M
iami's real estate market has skyrocketed since the pandemic, with prices rising almost 50% in real terms since 2019. According to UBS's 2024 Global Real Estate Bubble Index, Miami now shows the highest risk of a bubble among major cities, surpassing Tokyo and Zurich.

    However, experts say that savvy buyers can still find safe havens in the market. Ana Teresa Rodriguez, founder of ATR Luxury Homes Group at Coldwell Banker Realty, points to waterfront properties as a reliable investment. "Single-family homes on the water are unbeatable," she says, citing luxury deals like Jeff Bezos's Indian Creek purchase and David and Victoria Beckham's $80 million Miami Beach mansion.

    Rodriguez recommends buying in up-and-coming areas like Bay Point, Miami Shores, and Old Cutler Bay, where prices may be more stable. She's particularly bullish on Bay Point, where she's listing a six-bedroom home with 85 feet of waterfront for $20 million.

    Other experts disagree about the bubble risk, but agree that certain neighborhoods are safer bets than others. Ruthie Assouline, an Elliman broker, suggests focusing on areas with low inventory and high demand, such as Bal Harbour, prime Miami Beach, and the Sunset Islands. "In these areas, more retail and hospitality projects are coming online, which will drive up prices," she says.

    Examples of safe waterfront investments include a $35 million home on Sunset Island III with 90 feet of waterfront and a private dock, and an $16.9 million estate in Old Cutler Bay with eight bedrooms and a 100-foot dock.