone. Upon entering, customers are welcomed by grand double doors featuring sculptural marble handles, inspired by the work of artisans whose creations are showcased in Valentino stores worldwide. These handles, crafted in ceramic by the artist Massimiliano Pipolo, are also incorporated within the store. Visitors can explore the grand features of the building, including seven-meter-high ceilings, exposed steel columns (spanning all floors), and a rough concrete finish around the perimeter, highlighted by illuminated shelving dedicated to Valentino Garavani Accessories.

The space is intelligently divided into functional zones through bespoke elements, such as a commanding green onyx display unit at the center, and diverse materials like marble carpets and concrete on the floors that delineate specific areas and functions. Towards the rear of the store, various interpretations of the iconic Rosso Valentino are displayed, along with a dedicated area for footwear featuring floors and seating in contrasting travertine red against the luminous onyx and concrete shelving. On the second floor, the Valentino Women Ready-to-Wear collection is showcased in oversized red lacquered wardrobe structures and matching seating, complemented by chequered floors in white Botticino and black Nero Marquina marbles. La nuova boutique di Valentino è appena sbarcata al 654 di Madison Avenue

Source: V Magazine

Top 50 Priciest New York Neighborhoods in Q3 2023: Brooklyn Breaks into the Top 3 for the Second Time This Year

By Columbus International,8 November 2023

In the third quarter of 2023, residential property sales in New York City continued to experience a gradual decline, with both sales numbers and median prices dropping compared to the same period the previous year. By the end of September, the median sale price in NYC stood at $750,000, which was a 1% decrease from the third quarter of 2022. However, the most significant decline was seen in the number of sales, as there were 24% fewer residential transactions in the city compared to the previous year, resulting in approximately 2,400 fewer closed deals in the third quarter of this year.

On a positive note, quarter-over-quarter sales numbers showed an increase of 418 transactions, indicating a seasonal trend similar to 2022 and 2021, where third-quarter sales surpassed those of the second quarter. During the same period, the median sale price remained relatively stable. Nevertheless, the year-to-date data through September revealed a 28% decrease in the number of closed residential deals in NYC compared to the same timeframe in the previous year, with a total of 20,833 sales recorded. Notably, among the top 50 neighborhoods (which included 56 neighborhoods due to some ties), 24 were from Manhattan, 23 from Brooklyn, and nine from Queens. Notably, none of the Bronx neighborhoods made it to the list this quarter, despite the Bronx’s historic appearance in the top 50 during the first quarter of the year. The median sale price in the Bronx was $362,000, marking a 6% decrease from the previous year, which was the most significant year-over-year decline in median sale price among the four boroughs. Across all four boroughs, median sale prices experienced slight declines compared to the previous year, with Queens following the Bronx with a 2% drop, and Brooklyn and Manhattan both seeing 1% decreases. Similarly, overall sales activity decreased in each borough, with Brooklyn experiencing a 26% drop, Manhattan and Queens both recording 24% decreases, and the Bronx seeing a 22% decrease compared to the third quarter of 2022.

Unsurprisingly, Manhattan continued to host some of the most expensive neighborhoods in New York City, with seven out of the top 10 spots. Brooklyn also made its presence felt in the top three, securing two spots. Among the top 10 neighborhoods, seven saw an increase in the median sale price, while sales activity decreased in seven of them. Hudson Yards remained the most expensive neighborhood in NYC with a median sale price of $8,150,000, marking a substantial 39% increase from the previous year. This increase can be attributed to the larger average square footage of properties sold in the third quarter of 2023 compared to the previous year. However, Hudson Yards saw an 8% year-over-year decline in the number of residential deals during the quarter. SoHo secured the second spot with a median sale price of $4.2 million, surpassing TriBeCa in the second quarter of 2023. The median sale price in SoHo was 77% higher than in the third quarter of 2022, although the number of sales decreased significantly by 48% during the same period. Brooklyn’s DUMBO took the third position, with a 60% year-over-year increase in its median sale price, rising from $1,775,000 in the third quarter of 2022 to $2,833,000 in the third quarter of 2023. Hudson Square, TriBeCa, Flatiron District, Red Hook, Little Italy, Theatre District-Times Square, and Greenwood Heights completed the top 10. Manhattan’s median sale price was $1,125,000, while Brooklyn’s median reached $805,000 by the end of the third quarter, with more than half of Brooklyn’s neighborhoods experiencing a drop in median sale prices compared to the previous year.

