Sebastian Vallejo, Miami Beach Managing Director, Brown Harris Stevens

Brown Harris Stevens navigated a tough year, with Managing Director Sebastian Vallejo telling Invest:, “Adapting to changes in buyer protocols and the increasing role of AI in the industry has brought both challenges and opportunities.” However, the luxury real estate market offers “immense potential” and Vallejo sees a bright future for Miami.

What have been the key highlights for Brown Harris Stevens over the past year?

It’s been a challenging year — probably the toughest yet. Despite relatively stable market conditions, Miami has seen a strong influx of buyers, particularly in the high-end luxury market. Demand for larger homes, waterfront properties, and spacious condos has remained high, so we’ve stayed busy. At the same time, adapting to changes in buyer protocols and the increasing role of AI in the industry has brought both challenges and opportunities.

Our marketing department has been a standout. With today’s technology, anyone can sell a home. What sets us apart is our ability to consistently deliver the highest prices for our clients. We’ve maintained our ranking as one of the top firms in the U.S. for achieving the highest average sale price per agent — a testament to our focus on the luxury market and our results-driven approach.

This success stems from our comprehensive marketing platform, which integrates AI and new partnerships to increase property visibility. Maintaining this level of performance has been a major highlight for us.

What makes Miami an attractive destination for people seeking a better quality of life?

Miami has evolved dramatically over the years. Initially, it was a haven for retirees looking to escape harsh winters, and then it became a popular vacation and tourism destination, especially for Latin America’s growing middle class. Over time, the city has expanded its appeal beyond leisure to offer a more sophisticated and well-rounded lifestyle.

In the past, many people from cities like New York, California, or Chicago saw Miami as a small town with little more than beaches and nightlife. However, that perception has shifted as Miami developed world-class dining, cultural institutions, and high-profile events like Formula 1 and Ultra Music Festival. These changes, combined with an influx of top professionals and innovators, have transformed the city into a global destination.

The pandemic also played a pivotal role. Wealthy individuals, previously confined to their penthouses in colder cities, saw their Miami-based friends enjoying outdoor activities and a better quality of life despite restrictions. This encouraged many to move here permanently. Miami now offers not only a vibrant social scene but also the infrastructure — including excellent schools and family-friendly neighborhoods — to support a high standard of living.

How has international investment contributed to Miami’s growth?

International investments have been a cornerstone of Miami’s growth. For decades, Miami was seen as a hub for shopping and leisure, particularly by Latin American investors. Over time, however, it has evolved into a place where people want to establish roots. Billions of dollars have flowed in from countries like Venezuela, Brazil, Peru, and Colombia, fueling the city’s transformation into a thriving residential metropolis.

The pandemic marked a turning point, as high-net-worth individuals who previously saw Miami as a seasonal retreat began spending more time in the city. The relative normalcy during the crisis, combined with the rise of remote work, accelerated this shift. With financial advisors, lawyers, and executives able to close multi-million-dollar deals via Zoom, Miami became an increasingly attractive permanent base.

How have relocation trends impacted Miami’s real estate market?

What we’re seeing isn’t just a shift — it’s an expansion. While Miami remains a popular destination for second homes, more people are making it their primary residence. Buyers from states like New York, Illinois, and California are moving here full-time, which has driven overall market growth.

This trend reflects Miami’s growing appeal as a place to live, not just visit. Families and professionals are drawn to its vibrant lifestyle, favorable climate, and growing opportunities for work and education. It’s not just replacing one type of demand with another — it’s a broader increase in demand across the board.

What areas in Miami offer the strongest growth opportunities?

The luxury market offers immense potential. In areas like Sunny Isles, where space for new development is limited, the focus has shifted to buying and renovating existing properties to maximize value. Rising property values now justify significant investments in upgrades, from state-of-the-art technology to high-end finishes.

Beyond the luxury market, neighborhoods that were once overlooked are undergoing revitalization. New schools, supermarkets, and office spaces are being built, raising the standard of living in these areas. While affordability remains a challenge, this transformation is creating fresh opportunities for growth and investment.

Looking ahead, the next four to five years look promising for Miami’s real estate market and economy. The city’s ongoing development and growing appeal make it an exciting place to invest and live.

How has hurricane season impacted construction and the luxury real estate market?

In the luxury market, properties are viewed as liquid assets. These homes attract buyers from across the globe — the U.S., Mexico, Dubai, and Brazil, among others — making them highly desirable and scarce. That scarcity, combined with high demand, drives prices up, even in the face of challenges like rising material costs or tariff issues.

Luxury properties operate under the same principles as commodities like gold or oil. They become more valuable when they are in short supply and high demand. This dynamic ensures that the luxury market remains strong, regardless of external pressures.

What trends have you observed in buyer preferences over the past year?

Buyer behavior has shifted significantly compared to previous years. During the pandemic, there was an influx of liquidity, and buyers were focused on securing properties as quickly as possible. Today, with rising insurance costs, higher interest rates, and stricter regulations, buyers are more discerning.

Key preferences remain the same — larger homes, more space, and features that support remote work, like home offices. However, there’s a growing focus on long-term living. Buyers are looking for primary residences where they can settle with their families, rather than transient or vacation properties. While demand remains strong, the decision-making process is more meticulous.

What are the benefits of working with a full-service luxury real estate agency?

Buying a home is one of the most significant decisions a person can make, impacting not just their finances but their entire lifestyle. A professional real estate agent provides invaluable expertise, helping clients make informed decisions about where to live, where their children will go to school, and what kind of community they’ll join.

Today’s real estate agents are highly specialized, focusing on specific neighborhoods or property types, such as luxury condos or waterfront homes. This specialization allows agents to provide detailed insights into pricing trends, regulations, and market opportunities, ensuring clients maximize their investments.

For sellers, professional agents offer unparalleled advantages. They know how to price a property correctly, highlight its best features, and use advanced marketing strategies to reach a global audience. A “For Sale” sign might only attract local interest, but a skilled agent can showcase a property to buyers in Dubai, Paris, or Mexico City, increasing its exposure and potential sale price.

What are Brown Harris Stevens’ goals for the next two to three years?

The future looks bright, but it also comes with challenges. Technology, particularly AI, is rapidly transforming the real estate industry. While AI can identify properties that meet specific criteria, it cannot replicate the nuanced expertise required in the luxury market. The differences between properties worth $5 million and $20 million often come down to intangibles that only a human expert can evaluate.

Our goal is to embrace AI and automation to improve efficiency while maintaining the personal touch that high-end clients expect. This year, we’re launching a proprietary platform with advanced search capabilities, market analysis tools, and streamlined processes for agents and clients. This will help us stay ahead in a competitive market.

As Miami continues to develop, our focus remains on delivering exceptional service, leveraging technology, and identifying new opportunities for growth. The next few years will be about adaptation, innovation, and cementing our position as leaders in a dynamic real estate landscape.