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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.

Exploring the $9.4 Million New York Residence in Proximity to Carrie Bradshaw’s Iconic Fictional Apartment

By Columbus International,18 October 2023

New York’s West Village is famed for its assortment of iconic fictional properties, such as the Friends’ apartment and Carrie Bradshaw‘s residence from Sex and the City. Presently, you have the opportunity to possess a residence in close proximity to some of the city’s most renowned TV dwellings with this $9.4 million abode at 70 Perry Street—a mere stone’s throw from Bradshaw’s TV abode. This spectacular property was once the abode, individually, of three celebrities and prominent figures: renowned chef and restaurateur Jeffrey Zakarian, comedian Louis C.K., and the esteemed Associated Press reporter and editor Charlie Grumich.

All, at one juncture, were occupants within the edifice. It also served as the backdrop for The Back-Up Plan featuring Jennifer Lopez and The Brothers McMullen starring Edward Burns. This townhouse, measuring 20 feet in width, is a multi-family building encompassing four units and was constructed in 1867 by Walter Jones, who fashioned the structure in the French Second Empire style. This style is distinguished by ornamental elements, such as the mansard roofs adorning this edifice, along with iron frameworks and glass skylights. The four units are interlinked by means of a centralized staircase, and the owner’s unit, comprised of seven rooms, occupies the initial two floors of the building. The owner’s unit incorporates one bedroom, two bathrooms, a parlor adorned with ornate ceilings and a library, a living room, a formal dining room, a spacious kitchen, and a garden. The kitchen, designed in a country-style, offers an expanse with one of four fireplaces and opens up to the landscaped garden—a verdant oasis in the heart of the city. There’s a paver patio, a stone brick wall, latticework, and ample space for outdoor furnishings. The parlor room showcases exquisite molding, with ornamental 12-foot ceilings and pocket doors that lead to the library, affording views over the charming, tree-lined Perry Street.

The owner’s unit additionally features an office/study, a laundry area, and an expansive pantry. The entire building uniquely accommodates three distinct one-bedroom apartments, each equipped with kitchens, a living area, a dining space, in-unit laundry facilities, and an office. Alternatively, the building can be transformed into a unified family residence, rendering it a multi-bedroom private townhome. There are a total of four fireplaces, and each room exudes the quintessential charm of pre-war New York City.

This townhouse, designated as a landmark within the Historic District, has been affectionately preserved and boasts lofty ceilings, broad-plank floors, and expansive windows that flood sections of the residence with natural illumination. This marks the first instance in 45 years that the townhouse has been placed on the market. It is positioned in one of the most sought-after neighborhoods in New York, with picturesque, leafy avenues: West Village is renowned for its enchanting streets, upscale dining establishments, luxury boutiques, and quaint cafes. Bradshaw’s fictitious apartment is situated at 66 Perry Street, merely a stone’s throw away, and the exterior was utilized for filming scenes outside the residence—even though Bradshaw purportedly resided on the Upper East Side in the series. West Village is distinguished for its opulent real estate offerings, celebrity inhabitants, and artistic legacy.

Source: Forbes

U.S. Housing Market Defies Odds: Rising Home Prices Persist Amid Economic Uncertainties

By Columbus International,17 October 2023

In recent months, the U.S. economy has stood at a crossroads, teetering between the specter of recession and the persistent challenge of soaring inflation. Amidst these financial uncertainties, a surprising resilience characterizes the housing market, where demand remains robust, and home prices continue to ascend.

Resilience in Housing Market Despite Economic Divides
Efforts by the Federal Reserve to curb inflation have led to significantly higher borrowing costs, marked by a 22-year high in mortgage rates. Despite these elevated rates, the housing market has defied projections of a decline. Goldman Sachs, in a notable revision, now forecasts a 1.8 percent increase in average home closing prices by year-end, a significant shift from their prior estimate of a 2.2 percent decline. This resilience can be attributed to the relentless demand for housing and a limited supply in the market. Strong demand, driven by a variety of factors including demographic trends and a growing population, coupled with constrained housing inventory, has fueled consistent price hikes. The situation is reflected in the recent revision of Goldman Sachs’ home-price forecast, indicating that the market remains on an upward trajectory despite the prevailing economic uncertainties.