Notably, DUMBO’s 60% increase in median sale price made it one of the top three neighborhoods, marking the second time a Brooklyn neighborhood achieved this since the first quarter of 2023 when Vinegar Hill held the position. DUMBO’s success can be attributed to 15 of its 33 sales taking place at Olympia, a condo building that significantly influenced the median sale price, with condos at Olympia selling for a median price of $4.95 million. Red Hook returned to the rankings after a year, recording nine residential sales above the $2 million median price threshold. Its median sale price also increased by 30% on a quarter-over-quarter basis. Greenwood Heights, previously ranked #23, climbed to the 10th position this year, experiencing the fourth-highest increase in median sale price year-over-year in the third quarter among the top 50 neighborhoods.

The neighborhood also saw a 6% increase in sales activity. In addition to these three neighborhoods, nine more neighborhoods had medians above $1 million, including Cobble Hill and Gowanus, which ranked 11th and 12th, respectively. Both neighborhoods experienced declines in medians and sales activity. Cobble Hill recorded the second-largest decline in year-over-year sales activity, falling by 58%, while Gowanus saw a 35% decrease in sales compared to the previous year. The most significant increase in sales activity was recorded in Manhattan Beach, up 25% year-over-year. Despite the increase in the number of transactions, the median sale price in Manhattan Beach dropped by 5% from the third quarter of 2022 to the third quarter of 2023, standing just below $1 million. Queens saw the sharpest increase in median sale price, with Little Neck experiencing a remarkable 121% year-over-year surge in the third quarter. Little Neck’s median sale price rose from $370,000 in the third quarter of 2022 to $818,000 in the third quarter of 2023, securing its place among the top 50 priciest neighborhoods in NYC. This increase occurred despite a notable drop in sales activity. Among the 50 most expensive neighborhoods, Queens also recorded the most significant decline in sales activity, with Queensboro Hill seeing a 61% decrease in the number of transactions. The most expensive neighborhood in Queens was Hunters Point, with a median sale price of $1,205,000, which was a 14% increase compared to the previous year, although sales activity fell by 21%. Auburndale was the next-priciest neighborhood, with a median sale price of $958,000, marking a 9% year-over-year increase.

Source: Property Shark

The Renaissance of Isola: Milan’s Blend of Art and Life (Sources: Time Out and La Repubblica)

By Columbus International,7 November 2023

Milan once again proves itself as one of the trendiest cities in the world, and this time it’s the Isola neighborhood that shines in the spotlight. The annual Time Out ranking, published by La Repubblica, lists the most fashionable urban areas worldwide, and the Italian city makes its appearance among the top ten.

The surprise is significant, considering that the top ten of this list is generally dominated by well-known tourist destinations like Paris, Barcelona, Lisbon, and Zurich. Isola, located in the heart of Milan, has long been considered an isolated neighborhood, quite literally cut off from the rest of the city by the railway line that runs alongside it. However, in recent years, the district has undergone an extraordinary transformation through redevelopment projects initiated after Expo 2015. Today, Isola has been recognized by Time Out as one of the coolest neighborhoods in Milan.

The neighborhood is characterized by colorful houses, artist studios, and authentic local spots. While maintaining its original spirit, Isola has managed to balance it with a lively atmosphere, featuring street art, shops run by young entrepreneurs, independent galleries, and numerous trendy bars. Time Out notes that before Expo 2015, many people would never have considered visiting this neighborhood, but now Isola proudly claims the title of the trendiest neighborhood in Milan. This recognition demonstrates that it’s not always necessary to head to the most famous neighborhoods to discover the authentic soul of a city. Areas like Isola, which have transformed from neglected industrial areas into vibrant cultural and artistic centers, attract young people, students, and families seeking a genuine community, social initiatives, and a superior street life quality. The Time Out ranking takes these factors into account, highlighting places loved by local residents. Isola in Milan is just one example of how lesser-known neighborhoods can emerge as trendy destinations. This assertion shows that beauty and style can be found anywhere, making the urban world an increasingly fascinating and full of surprises place.

