The 8 Reasons to Buy Real Estate in Coconut Grove
A top 8 on why Coconut Grove is such a great investment area and why to buy Coconut Grove real estate
Many of you might have read our latest article in the Miami Herald about the Brickell market and its shift in the supply-and-demand curve. For a very long time every buyer focused on condos and specifically Brickell condos. Brickell was the gold mine for many buyers from all over world and units sold like hot cakes.
The Brickell market has changed considerably in the last years. Latin American investors are holding back and inventory in Brickell is seeing record levels of 25+ months. Although prices are still increasing, the upward trend is slowing down and eventually prices will need to be adjusted. At the same time Miami’s newest investment hotspot Edgewater also reached record prices in a short period of time. The questions many buyers ask me now is “What is next, where should I buy Miami real estate”?
Our answer: “Have a look at Coconut Grove Real Estate“.
8 Reasons why to buy Coconut Grove Real Estate
Why buying Coconut Grove Real estate?
1. A single family home market with a high demand and low supply
The single family home market in Coconut Grove is showing a healthy level of inventory and a steady price increase. On the right hand side , you can see a graph showing the price per Sq.Ft evolution in the last few years indicated for properties with a value of above or below $1,5M. The current inventory in Coconut Grove shows an average of 10 months which indicated a weak buyer’s market. Between 6 and 9 months of inventory we speak of a balanced market while 10+ months is a buyer’s market.
The demand for Coconut Grove homes is large. Many families want to raise their kids in this tranquil and safe area and they would like to live near the best private schools this country has to offer.
Many families that buy Coconut Grove real estate stay in their property for a longer period of time resulting in a supply that isn’t always keeping up with the demand.
Thinking of the future, we see the ever increasing population in Brickell that at one moment in time will want to start a family and move into a single family home. Many of these young professional work in Brickell or Coral Gables and Coconut Grove is the most logical next step for these young professionals. This next generation of young families keeps the demand for Coconut Grove homes high.
2. Coconut Grove Gated Communities
The demand for gated communities has always been high as the exclusivity and safety of these communities appeal to many. There are communities in the Grove where no single home has been sold in the last 2 years yet many people are anxiously waiting for a listing to appear. Many gated communities in Coconut Grove are waterfront and offer amenities like tennis courts and 24/7 surveillance.
3. A limited inventory of luxury condos
Certainly, Coconut Grove has a very different dynamic to the Brickell Condo Market. Coconut Grove has a very limited supply of high-end condos and the ultra-luxury market was non existing before Park Grove and Grove at Grand Bay were announced. The demand for such luxury condos is very much present as can be seen from the success both condo projects have in selling their units.
Coconut Grove is exclusive and it is the new place to be. According to the Wall Street Journal, the Grove has seen a true transition from Birkenstocks to Billionaires in the last few years and this ‘Bohemian chic’ part of Miami is now where everyone wants to be. The demographic that buys in the Grove is primarily looking for a primary residence and not for merely an investment.
4. Buying a Coconut Grove Townhome
Coconut Grove town homes are scarce yet very sought after. As most single family homes in Coconut Grove surpass the $1M rank, most young families prefer the more affordable step into a townhouse.
Most of these typical Coconut Grove townhomes areoffering 3 bedrooms / 2,5 bathrooms and around 2,200/2,300 Sq.Ft of living area. As townhouses are very scarce, prices have been increasing over the last few years. The inventory in Coconut Grove townhomes has been ranging from 4-8 months for a while now indicating a neutral market, with a tendency to be a sellers market.
More about Coconut Grove Townhomes and their return on investment on the rental market
8 Reasons why to buy Coconut Grove Real Estate
Why should you like to live in Coconut Grove?
5. Coconut Grove offers high-end living
Coconut Grove is a small and laid back village in Miami with a bohemian-chic vibe to it. The Grove is pre-dominantly a single family home market and offers a wide variety of homes from cozy Bahamian, timber frame conch houses to multi-million dollar mansions in gated and waterfront communities. Coconut Grove is known for its lush vegetation and tree-lined streets. The Grove’s center offers some vibrant restaurants and bars where locals like to gather during the weekends.
This 24/7 police controlled area has been named the safest area in Miami by the Miami Dade police.
Partially because of its safe environments, the Grove is known for its walkability. The core of the Grove – centered around Cocowalk – is home to many little boutiques, art galleries, ice cream parlors and cozy little lunch rooms and restaurants. During the weekends many Grovites can be found here.
7. Good private and public schools
The Grove is home to some of Miami’s best schools. Read more about schools in Coconut Grove
8. Geographic location
David@siddonsgroup.com | +1 305 508 0899
Meet the team and see our unique insights into the Miami Real Estate Market.
No generalized opinions, we offer an analytical approach.