Commercial Real Estate Faces Challenges
In contrast to the housing market’s buoyancy, the commercial real estate sector grapples with multiple challenges. The lingering effects of the pandemic, such as rising office vacancies, combined with the Federal Reserve’s efforts to control inflation through interest rate hikes, are impacting this sector. Higher interest rates are particularly concerning, leading to anticipated commercial mortgage renegotiations in the next few years. Regional banks are notably vulnerable in this scenario, exposing potential risks in the commercial real estate sector. The divergent fates of the housing and commercial real estate markets underscore the specific dynamics at play in each sector. The housing market’s resilience is attributed to its strong fundamentals and the essential need for shelter, while the commercial real estate market faces complexities due to evolving work trends and economic policies.

Yield Surge Raises Economic Eyebrows
The surge in the 10-year U.S. Treasury note yield to a 15-year high at 4.258% raises concerns about the potential economic impact. Higher yields could lead to increased borrowing costs, affecting various markets, including stocks, bonds, and housing. Of particular concern is the potential impact on mortgage rates, which could pose challenges for both prospective homebuyers and those seeking to refinance. The housing market, though displaying remarkable resilience, is not entirely immune to these economic shifts. An increase in mortgage rates could alter the affordability dynamics, potentially slowing down the rapid pace of home price increases. Investors and industry stakeholders closely watch for cues on how these yields might stabilize and their subsequent influence on the housing market.

Federal Reserve Balancing Act
The Federal Reserve’s cautious approach, as reflected in the minutes of their July 2023 meeting, showcases the delicate balance they strive to maintain. Controlling inflation remains a priority, and this is evident in the interest rate hikes implemented to slow the economy and curb rising prices. However, the Fed grapples with the need to carefully weigh these actions against their potential negative impacts on the economy, such as slowing hiring and increased business loan costs. The central bank’s actions are being closely scrutinized by various sectors, including the housing market. Their decisions significantly impact borrowing costs and, subsequently, housing affordability. Striking the right balance is crucial for the Fed to navigate the complex economic landscape and support the stability of both the housing market and the broader economy.

Housing Market Defies Mortgage Rate Surge
The surprising resilience of the U.S. housing market in the face of soaring mortgage rates stands as a testament to its robustness. Despite rates doubling over the past year and a half, major homebuilders’ shares have rallied, surpassing broader stock indices. The constrained housing supply, coupled with higher mortgage rates, has essentially trapped existing homeowners in their properties, diminishing available housing stock and compelling potential buyers to explore new properties. This resilience is underpinned by the fundamental need for housing. Regardless of mortgage rate increases, the demand for homes remains high, particularly due to demographic trends and societal shifts. The housing market has adapted to the new normal of higher rates, showcasing its strength and stability amidst evolving economic conditions.

A Glimpse into the Future
While concerns about the U.S. housing market persist due to the rapid rise in mortgage rates and a sharp slowdown in home sales, economists and analysts foresee a moderate market correction, rather than a crash on the scale experienced during the Great Recession. Factors such as low inventories, cautious building practices, demographic trends, strict lending standards, and low foreclosure activity contribute to the market’s resilience. These indicators, combined with the enduring demand for housing, hint at a market that is likely to continue its upward trajectory in a more measured manner. The housing sector is expected to adapt and find equilibrium even in the face of economic uncertainties, reinforcing its position as a cornerstone of the American economy. The U.S. housing market remains a pillar of strength amid economic uncertainties, continuing to surprise pundits and analysts with its unwavering growth. As the economic landscape evolves, only time will reveal whether this resilience is a temporary phenomenon or a lasting testament to the fundamental stability of the housing sector in the United States.