Jeff Bezos’ bold move: Miami beckons as he leaves Seattle behind (Source: People)

By Columbus International,3 November 2023

The Amazon Titan, Jeff Bezos, is trading the rain-soaked Pacific Northwest for the sun-drenched allure of Miami’s real estate scene. The 59-year-old tech mogul made a splash on Instagram when he unveiled his plans to relocate to Miami in the near future. In his social media announcement, Bezos shared a nostalgic clip from the early days of Amazon, reflecting on his roots in Seattle. “Seattle has been my home since 1994 when I started Amazon out of my garage,” he fondly reminisced. Notably, Bezos revealed that his father, Miguel Bezos, played the role of the cameraman in the video, adding a personal touch to the post.

“My parents [Miguel and Jacklyn] have always been my biggest supporters. They recently moved back to Miami, the place we lived when I was younger (Miami Palmetto High class of ’82 — GO Panthers!).” Bezos went on to explain the driving force behind his upcoming relocation, stating, “I want to be close to my parents, and [fiancée] Lauren and I love Miami.” He also highlighted the shifting focus of his aerospace company, Blue Origin, towards Florida’s Cape Canaveral. While expressing his deep attachment to Seattle, Bezos acknowledged the bittersweet emotions surrounding the move. “As exciting as the move is, it’s an emotional decision for me. Seattle, you will always have a piece of my heart.” In the video clip from 1994, a young Bezos guided a tour of Amazon’s early headquarters in his three-bedroom Seattle home. The scene showcased a cluttered yet promising office space filled with papers, books, fax machines, and dated computers. Bezos humorously quipped, “That’s about it. It doesn’t take long to tour the offices of Amazon.com.”

This monumental decision to relocate follows Bezos’ recent acquisition of a luxurious seven-bedroom mansion on a private island in Miami’s Biscayne Bay. The opulent property, nestled on a man-made island, was secured in September for an impressive $79 million, according to Bloomberg. This purchase came on the heels of Bezos’ earlier acquisition of a neighboring home in June, which he acquired for $68 million.

Together, these two properties span approximately 1.8 acres on the exclusive Florida island, marking a significant footprint in Miami’s real estate landscape. Before embarking on this real estate adventure, Bezos took another significant step in his personal life when he proposed to his girlfriend, Lauren Sánchez, in late May. Friends close to the couple expressed their excitement, describing it as “her dream come true.” Bezos and Sánchez made their relationship public in 2019, following Bezos’ divorce from his wife of 25 years, MacKenzie. Miami is now poised to be the backdrop for the next chapter in Bezos’ extraordinary journey.

Source: People

Milan’s Shifting Real Estate Landscape: Metro Influence and Emerging Investment Opportunities

By Columbus International,2 November 2023

The real estate market in Milan is constantly evolving, thanks in part to the development of local infrastructure, particularly the metro network, which has become an essential mode of transportation for many residents. The proximity to a metro station has a significant impact on housing prices, but this also depends on the type of property, whether it’s new or used, renovated or in need of renovation.

