A recent report from the David Siddons Group sheds light on the intricate dynamics of Miami’s luxury real estate market in August 2025. The analysis reveals key trends and challenges for both buyers and sellers, emphasizing the importance of cash offers, the impact of new developments, and the nuanced performance across different property types and neighborhoods.
Key Takeaways
- Cash is paramount for high-value transactions.
- The resale condo market, particularly in Greater Downtown, is buyer-favored.
- Coconut Grove leads in condo market strength, while Downtown faces oversupply.
- Miami Beach single-family homes are softening, presenting opportunities.
- New construction impacts resale values, and older condos face rising costs.
- Negotiations are lengthening, but off-market deals remain significant.
- Ultra-prime neighborhoods continue to set national records.
Cash Dominance at the High End
For properties exceeding approximately $2,000 per square foot or $10 million, cash offers are the standard. While some ultra-high-net-worth individuals utilize behind-the-scenes financing like Securities-Based Lending (SBLOCs), the appearance of a cash offer is crucial for competitiveness. Buyers should be prepared with proof of funds and swift closing timelines, while sellers are advised to prioritize cash offers even if the price difference is marginal.
Buyer’s Market for Resale Condos Over $5 Million
The Greater Downtown Miami area is experiencing an oversupply of luxury resale condos priced above $5 million. This imbalance favors buyers, with many units closing at roughly a 10% discount from their original asking prices. New developments are outperforming resales due to superior size and specifications, leaving older resale inventory at a disadvantage.
Market Polarization: Coconut Grove vs. Downtown
Miami’s condo markets are showing significant polarization. Coconut Grove stands out as a relatively "tight" market with strong absorption, while Downtown and Brickell present a "looser" market with higher inventory across all price ranges. Buyers in A-grade buildings with low assessments and strong reserves should act quickly, while sellers need to emphasize unique property features and professional staging.
Miami Beach Single-Family Homes Soften, Offering Opportunity
The luxury single-family home market in Miami Beach is experiencing a softening, particularly in the $6 million to $10 million range, where inventory has increased. While prices in this segment are holding steady around $2,100 per square foot, the $10 million-plus segment has seen a 15% increase. Well-priced homes are selling quickly, and waterfront properties on exclusive islands continue to achieve record sales.
New Developments Pressure Resales
The influx of new luxury condo inventory, especially in Brickell and Downtown, provides buyers with more choices but intensifies pressure on resale properties. New developments offer modern specifications that often outshine older units. Resale sellers must adopt smart pricing and incentive strategies to remain competitive.
Rising Costs Impact Older Condos
Florida’s updated building safety laws, requiring structural inspections and fully funded reserves for buildings over 30 years old, have significantly increased HOA fees for older condos. Many of these buildings also face substantial special assessments for necessary repairs. Buyers are advised to focus on post-2010 buildings or older condos that have already addressed these requirements, while sellers should proactively disclose such details and consider offering assessment credits.
Extended Contract Timelines
Negotiations are taking longer as inventory and buyer options increase. This extended time-to-contract offers buyers an advantage, allowing for more thorough evaluation. However, this trend is expected to reverse when interest rates decline. Sellers should prepare necessary documentation upfront to streamline the process once a buyer is secured.
The Significance of Off-Market Deals
In the ultra-luxury segment ($10 million+), a substantial portion of transactions occur off-market. Sellers often prefer discretion, and top agents facilitate private sales to vetted buyers. While public listing counts may show high expiration rates, the true market activity often lies in these exclusive, unlisted deals.
Segmented Beach Market and Overpriced New Builds
The $6 million to $10 million condo market on Miami Beach is experiencing stalled momentum, with longer days on market and increased discounts. Meanwhile, overpriced new construction homes are failing to sell, with a significant portion of new inventory remaining unsold. Buyers are cautioned to negotiate and ensure new builds offer true value beyond just being new.
Miami’s Ultra-Prime Neighborhoods Set Records
Despite some market softening, Miami’s ultra-prime enclaves like Fisher Island and Gables Estates continue to set national records for luxury real estate. These areas demonstrate structural demand driven by tax advantages, wealth migration, and scarcity. Sellers in these exclusive neighborhoods must price precisely according to comparable record sales, while buyers should be fully prepared and prioritize quality factors.