The 11 best hotels in Miami to book now, according to Shelby Albo, founder of Travel Fit Love. Source: AD

By Columbus International,11 October 2023

Are you looking to book a stay at one of the finest hotels in Miami? Miami is anything but understated, with its showy, celebrity-filled restaurants and clubs that stay open into the early hours, beaches that serve as fashion runways, and soaring real estate prices. The city’s top hotels are no exception. Shelby Albo, a travel consultant and the founder of Travel Fit Love, a site that promotes active travel, says, “Miami’s hotels tend to be glamorous spots that are the ‘It’ places to hang out in town. In fact, people visit Miami just for the hotels.” Here’s Architectural Digest’s list of 11 exceptional properties in the Magic City, spanning from Surfside to South Beach, and not forgetting Mid-Beach in between.

The Goodtime Hotel: A collaboration between Miami nightlife and restaurant entrepreneur David Grutman and singer-songwriter Pharrell Williams, this hotel guarantees a good time. With trendy public spaces adorned with hand-painted murals and Deco plasterwork, and rooms featuring fun elements like leopard-print benches and pink rotary dial phones. The property boasts a 30,000-square-foot pool club called Strawberry Moon, a spacious gym, and a library for guests to socialize over coffee or cocktails.

W South Beach: After a $30 million renovation in 2020, W South Beach re-emerged as a serene getaway on Collins Avenue, shedding its dark tones and shiny finishes. The 357 guest rooms now feature an airy aesthetic with warm oaks and natural light. The hotel also offers new spa facilities and an art collection valued at $100 million, featuring 21 original Andy Warhols. On-site amenities include tennis and basketball courts, beach cabanas, and an outpost of the celebrity-favorite restaurant Mr. Chow.

The Setai, Miami Beach: With its sleek, dark tones and Asian-inspired design, The Setai oozes elegance. As a member of the Leading Hotels of the World, guests can sip fresh coconut juice by the three guest-only swimming pools or indulge in treatments at the Valmont spa. The signature restaurant, Jaya, serves up exceptional Asian cuisine, complete with fire dancers, aerial acrobats, and live jazz performances.

The Betsy, South Beach: This European-inspired, family-owned luxury boutique hotel on Ocean Drive offers a unique combination of an art gallery, live jazz club, and a coffee shop that hosts book talks and poetry readings. The hotel also features a beach-facing outdoor dining terrace and a rooftop pool with panoramic city views.

Faena Hotel Miami Beach: Located in Mid-Beach, Faena Hotel offers some of the widest and most pristine beachfront in Miami. It’s a maximalist’s dream, featuring pieces by renowned artists like Damien Hirst and Jeff Koons. Dining options include Los Fuegos by Francis Mallmann, known for Argentine fare from South America’s celebrated chef. The hotel also hosts live shows, has a bar, and a 22,000-square-foot oceanfront spa.

Four Seasons Hotel and Residences at The Surf Club, Surfside: Originally opened in 1930, the Surf Club has a rich history and a contemporary aesthetic today. Situated on nine oceanfront acres, it offers 77 rooms, three pools with day cabanas, a destination spa, a champagne bar, and an Italian restaurant. The Surf Club is also home to a restaurant by the acclaimed chef Thomas Keller.

The Miami Beach Edition: This luxurious hotel by Ian Schrager and Marriott offers sleek style and ocean views. The bungalow-style rooms come with floor-to-ceiling windows, high-end linens, and marble bathrooms with products by Le Labo. The hotel offers dining by Jean-Georges Vongerichten, wellness options, a beach club, and a mini nightclub with a bowling alley and skating rink.