In a recent market analysis conducted by Abitare Co., a significant difference in price increases has emerged over the last 5 years between used and fixer-upper homes and those that are new or completely renovated. This difference is particularly noticeable when homes are located near one of Milan’s 5 metro lines: the Red, Yellow, Green, Lilac, and even the Blue line, which is still under construction. Examining different metro stops reveals substantial price differences in certain lines. For instance, on the Red line, the highest price per square meter is found in the areas of Molino Dorino and San Leonardo, with prices around 2,500 euros, whereas in the Duomo, Conciliazione, and San Babila areas, prices exceed 10,000 euros per square meter, reaching as high as 15,500 euros around Duomo. Generally, prices on the Red line are not considered affordable, with eight stops surpassing 10,000 euros per square meter. Additionally, prices increase significantly in the areas north of Loreto and Sesto San Giovanni, with over 40% increases near Porta Venezia. Prices in the Duomo area are incomparable to those on the Yellow line, where, for example, Montenapoleone reaches 19,000 euros per square meter, with a 43.2% increase. Affordable housing can be found in areas like Porto di Mare (2,900 euros), Comasina (2,950 euros), and Affori FN (3,100 euros). A similar trend is observed on the Green line, with areas like Cascina Gobba and Crescenzago having prices around 3,300 euros per square meter, and areas like Moscova and Garibaldi experiencing increases of 44.6% and 36.9% due to the redevelopment of Porta Nuova. Stops between Porta Genova and Piazza Abbiategrasso have an average price slightly below 5,000 euros. On the Blue line, prices in the San Cristoforo area recently reached 5,200 euros per square meter, reflecting a more than 40% increase due to high-quality residential projects such as Bosco Navigli. For more affordable prices, one can consider areas like Gelsomini and Segneri, offering properties for less than 4,000 euros per square meter. Conversely, high-profile areas linked to the Blue line, like Sforza Policlinico (10,600 euros) and Santa Sofia (10,500 euros), require an investment nearly three times as high.

For more budget-friendly options, living near the Lilac line in the Bicocca area, where the average price hovers around 3,900 euros per square meter, with a 35.4% increase, is an option, although still a fraction of the prices in the City Life – Tre Torri area (12,300 euros). The Milanese metro network is set to expand further in the coming years, with urban regeneration projects planned for stops such as Isola and San Siro. The latter could become particularly strategic in light of the potential construction of two new stadiums in the Milan hinterland, like Rozzano and San Donato, though they are still in the planning and approval phases. These developments could inevitably increase the value of surrounding properties, a common occurrence in cities with national stadiums. Furthermore, the expansion of the metro network, including the possible addition of the M6 in Milan, covering Municipality 5, which currently has limited metro service, could bring significant benefits to properties in the area. The presence of prominent universities nearby could ensure a steady influx of students, making real estate investments such as buy-to-rent and build-to-rent very promising. Of course, these benefits will be fully realized once the ongoing construction work is completed.

Via Wall Street Italia

South Florida’s Real Estate Boom: A Magnet for Investment and Migration

By Columbus International,1 November 2023

We are witnessing a real estate boom in South Florida. In the heart of Miami, spaces are being cleared for the construction of the tallest office tower in Florida, with 1.5 million square meters set to house companies that previously had no presence in the state. St. Regis and Waldorf-Astoria branded condominium towers are also in the works. Even though their completion is still a way off, many of the yet-to-be-built units have already been reserved with substantial deposits from buyers.

A similar situation is occurring further north in West Palm Beach, where the arrival of financial giants like Goldman Sachs and Blackrock has driven office lease rates to record levels in the second quarter of this year. Now, new workplaces with private terraces and yacht rental access are rising along the city’s waterfront, while developers plan condominiums for future employees. “We have four or five thousand people coming to West Palm Beach who aren’t here yet,” said Nick Bienstock, CEO of New York City office landlord Savanna. Eager to play its part in this market, Savanna is making its first investment in Florida, a 275-unit condominium called Olara, part of the 3,000 new homes currently in development throughout West Palm Beach. Over three years since the start of a massive migration of money and people to the Sunshine State, Florida’s real estate market continues to outperform nearly all others in the United States. What began as a refuge from cold weather and pandemic restrictions has transformed into a place that not only welcomes the current influx of professionals but also aims to double the number of future arrivals.

“The old Florida of the 1980s is disappearing,” said Ken H. Johnson, a real estate economist at the Florida Atlantic University College of Business. “We are no longer receiving those retirees with fixed income who used to come. We are getting people with significant incomes, and they usually bring work and employment with them.” In fact, according to a recent report by financial consultant SmartAsset, Florida is the number one destination for professionals aged 25 to 36 earning at least $200,000. But the most crucial data is that in recent years, high incomes coming to Florida outnumber those leaving by a three-to-one margin. Along with the young and jobs, newcomers also bring liquidity, buying homes in a state that has far too few. The result is a market that continues to excel on nearly every superlative list. For example, out of the ten most overvalued real estate markets in the country, seven are in Florida, according to a monthly analysis co-published by Professor Johnson. This means that Florida buyers are paying the highest premiums for their homes nationally compared to price averages over the last 27 years.

