Limited Real Estate Inventory and High-End Living make Key Biscayne Homes a Hot Commodity
Key Biscayne is arguably one of Miami’s most exclusive places to live. Located on a 12 mile long island off Brickell and Coconut Grove, Key Biscayne offers the ultimate waterfront living. The Key Biscayne waterfront homes, the high ranking public school, living next to a National Park and the general exclusivity of this island are just a few factors that define why Key Biscayne homes are in high demand among wealthy families. What makes it even more unique is the lack of land availability and the limitations put on construction on the island due the preservation of the park areas. This has meant that the supply curve shifts very little, sheltering this neighborhood from any over abundance of construction.
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Single Family Market
The Key Biscayne house market sells at $748 per sq.ft. for non waterfront property and $1,688 for waterfront property. The value for single family rose a staggering 32% for waterfront homes from 2013 to 2014 and 21% for non waterfront and with a stable 11 months supply of inventory we expect this market to continue to rise through 2015.
The exclusive and often waterfront homes attract the world’s wealthiest families and real estate investors, often looking for a solid place to raise their family. For families the most attractive aspects are the island’s safety (police control and gated entry), the presence of one of the best public schools in the USA, and the high-end quality of life and social scene. Other advantages are the great beaches, national parks and golf courses as well as the proximity to the Financial District in Brickell, Coconut Grove and even Miami Beach.
The Island is also a favorite with boaters because of the proximity to the open water. Unlike other areas there are no fixed bridges in Key Biscayne and almost all waterfront mansions offer an immediate or fast access to the open waters.
Home to many multi-million dollar mansions, the prices of Key Biscayne are increasing steadily. The least expensive home that was sold in the last year was sold for $1.6M (with $100K over asking price).
Key Biscayne Homes Are Attractive to Investors
Real Estate Investors are mostly attracted by the exclusivity of the island. The high demand for Key Biscayne living cannot be answered by the limited supply. The Island only offers a selective amount of homes (especially waterfront homes) and unlike other Miami areas where home flipping is quite common, Key Biscayne is known for its steadiness and low turnover of home owners. The limited amount of inventory and low turnover rates combined with a high demand makes the prices increase year after year.