SLS Brickell: Located on the mainland, SLS Brickell, designed by Philippe Starck, offers easy access to Downtown Miami, Wynwood’s street art, and hip restaurants. Guests can relax poolside, enjoy spa treatments, and savor wood-fired pizzas and Italian fare at Fi’lia.

Mr. C Coconut Grove: Situated in Coconut Grove, this hotel exudes luxe coastal vibes with lacquered wood paneling and a rooftop bar and restaurant, Bellini, serving authentic Italian dishes. Acqualina Resort & Residences on the Beach: If you seek tranquility, this resort, a 30-minute drive north of Miami Beach, is an ideal choice. Inspired by a Mediterranean villa, it features outdoor pools and a 20,000 square-foot spa, making wellness a priority.

Casa Tua: This chic private members club in Miami’s Art Deco District also offers five rooms for overnight stays. The property feels like a dear friend’s home with an eclectic decor sourced from around the world and a restaurant serving simple yet authentic Italian cuisine.

Crackdown on Airbnb Listings Creates “Black Market” for Short-Term Rentals in New York City (Source: WIRED)

By Columbus International,11 October 2023

New York City’s new law banning most short-term Airbnb rentals, which came into effect in early September, has had a significant impact on the market. As few as 2 percent of the city’s previous 22,000 short-term rentals have been registered with the city. Many illegal listings have moved to social media and lesser-known platforms, with some still appearing on Airbnb itself. The number of short-term Airbnb listings in the city has dropped by more than 80 percent, going from 22,434 in August to just 3,227 by October 1, as reported by Inside Airbnb, a watchdog group monitoring the platform. However, only 417 properties have been officially registered with the city, indicating that very few short-term rentals have received permission to continue operating. This crackdown has given rise to a “black market” for short-term rentals in the city, according to Lisa Grossman, a spokesperson for Restore Homeowner Autonomy and Rights (RHOAR), a local group that opposed the law. Grossman notes that since the ban, the short-term rental market has gained traction on platforms like Facebook. She says, “People are going underground.”

The short-term rental landscape in New York has dramatically shifted due to this law. Individuals are turning to platforms like Craigslist, Facebook, Houfy, and others, where they can search for guests or properties without the oversight of Airbnb-like booking platforms. The increase in demand for such rentals is expected to drive hotel prices higher. A search for short-term stays on Airbnb reveals a limited number of listings across the city. Many previous listings have transitioned into stays of 30 days or longer, thus avoiding the need for city registration. AirDNA, a short-term rental intelligence firm, found just 2,300 short-term Airbnb rentals in New York City by late September. AirDNA’s data shows that long-term rentals now make up 94 percent of Airbnb’s listings in the city, reflecting the stricter requirements for short-term rentals. Hosts must meet stringent criteria to be approved for short-term rentals, such as allowing only two guests and the host being present during the stay. However, some hosts are attempting to work around these rules. Many Airbnb listings include an option for hosts to enter a registration number or claim an exemption. Despite these efforts, some entire units still appear to be available for short stays and do not seem to qualify as hotels or exempt units.

Inside Airbnb’s data shows that approximately 2,300 short-term properties have labeled themselves as exempt from registration on Airbnb, with several more not specifying their status. Another 35,000 are designated as long-term rentals. These numbers were not confirmed by Airbnb. The Mayor’s Office of Special Enforcement in New York, responsible for the registration program, has not provided an update on the total number of registered short-term rentals or whether violations have been issued for illegal listings. The law in New York City is just one example of how cities are responding to the growth of short-term rentals. Supporters of the rule argue that it will free up apartments for local residents facing high rents and housing shortages. However, some, including small landlords, believe it will eliminate a flexible source of income without significantly addressing the housing crisis. Smaller landlords are lobbying New York City councilors to revise the rules to allow them to continue renting out their units. RHOAR represents hosts who own and occupy single-family homes or homes with two dwelling units. They argue that they have been unfairly grouped with larger landlords.