The median home price in Miami rose by 14.6% in August compared to the previous year, according to the brokerage Redfin, and by 5.3% in nearby Fort Lauderdale, where the downtown population has increased by 80% since 2010. These peaks come just as other “boom cities” of the pandemic era experience continuous declines: home prices in Phoenix fell by 2% in August, Fort Worth dropped by 2.7%, and Austin, which ranked last on Redfin’s price growth list, fell by 7%. And this is the good news: these numbers follow double-digit corrections in Phoenix and Austin just a few months earlier. “Texas is different from Florida even though both are identified as states without income taxes,” said Eli Beracha, director of the Hollo School of Real Estate at Florida International University.

“Florida is seen as a tropical vacation destination – where you can also live. People don’t vacation in Dallas.” During the pandemic, Florida recorded the largest wealth migration flow in the United States. In 2021 alone, new arrivals increased the state’s taxable income by $39.3 billion, more than triple what Texas, the second-place state, did, according to the Economic Innovation Group, a Washington, D.C.-based think tank. Census data released in September suggests that this growth will continue: Florida’s population increased by 2.13% – the largest jump in the U.S. – between 2021 and 2022. “Florida is undergoing a reset and restructuring in a way that no one else is doing,” said Jonathan Miller, president of real estate appraisal company Miller Samuel. What sets this current cycle apart is “that all of this is happening without a huge amount of international demand” that fueled Florida’s previous real estate and demographic booms. So, what’s fueling it now?

“New Yorkers are the new foreign buyers,” Miller said, referring to the nearly 130,000 Empire State residents who moved to the Sunshine State in 2021 and 2022 alone. Many of these new residents split their time between cities, making Florida their primary residence, free from income taxes. Not surprisingly, there is a boom in furnished condominium construction in Miami designed for easy renting while owners are away. Florida has an obvious appeal for northerners. Tired of the issues of large cities such as crime and quality of life shortcomings, and drawn to the tax benefits and beachfront home offices, the state offers a ready-made solution to many of America’s urban problems.

“It’s just a different way people choose to live, and Miami is a big beneficiary of that,” said Nitin Motwani, managing partner of Miami Worldcenter Associates, the master developer of the 27-acre, $6 billion Miami Worldcenter district spanning 10 blocks of the city. Motwani has revealed that he regularly receives calls from executives seeking logistical assistance in relocating south. “Sometimes it’s just things like ‘Where should we look?’ Other times, it’s about discussing talent or ‘Can you put me in touch with another high-level person who has relocated?'” he said. According to news reports this year, the top schools in the Miami area have become so crowded that billionaire newcomers are literally writing million-dollar “charity” checks to secure spots for their children. From every perspective, Florida’s real estate market is exceeding expectations. While this may be good news for investors, the lack of affordable properties has become a concern for “policy makers” who are seeking to incentivize the development of more affordable apartments. A recent report by the Florida Policy Project revealed that over a million residents across the state spend over 50% of their income on housing. Rising homeowners insurance premiums only make matters worse.

According to a recent study by the Florida Apartment Association, Florida will need approximately 500,000 new housing units by 2030 to contain costs and meet future demand. Not surprisingly, Florida’s housing shortage has translated into some of the highest price increases in the nation. Since 2019, the median price of homes and condos in Miami has risen by 64%, according to Miller Samuel. This is compared to a 14% increase in Los Angeles and a 1.2% decrease in Manhattan during the same period. Even outside of Miami, price gains have been robust, with a 62% increase in Boca Raton and a 59% increase in Delray Beach. In the Palm Beach area, rich in finance, residential property has been fueled by the pandemic, with a 141% increase since the second quarter of 2019, according to Miller Samuel. While prices are beginning to stabilize, at least five homes for over $50 million have already been sold this year, including a $155 million complex sold by the widow of Rush Limbaugh. “Forty years ago, Palm Beach was a place where elderly people went for their final years, and today it absolutely isn’t anymore,” said Bienstock of Savanna.

