Miami among world's most expensives cities to live, work
Commercial and residential real estate remains costly
Miami ranked as the 11th most expensive city in the world to live and work, according to real estate researchers.
Living and working in Miami remains less costly than London, New York, Hong Kong, Paris, Tokyo, San Francisco, Lagos, Singapore, Dubai and Sydney. But it remains more expensive than Los Angeles, Moscow, Chicago and Shanghai.
"The productivity of cities and their value to global businesses clearly has a pronounced effect on demand and hence rental costs," said Yolande Barnes, the head of world research at Savills.
According to Savills, a global real estate provider, a quarter of the top 20 most expensive cities in the world are in the United States, where Miami is the third most expensive city -- after New York and San Francisco.
For the Savills' Live/Work index, researchers compared the total annual cost of renting homes and office space per person in cities around the globe.
Barnes said that to keep up with demand, cities must keep developing their supply of both office and residential real estate. Miami's international cash buyers of condos keep market prices high.
About 52 percent of last month's transactions in Miami were in cash and about 66 percent of the cash purchases were condos, according to Miami Realtors. Earlier this month, the Miami Association of Realtors reported the median sales price for condominiums increased 9.5 percent and existing single-family homes increased 6.4 percent in February.
To keep up with demand, the area east of Interstate 95 remains hot -- with 78 towers under construction and 59 planned -- according to the most recent New Construction Market Status Report. Luxury amenities and water views keep pre-construction sales up.
"World cities can become a victim of their own successes," Barnes said. A city can fail "when rents rise to the point where affordability becomes an issue
And although rental prices have been rising, real estate agents are seeing signs that the high supply may begin to force owners to lower rents -- especially in the Brickell area.
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