Miami’s real estate sales boom exhausts superlatives

Even in an industry where superlatives abound, the new report of the Miami Association of Realtors sets a superheated pace: most annual home sales, most condo sales, most single-family sales, nine of the top ten months of all time – and that’s just for starters.

Single-family luxury home transactions up 28.2% year over year, inventory of single-family homes shriveled 27.9% year over year in the buying frenzy, total active listings down 43.6% as sales soared, single-family median buying prices up 11.7% and condo median prices up 28.1%. All those trends led to a 14.9% November rise in single-family sale dollar volume and a whopping condo dollar volume that very nearly doubled year over year. Total November residential resales: $2.2 billion, which doesn’t include new condo and house sales.

“The demand for Miami real estate is so high that not even November, a time usually known for a slower pace of deals because of the holidays, can slow down this historic market,” said Jennifer Wollmann, Miami Association of Realtors board chairman, who works with Berkshire Hathaway HomeServices EWM Realty.

“Domestic buyers from high-tax, high-density states have migrated here as the availability of remote work has expanded exponentially with the pandemic,” Ms. Wollmann said, noting that vaccinated global buyers were only allowed back into the US on Nov. 8.

Those global buyers contribute disproportionately to cash sales, which in November accounted for 46.9% of all Miami existing condo sales and 24.9% of single-family sales. About 24% of all US home sales are in cash.

In November alone, Miami existing condo sales rose 42%, from 1,305 to 1,853. Single-family transactions gained a bare 1.2%, to 1,168.
The push into Miami from out of state has left only a 3.6-month supply of $1 million-plus single-family homes on sale and an 8.4-month supply of $1 million-plus condos.

Tonino Lamborghini is making another push into Dubai's property market - this time he plans to make it a success

Tonino is scouting for partners and he also intends to bring in $500m of his own

Dubai: Tonino Lamborghini will not be denied.

If his first attempt at creating ‘Lamborghini’ branded residences in Dubai ended in failure, this time he wants to get everything done right. Tonino’s plan is to find the right investor-partner into building a residential project in Dubai, a niche hospitality project in Abu Dhabi, and if all goes well, a museum that will bear the name of his legendary father, Ferruccio, who launched the storied Lamborghini automotive brand. (The Italian supercar carmaker is now part of Germany’s Volkswagen Group.)

“My first attempt in Dubai was back in 2018 with a developer from China, but that did not go according to plan and the project was scrapped,” said Tonino, who is in Dubai to explore the new joint development possibilities. “This time, I am talking to some interested parties about creating something that bears the full Lamborghini stamp.

“From my side, I plan to invest anywhere up to $500 million to make it work and I am in close contact with renowned architect Shaun Killa to bring the best of concepts.” (Shaun Killa was the creative mind behind the Museum of the Future.)

Keeping a distance

Tonino keeps his distance from the automotive company that launched his family name to stellar heights. That, however, doesn’t mean he is completely off anything to do with the concept of rides. He has a company that makes electric cars for city rides as well as electric scooters.

Real estate is what fascinates Tonino, and which he has given shape to in Italy. There is also the furniture making and other lines that stick close to the real estate side of his business. “I am here to try and introduce a new concept of residential or commercial real estate, one which gives a lot of attention to green,” he said. “Sure, there are lots and lots of buildings in Dubai and Abu Dhabi that are conceptually nice, but don’t have green areas. “In Italy, we have vertical gardens and this market is ready for more of those kind of concepts.”

A different sort of museum

He may be keeping an eye out for residential or hospitality ventures, but Tonino will not be deterred from pursuing the museum ambitions. “It needn’t be about art – the way I see it the museum should be futuristic,” he added. “The way I envision it, the museum will be dedicated to holographic events, a big venue that could hold virtual fashion shows, concerts, and anything of that nature.”

Such a museum has already opened in Italy, also bearing the father’s name. For Tonino, it’s much more than paying tribute to the patriarch.

Dubai records more than $690m in property transactions on first working Friday

The value of real estate transactions in Dubai on the first working Friday following the adoption of the new weekly work system in the UAE topped Dh2.53 billion ($690 million), with 227 real estate transactions, Dubai Media Office said.

The total value of real estate transactions recorded in the first week of the year surpassed Dh7.24bn, with 1,766 transactions.

Data from the Dubai Land Department showed that the first working Friday included 173 sales transactions worth Dh2.38bn — 12 of which were land plots worth Dh451.16m and 161 were apartments and villas Dh1.93bn, the media office said in a statement on Friday.

The UAE government announced the shift to a Monday-to-Friday work week on December 7, in which public sector workers at the ministerial level will adopt a four-and-a-half-day working week, with Friday being a half day.

Private companies are free to decide whether they will adopt the new work week, but many businesses have already committed to the switch.

The property market in the UAE, the second-biggest Arab economy, has made a strong recovery from the pandemic-driven slowdown as the country’s economy improves on the back of fiscal and monetary measures.

Pent-up demand and improved investor sentiment have also helped to drive property sales, particularly in Dubai and Abu Dhabi, amid the pickup in economic activity.

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Last year, there were 84,772 property transactions worth a total of Dh300bn in Dubai, the emirate's land department reported.

The top three areas that recorded the highest value of land sales transactions on Friday were Marsa Dubai, with land sales worth Dh369m; Al Thanya Fifth, where a plot of land was sold for Dh28m; and The Palm Jumeirah, where a plot of land went for Dh17m.

Dubai’s Jebel Ali First area recorded the highest number of transactions on Friday, with three sales transactions worth Dh6m. It was followed by The Palm Jumeirah, with a Dh17m sales transaction, and Warsan First, with Dh4m sales transaction.

The three highest-valued sales transactions featuring transfers of apartments and villas included a Dh500m sales transaction in The Palm Jumeirah, followed by a Dh495m sales transaction in Marsa Dubai and a Dh402m sales deal, also in Marsa Dubai.

Jebel Ali First recorded the most villa and apartment sales transactions on Friday, with 23 sales transactions worth Dh18m. Business Bay and Al Barsha South Fourth recorded 21 sales transactions (Dh25m) and 13 sales transactions (Dh16m), respectively.

The total value of mortgage transactions concluded on Friday was Dh125.03m, the media office statement said. The biggest mortgage transaction was registered in Al Thanyah Fourth, featuring a value of Dh37m, followed by Nad Al Sheba Third (Dh11m).

Five properties worth Dh19.16m were granted to immediate family members. Among these, the highest value of Dh12m was registered in Al Merkadh.