Similar to residential developers, commercial real estate investors are contributing to the continued dominance of South Florida’s real estate, investing over $63 billion in the region’s three counties in 2021 and 2022, according to MSCI Real Assets data. In Miami, New York companies Related Cos and Swire Properties are making a high-profile bet that both human and economic capital migrations to Miami are both permanent and ongoing. They are currently constructing One Brickell City Centre, the tallest office tower in Florida, with 1.5 million square feet and a height of 1,000 feet, in downtown. Developments like One Brickell are crucial for Miami’s continued growth. Corporate relocations increased by 33% last year, while the total assets managed by financial firms in Miami rose to $390 billion in August 2022, up from $75 billion in 2019, according to the Miami Downtown Development Authority.

“The lack is represented by quality office spaces, and that’s the gap we’re trying to fill,” noted David Martin, senior vice president for retail and commercial leasing of Swire’s U.S. operation. In fact, office vacancies stood at just 10.4% in the second quarter of this year in Miami-Dade County, according to Colliers, compared to the historical high of 17.8% in Manhattan and over 30% in San Francisco. Additionally, the city center is now more easily accessible to Boca Raton and Palm Beach thanks to the new $6.2 billion Brightline high-speed rail service. Several other New York developers – from real estate titan Harry Macklowe (who once owned the GM Building), to Chrysler Building owner Aby Rosen, to the Upper East Side condo kings of the Naftali Group – are all planning their debuts in Florida. “There is still a migration of people,” says billionaire developer Richard LeFrak, who has more than doubled his South Florida staff since the pandemic hit. “It’s not as dramatic as it was during COVID, but it’s still a steady flow.”

Source: New York Post

The Uncertainty of the Real Estate Market in Italy: A Challenge in a Complex Financial Environment (Source: Monitor Immobiliare)

By Columbus International,31 October 2023

The real estate scenario in 2023, let’s admit it, is not the rosiest one. Mortgage rates are on the rise, short-term rental taxes have been “adjusted” upward, inflation is affecting entire households, and there is a looming specter called “recession.”

The sector that had resiliently weathered the pandemic crisis is now confronted with an unreachable cost of living. Indeed, the Italian real estate sector is grappling with a set of significant challenges in the first nine months of 2023. Key factors driving this situation also include difficult access to credit, increased financing costs, and competition with government bonds. These factors have had a notable impact on the contraction of the real estate investment market, as highlighted by the Real Estate Price Index (Ipi).

Despite an improvement in the macroeconomic context, the data presented in the recent Ipi report reveals a drastic decline in the real estate market, with a 65% contraction compared to the same period in 2022 and a 67% decrease compared to the five-year average. This translates to a total of only 3.16 billion euros in investments. In the third quarter, real estate transactions reached only 1.072 billion euros, in line with what was observed in the first two quarters of the year. When we delve into specific sectors, the Logistics sector emerges as the most resilient, with a total of almost 500 million euros in investments, representing over 46% of the total investments. Investments are primarily concentrated in Northern Italy.

Furthermore, there is a general increase in prime rates and net yields, remaining above 5.25%, showing a 25-basis point increase compared to the first half of the year. In the Living sector, promising results are recorded, with investment volumes in the quarter amounting to 165 million euros, making up 15% of the total for the period and a total of 455 million euros since the beginning of the year. During this quarter, 84% of investments were concentrated in Milan, mainly in residential development and urban revitalization projects, predominantly associated with the “Build to Rent” concept.

The Leisure market has been driven by a significant resurgence in tourist flows and has recorded investment volumes of approximately 107 million euros in the quarter, bringing the total for the year to 387 million euros. The most significant operations have been concentrated in the main tourist destinations in Central Italy. The Office asset class, despite registering transactions totaling 105 million euros in the quarter and 552 million euros since the beginning of 2023, reflects the cautious attitude of investors toward this segment. Milan and Rome represented 79 and 21 million euros of these transactions in the period, while other regional cities, such as Naples, continue to demonstrate good performance.

