Investments, Locations and Procedures: Answers to the Most Important Questions About the Miami Real Estate Market in 2025

GENERAL MARKET QUESTIONS

1. Why is Miami considered a top destination for luxury real estate?
Miami combines year-round sunshine, endless beaches, tropical vegetation, no state income tax, international accessibility and an active lifestyle with world-class shopping, gastronomy and culture. Miami is a major gateway to Mexico and the Caribbean as well as a starting point for the most exotic cruise trips in the world. Ocean-view properties and branded residences attract high-net-worth individuals seeking both a luxurious lifestyle and investment value. In recent years, Miami has established itself as a preferred destination for the world’s elite and has become not only a tourist, sports, entertainment and cultural center, but also an economic one, with a long horizon for growth and development ahead of it. The real estate market in Miami is highly regulated, sustainable and profitable, which attracts huge interest from foreign buyers and investors. These are just some of the reasons that motivate the world’s most prestigious brands, architects and builders to start building their latest architectural masterpieces there. Brands such as: RItz Carlton, Mandarin Oriental, Waldorf Astoria, Cipriani, Bentley, Mercedes-Benz, Pagani, Saint Regis, Dolce & Gabbana are just part of the future architectural look of Miami.

2. What are the most prestigious neighborhoods in Miami to live in?
Top locations include Fisher Island , Miami Beach (South of Fifth) , Brickell , Brickell Key,   Edgewater , Coconut Grove , Coral Gables and Bay Point – each with varying degrees of privacy, views and amenities.

3. How has the luxury real estate market in Miami performed in recent years?
The market is showing steady growth, driven by internal migration, global investment and demand for branded and oceanfront properties. Prices remain resilient even amid economic instability.

4. Is the time right to invest in luxury property in Miami?
Yes, Miami continues to attract more and more long-term investors. Limited supply, a growing population, and a stable, fast-growing economy make the market a strategic investment.

5. What are the current price trends for waterfront properties and branded residences?
Prices in ultra-high-end branded projects start at around $10,000 per sq m , with a tendency to increase significantly in new construction due to high demand and limited supply. In mid-high-end properties, prices start at around $8,000 per sq m . But Miami is not a market that should be judged solely by price per square meter. It is extremely rare for a person to get the opportunity to buy a “piece” of the future of the most valued and exclusive brands for the world’s elite. In Miami, you are not buying square meters, but a diverse lifestyle, a harmonious environment and “membership” in the prestigious club of the world’s elite.

FOR INTERNATIONAL BUYERS

6. Can foreigners buy property in Miami?
Yes. There are no restrictions on citizenship or residency status to purchase property in Florida.

7. Are there any visa or immigration advantages to investing in property?
Although ownership does not guarantee a visa, investment can assist visa processes – e.g. the EB-5 , B1/B2 , or E-2 visa programs.

8. Are there additional taxes for foreign buyers?
Not at the purchase, but at the sale, the FIRPTA law applies , which requires a 15% withholding from the transaction value, part of which is refundable. It is recommended to consult a US tax expert.

9. Do I need to have a US bank account or LLC to purchase property?
It is not required, but a US bank account makes transactions easier. An LLC can offer tax benefits and asset protection.

10. What is the step-by-step process for buying property in the USA?

The process in the US is legally established, transparent, regulated, and risk-free.

Step 1 : Signing a preliminary contract (Purchase Agreement)

After signing, an initial deposit is required – usually 10% of the purchase price. This deposit is sent to an escrow account managed by a title company or attorney.

Step 2: Pay the deposit

Sent via:

• Bank (wire) transfer from abroad;

• Or through a US account if you have one.

The money goes to an escrow account, not directly to the seller.

*The accounts of the title companies are verified and official wire instructions are received – money is never sent based on email without confirmation by phone.

In greenfield transactions with properties under construction, interim transfers according to the payment scheme determined by the investor/developer are made in a similar manner.

