Art Basel – What It Means for Miami Real Estate.
A New Art Capital
Widely regarded as the global stage for art, Art Basel Miami is an international art fair that takes place during the first week of December at the Miami Beach Convention Center.
A sister fair to the original Art Basel, founded in Basel Switzerland in 1970, Miami has been home to the world renowned event since 2001. In that time, it has grown to be North America’s foremost international modern art fair and cemented Miami’s status as a world cultural capital.
Art Basel in Numbers
780+ private helicopters touched down in Miami last year
250+ galleries came to Miami Art Week to exhibit their collections
2500+ art pieces were displayed
70+ thousand people visit Miami during the week of Art Basel
$10 billion – dollar amount of all art pieces exhibited at Art Basel
$15 mln – the most expensive piece ever sold at Art Basel: ‘Portrait of a Man in Blue’ by Francis Bacon
Who Attends Art Basel?
Well, the 780 private jets that touched down in Miami for last year’s fair should provide some indication. That amount of private jets converging on one event is rivalled only by the Super Bowl. In fact, Art Basel’s widespread economic impact can be equated to hosting a Super Bowl in Miami each day of Art Week. On board some of those jets last year were a host of A list celebrities including Leonardo DiCaprio, Kim Kardashian, Lionel Richie, Lennie Kravitz and Hilary Swank.
Celebrities aside, the fair attracts an international elite crowd with an eye (and bank account) for art. Around $3 billion worth of artwork is sold each year, making Art Basel Miami the biggest contemporary art fair in the US. There’s no doubt that the fair draws a sophisticated, savvy and highly affluent crowd that are enticed by Miami’s cosmopolitan lifestyle, rich culture and tropical climate.
“The Art Basel Effect” on Real Estate
Art Basel is not only a week for exhibiting sensational art, but showcasing the city’s state-of-art real estate too. Essentially, Art Basel creates a concentration of elite buyer prospects that are not only interested in remarkable artwork, but also have a passion for chic architecture, exceptional design and luxury real estate.
For one week, the world’s most connected and deep-pocketed investors converge on Miami – creating the ideal occasion for realtors to showcase their finest condos, apartments and projects to the social elite. These are serious buyers, and many of them are looking to invest in the vibrant Miami housing market.
With so many influential buyers in town it’s the perfect opportunity for brokers and developers to highlight the city and their projects. Additionally, the Miami art scene has enabled real estate professionals to relate to cosmopolitan buyers and elevate the overall price point for the market.
Savvy agents and developers are able to use art to attract homebuyers to spaces and neighborhoods and present real estate offerings that will pair seamlessly with a new piece of art. Miami seems to strike a chord with the wealthy trendsetters that visit during Art Basel, and real estate brokers across the city witness a spike in luxury condo sales during the event and the months that follow.
Rising Rental Returns
Home sales aren’t the only thing to increase during Art Basel – rental prices also skyrocket during the week of the fair. In fact, rental returns can more than double during the Art Basel period, with luxury accommodation fetching five figure sums for each night of the fair.
Jennifer Restrepo, owner of Five Star Luxury Travel, expects that a penthouse unit that typically costs $13,500 a night to soar to as much as $25,000 a night for the art fair. This is obviously great news for property investors as they are certain to receive exceptionally high returns on their investments during this time of year.
More Than Just an Art Fair…
The fair obviously has an immediate impact on real estate sales and rentals, but it also creates a much longer positive impact on the city and the future return on investment properties for years to come. It has elevated Miami’s metropolitan status and established the city as an art destination.
Art is increasingly becoming part of the city’s growth – with new galleries and museums poised to further enhance Miami as a cultural capital. And according to a Knight Frank report on global cities, where art or museum quarters lead, retail and restaurant culture follow. And wherever there is rich culture there will continue to be investment from developers flocking to build the best condominiums, skyscrapers and resorts.
This combination of culture, climate and cosmopolitan lifestyle has ensured that Miami’s luxury real estate scene has remained red hot, and while the property prices haven’t yet returned to pre-crisis levels, Miami has certainly proven itself as a favored destination for the uber-wealthy.
If one things for sure, Art Basel promises to bring with it an annual influx of affluent buyers with an eye for high end art and the desire for luxury real estate – as well the bankroll to match.