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Updated: April 6, 2024 @ 3:36 am
Benja Cremasci and Leo Messi on the field.
An aerial view of Miami’s freedom park.
Fernando Echeverri, CCIM.
Benja Cremasci and Leo Messi on the field.
Miami has long been a top destination for tourism and business. Today, it has also become a renowned sporting venue, hosting events like Formula One, Copa America, the 2026 FIFA World Cup, and serving as home to the Inter Miami CF.
The recent addition of Lionel Messi has significantly enhanced Miami’s status in the sports world, propelling it to a new level of global recognition. This has positively impacted Miami’s real estate market in several ways. First, it has generated increased economic activity, benefiting the hospitality and retail sectors. According to the Greater Miami Convention & Visitors Bureau, Messi’s arrival has the potential to increase tourism by 10%, translating to an estimated $400 million boost in tourist spending.
An aerial view of Miami’s freedom park.
Second, Miami invests in infrastructure as a host city for sporting events. The construction of the $1 billion Freedom Park Stadium by Inter Miami CF is expected to create 15,000 new jobs for residents. Third, the Messi effect has boosted Miami’s international appeal, attracting more foreign investors. Miami’s global visibility has made it a desired destination. Florida’s tax-friendly status makes the commercial real estate market appealing to domestic and international investors.
Where are the opportunities? The local economy is the first beneficiary. Additionally, the Messi effect could significantly benefit specific areas within Miami. For instance, North Bay Village has partnered with the Argentine Football Association (AFA) to develop a complex that will include soccer fields, a new community center, offices, sports facilities, and a park. The surrounding areas are already experiencing increased demand.
Additionally, there has been a growing demand for areas near Miami Freedom Park. Residents recognize the need for additional rental housing and are interested in investing in multifamily properties. The Copa America in 2024 and the FIFA World Cup in 2026 will likely attract more visitors to Miami, increasing demand for short-term rental properties such as luxury condos and vacation homes.
Fernando Echeverri, CCIM.
Miami’s selection as a host city for the 2026 FIFA World Cup and the 2024 Copa America solidifies Miami’s status as an international hotspot, drawing increased attention to its economy and real estate market. According to a study by The Boston Consulting Group (BCG), each host city of the 2026 World Cup could experience incremental economic activity, generating a net financial gain of $90 million to $480 million.
The Formula One race has also proven to have a positive impact on the local economy. A report by Applied Analysis found that since its debut in 2022, the Miami Grand Prix has brought in $798 million to the local economy.
In conclusion, Miami’s emergence as a premier sporting destination has not only enhanced its global reputation but has also had a tangible impact on its economy and real estate market. With the city continuing to attract high-profile events and investments, Miami is poised to maintain its status as a thriving hub for sports, business, and leisure for years to come.
Fernando Echeverri is a broker specializing in commercial investment properties and works with Great Properties International on Key Biscayne. fe@kbrealtor.com or call (305) 458-6101.
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