Grossman states that RHOAR has met with city councilors in an attempt to change the law to permit smaller hosts to legally offer short-term rentals. Beyond Airbnb, people are posting listings and seeking short-term rentals on Facebook groups. Craigslist advertisements for rentals include weekly or nightly prices. These off-platform rentals pose risks to both guests and hosts who may not have the protection of larger companies like Airbnb. As for Airbnb, it is turning its focus away from New York City, which was once its largest market. Airbnb CEO Brian Chesky has mentioned that the company is exploring longer rentals, as well as car rentals and dining pop-ups. The company is also looking to expand its presence in Paris, its largest market and the host of the 2024 Summer Olympics. “I was always hopeful that New York City would lead the way—that we would find a solution in New York, and people would say, ‘If they can make it in New York, they can make it anywhere,'” Chesky said in September. “I think, unfortunately, New York is no longer leading the way—it’s probably a cautionary tale.”

Source: WIRED

It’s a Good Time to Make a Deal in New York Real Estate, Forbes Reports

By Columbus International,11 October 2023

New York City’s real estate market has responded robustly to the economic uncertainties of the first half of 2023. Many potential buyers in our market initially postponed their plans following the 50 basis point increase in the Federal Reserve rate in December (which came after several 75 basis point increases). As mortgage rates continued to rise and the stock market declined, transaction volume, which had been steadily declining throughout the second half of 2022, remained sluggish in January.

Surprisingly, February saw a turnaround, and March brought further improvements. However, the successful deals were strongly linked to price reductions or setting highly realistic listing prices. There is no room for overly optimistic pricing in 2023. The high-end market (homes priced at $10 million and above) has borne the brunt of this correction year.

During the first two months of the year, few high-end listings found buyers, and the ones that did either possessed unique features or were fortunate to connect with that one buyer whose needs aligned perfectly with the property. Owners who purchased their properties since 2014 or 2015 have had to accept significant losses to make a sale. In the $4 million to $10 million market, the Olshan Luxury Market Report, which tracks contract activity at $4 million and above, saw a notable increase from just over 16 deals per week in January to an average of 25 deals per week in February, and nearly 32 deals per week for the first three weeks of March. Nevertheless, many luxury properties with seven, eight, or nine rooms can still linger on the market for extended periods, primarily due to pricing.

Since January, half of the emails received by New York agents have announced price reductions! Arguably, the most active market in the city is for lower-priced units, especially those priced at $2,500,000 and below. The rental market remains exceedingly strong, currently at its highest point in recent memory (though somewhat weaker than six months ago). Properties in the $2 million and below range tend to favor buying over renting, especially on an after-tax basis. Inventory remains limited at this level. Despite disruptions caused by the collapses of Silicon Valley Bank and Signature Bank, the New York market has experienced increased activity as spring approaches.

The Federal Reserve’s decision to raise its target rate by only 25 basis points, a repeat of its late January decision, suggests a halt to the more substantial increases that took the Fed rate from 0.25% to just under 5% within a year. Although the correlation between the Fed rate and mortgage rates is not perfect (mortgage rates are more influenced by the bond market), it’s clear that the considerable increase in the Fed rates has driven mortgage rates upward, impacting buyer confidence as monthly purchase costs rise.

Especially for younger buyers who’ve grown accustomed to the artificially low rates prevailing since the 2008 recession, a mortgage rate of 5% or 6% remains low by historical standards. The gradual acceptance of this reality by buyers has played a role in the real estate market’s gradual recovery. Several factors make it challenging to predict the second quarter accurately. The stability of regional banks remains uncertain, and the Credit Suisse merger with UBS signals that the banking crisis is not confined to the United States. Meanwhile, inventory remains tight in various segments of the New York market, and even cautious buyers often struggle to find suitable listings. Stock market volatility and inflation may continue, but the worst of the significant price declines seems to be behind us, and property costs have stabilized. Forbes reports that it’s an opportune time to strike a deal!

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