In the Retail sector, investments amounted to about 94 million euros in the quarter, bringing the total for the first three quarters to 345 million euros. This represents growth compared to the same period in 2022, thanks to various transactions related to shopping centers in regional markets. The remaining investments, around 100 million euros, were distributed among mixed-use properties, the Healthcare sector, and some smaller operations in the Alternative sector, with particular attention to telecommunication infrastructure.

In summary, the Italian real estate sector is navigating a complex financial environment, but it still presents promising opportunities in specific segments, such as logistics, residential, and tourism. Investors remain cautious, but the market shows signs of resilience and adaptation to current challenges.

Real Estate Market Downturn: Notarial Data Confirms Declining Trend

By Columbus International,25 October 2023

New notarial data confirms a marked decrease in sales in the real estate market. According to the semi-annual Observatory of the National Council of Notaries, in the period from January to June, property transactions fell by 8.7%, while mortgages experienced a decline of 29.3% compared to the same period in the previous year. Although there are methodological differences with the data released by the Revenue Agency, the overall trend of market reduction is undeniable.

The Notarial Observatory points out that the decrease in purchases primarily concerns first homes. This aligns with the fact that non-facilitated properties, often destined for non-residential uses, tend to be paid for in cash, especially in a context of rising mortgage rates. Currently, many Italian families have liquidity, as evidenced by deposits in current accounts amounting to 1,764 billion euros in the previous September. However, economic uncertainty and the expectation of potential price declines may be among the reasons holding back purchases.

Analyzing the data in detail, it emerges that the decrease in transactions was progressive over the semester: -2.7% in the first two months, -4.8% in the first quarter, and -1% in the second quarter of 2023. Transactions of first homes between private parties experienced a reduction of 11%, while those from companies registered a decline of 34.2%. Regarding mortgages, the 29.5% decrease resulted from declines in both the first and second quarters of 2023. In terms of disbursed capital, it went from 38.5 to 26.9 billion euros. 38.6% of mortgages were granted to buyers in the 18-35 age group, benefiting from incentives for young buyers. Future prospects indicate a further decline, with forecasts of -10.5% for transactions and -23.8% for mortgages throughout 2023.

However, these projections may turn out to be optimistic, considering unexpected developments like the further increase in interest rates decided by the ECB. Finally, interest rates on loans for home purchases, including ancillary costs, increased in August, rising from 4.58% in July to 4.67%. Overall, the Italian real estate market is undergoing a phase of significant contraction, influenced by various economic and financial factors.

La Lombardia è la regione con più transazioni in Italia

Patrizia Reggiani, New Owner for the “Gothic” Villa. Sold for 9.5 Million Euros (Source: Il Giorno)

By Columbus International,23 October 2023

At the intersection of Via Andreani and Via della Guastalla, facing the homonymous gardens, stands the renowned “Gothic” villa, known for having belonged to Patrizia Reggiani, ex-wife and mastermind behind the murder of designer Maurizio Gucci. According to Il Giorno, the property at number 5 Via Andreani has been sold for nine and a half million euros to a couple, with him being British and her Austrian, residing in the Comasco region.

The internal renovation of the house, featuring a basement, ground floor, and two elevated floors, has been entrusted to a construction company based in Parre, in the province of Bergamo. The villa witnessed the return of Reggiani, now seventy-four, on September 16, 2013, after the supervisory court decided to suspend her 26-year sentence. She had been convicted as the instigator of her ex-husband’s murder, who was shot three times by a hitman on Via Palestro on March 27, 1995. After her release from San Vittore prison, Reggiani took care of her mother Silvana Barbieri, along with the housekeeper and the Ceylonese servant who were guests in the villa. It was actually Reggiani’s mother who acquired the shares of the company that owned the property in Guastalla back in 2004.

According to Il Giorno, Reggiani currently resides in an apartment near San Babila, not far from the penthouse where she had lived with Gucci for a period of time. The house near the Duomo that once hosted them was sold in 2022 for twenty million euros to entrepreneur Risha Suah, an Indian and the owner of Jekson Vision, a company specializing in pharmaceutical packaging with various locations worldwide, including India, USA, Russia, Malta, Germany, and the United Kingdom.