South Florida’s luxury real estate market experienced a downturn in 2025 amid global economic uncertainty and policy changes, according to a report by Knight Frank on home sales valued at $10 million or more.
In Palm Beach, there were 127 sales totaling $2.4 billion last year, compared to 159 deals worth $2.9 billion in 2024. Miami saw a similar trend with 145 luxury transactions in 2025, down from 162 the previous year, though both years reached $3 billion in total dollar volume.
At the start of 2025, local agents expected another strong year for high-end real estate deals. The re-election of President Donald Trump and anticipation around his economic policies led to what was described as a “Trump bump” during the first quarter. Pending luxury contracts in Palm Beach increased by 400 percent year-over-year immediately after the election.
Knight Frank reported that Palm Beach recorded $1.4 billion in sales of homes priced at $10 million or higher during the first quarter of 2025, while Miami followed closely with $1.3 billion.
This early surge placed South Florida among the top global markets for luxury real estate activity. However, this momentum slowed considerably in the second quarter; dollar volume dropped to $594 million in Palm Beach and $495 million in Miami.
President Trump began introducing new tariff policies starting in March. According to industry insiders, it was his April 2 “Liberation Day” announcement that contributed most significantly to the decline—described as the steepest since the pandemic-induced slump of 2020.
Despite stock markets rebounding—the S&P 500 has risen by 14 percent over the past year—market participants say this period of volatility left many ultra-luxury buyers uncertain about major purchases.
There are recent signs that activity is picking up again. In Palm Beach’s fourth quarter, luxury property dollar volume climbed to $302 million from $197 million in the third quarter. Miami’s figures rose as well: from $403 million to $769 million over the same period.
Pending contract numbers also suggest renewed interest among buyers: last week alone, Palm Beach County saw buyers sign contracts for properties with an asking total of $273.5 million across 37 deals; Miami-Dade reported contracts totaling $204.6 million on 24 properties within that timeframe.