Step 3: Receive a Final Settlement Statement (HUD/CD)

Usually 2–3 days before the transaction is finalized, the title company sends you a settlement statement (HUD/CD) - a detailed breakdown of the amounts.

It indicates the remaining amount to be paid (price without the deposit and with added fees).

Step 4. Final bank transfer

You make a second wire transfer to the escrow account for the remaining amount.

Everything must be transferred before the closing date for the property to be transferred to your name.

Step 5. Closing the deal

Once all money has been received:

• The title company transfers ownership and enters your name as the new owner in the county records;

• The seller receives the funds;

• You receive your title/property document (deed).

Under Florida law, the investor does not have the right to freely use your contributions , except under certain conditions. The funds are held in an escrow account , under the control of:

• title company*;
  
  

• or a law firm (escrow agent).

...and are not automatically released with each installment.

11. What is a Title Company and what functions does it perform?

A title company is essentially an American legal structure that exists only in the US system (and in a limited form in Canada) that acts as a notary, lawyer, and trustee all in one. It is responsible for title searches, managing escrow accounts, issuing title insurance, and coordinating the transfer of ownership.

It can be: a standalone private firm, or part of a law firm or division of an insurance company (e.g. First American Title, Fidelity National Title)

In Bulgaria and most European countries, there is no equivalent, because these functions are performed by a notary, a lawyer, and the state administration.

12. How can I manage my property remotely?
We offer connections with trusted property managers who take care of maintenance, tenants, furnishings and short-term rentals. Some of the buildings offer their own property management and rental program for their owners. Others recommend and work with management companies approved by them.

INVESTMENTS & PROFITABILITY

13. What is the typical return on investment in Brickell, Edgewater or Miami Beach?
Gross yields can reach 12-14%, depending on property type, location and strategy. In new construction, values often increase significantly before completion, with some ultra-luxury branded waterfront buildings registering price increases of over 65% during the construction process.

14. Is it allowed to rent out apartments by their owners in luxury buildings?
Yes. Although each building has a different policy and flexibility regarding this. Some buildings allow short-term and medium-term rentals, even through their own management and rental teams and programs. Others allow their owners to rent out their properties, but with certain restrictions, mainly related to the rental period. Projects such as Dolce & Gabbana Residences , Edge House , Okan Tower and Nexo Residences are friendly to short-term rentals.

15. What are the risks and benefits of investing in new construction?
Advantages include lower starting price, payment in stages and potential profit until completion. Risks include delays and market changes.

16. How do branded residences compare to regular luxury properties?
Branded residences such as Ritz Carlton, Waldorf Astoria , Mandarin Oriental , St. Regis often have significantly higher resale value, thanks to the brand, service, and exclusivity.

17. What are the monthly maintenance costs for luxury apartments?
Fees range from $0.80 to $2.20 (rarely exceeding $1.60) per square foot per month and cover services such as concierge, security, pool and spa, as well as some overhead costs, such as the “HOA” fee being charged only on the interior area and excluding the exterior spaces. There are also taxes (about 1.5%–2% per year ) levied on the market value of the property, and insurance.

18. Do you also offer completed properties or only those in pre-sales and initial stages?

Yes. Although we focus on getting the best possible price for our clients, which is usually associated with early construction and pre-sales, we may also offer fully completed or near-final construction properties. We have full licensed access to all properties available for sale on the market - from uncompleted or newly constructed high-rise buildings to detached, furnished houses and mansions on the secondary market.

NEW CONSTRUCTION

19. What are the advantages of buying a property "green"?
Buying early provides better prices, choice of finishes and the possibility of installment payments. Mega projects usually provide the opportunity to reserve a property at a very early stage, before the foundations are laid, which guarantees an excellent starting price for future owners.

20. Approximately how long does it take to build and complete a high-rise luxury residential project in Miami?

In most cases, the implementation of high-rise projects from the first sod to their completion and transfer of ownership rarely exceeds 3-4 years. Our portfolio includes buildings not only in the initial stage of construction, but also those in an advanced phase, with a closer completion date.

21. What is the standard payment scheme for new construction?
The standard payment scheme looks like this*:

• 10% upon signing a contract;

• 10% when announcing the first sod

• 20-30% upon reaching various construction stages;

• The remainder upon completion.
  * payment scheme may vary depending on the builder and the current stage of the project

22. Which luxury projects will be completed in the next 2–3 years?
Projects such as Mandarin Oriental Residences , Ritz Carlton Residences, Cipriani Residences , Casa Bella , Waldorf Astoria , St. Regis Brickell are among the most anticipated, but this is only a small part of what is to come.

23. Can I resell my apartment before completion?
Yes, through assignment, but only in some projects and with approval from the builder.

24. How do I check the reliability of a builder?
Check past projects, completion times, and the company's reputation. Well-known names in Miami include PMG , Swire Properties, Related Group , Fortune International , SHVO , OKO Group .

LEGISLATIVE, TAX AND FINANCIAL ISSUES

25. What are the transaction costs when purchasing a luxury property?
Buyers typically pay between 1.5% and 1.8% of the property value – for legal fees, fees, title insurance, etc.

26. Do I need to hire a lawyer?
It is not mandatory by law, but recommended – especially for international transactions or new construction. We have proven experts in the field of real estate transactions that we can recommend to you.

27. Are there tax breaks for primary residence?
Yes. Florida offers a Homestead Exemption for a primary residence, which reduces the tax burden and limits annual obligations.

28. What tax is due on capital gains from the sale of property in the United States and in particular the state of Florida?

Florida does not have a state capital gains tax on the sale of real estate, but a federal tax of up to 15% is required to be paid. However, the flexible and well-developed tax system in the United States allows for the reduction of the taxable tax base by deducting a number of expenses and reducing the amount of capital gains tax. Examples of such expenses are: costs of improvements, costs associated with the sale, management, operation, maintenance of the property, as well as overhead. All of these can significantly reduce the taxable tax base. We work with expert local tax experts, with whose help we can minimize the amount of this tax for you.

29. Can I purchase property with cryptocurrency or alternative financing?
Yes. Some projects accept crypto (Bitcoin, USDC), and there are also companies offering crypto collateral financing. Legal and title review is mandatory.

WORKING WITH A BROKER

30. Why should I work with a luxury real estate broker instead of directly with a builder/seller?
A professional broker provides you with access to offers, expertise, negotiations and discretion – key to high-level transactions. At Stonehard Premier, we have an expert and licensed brokerage team on site in Miami and offer a full 360-degree service to our clients, with everything needed to select and smoothly proceed and finalize the purchase process and even beyond. We can cooperate with the future management of the property in case you want to achieve maximum profitability from renting it out. Some buildings offer their own (in-house) program for managing the properties of their owners and renting them out.

31. Do buyers pay commission in Miami?
No. The commission is fully covered by the seller, so our clients receive our representation and service at no additional cost.

32. How do you ensure discretion for high-profile clients?
We work completely confidentially, organize private viewings and collaborate with licensed and proven real estate lawyers. Your personal information is protected and encrypted.

33. Can you help with furnishing and managing the property?
Yes. We work with established designers, furniture suppliers and property managers for a complete service, although buildings in the luxury segment offer finished and furnished properties and/or a selection of designer furnishings (furnishing packages) of the highest class.

34. How does the process of choosing and purchasing the right property for me work?

We start with a personal consultation, then we select offers, organize inspections and guide you through negotiations, documents and finalizing the deal. The advantage is our team in Miami – licensed professionals with experience in international investments and luxury properties, who meet clients on site and organize everything necessary: property selection, physical inspections, negotiations with investors. The purchase does not require mandatory travel, as the process is clear, transparent and remote. Our licensed team in Sofia also has significant experience in the American market and in tandem with Miami we effectively carry out the deal remotely.