Cash Transactions Shape Miami Beach’s Ultra-Luxury Real Estate Market

Written by:

Rudi Davis

Date:

11 Nov 2025

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The ultra-luxury real estate market in Miami Beach is seeing a significant trend toward cash transactions, reflecting advanced wealth management strategies among high net worth buyers, according to Michael Leduc of ONE Sotheby’s International Realty. In a recent interview, Leduc discussed how this cash-driven environment is impacting luxury property deals.

“I would say 90% of the deals at $10 million plus are cash at least in on the contract,” said Leduc, who has over 20 years of experience in real estate and specializes in luxury waterfront properties at ONE Sotheby’s Miami Beach office.

The Miami Beach ultra-luxury sector has experienced a notable concentration of all-cash sales in the $10 million-plus range. Buyers in this segment often use portfolio-backed lending, leveraging stock holdings or other assets as collateral, rather than relying on conventional mortgages.

Leduc noted that the prevalence of cash transactions demonstrates both the financial means of ultra-wealthy buyers and their strategic approach to wealth management. Many buyers make cash offers initially and then arrange portfolio-based financing before closing, preserving liquidity and securing favorable lending terms.

“Most of this transaction, although it’s a cash offer and for the seller, doesn’t matter, but usually during the process, until closing or right after, but usually right before, to save the cost, they will bring a mortgage, often on either a portfolio or of stocks,” Leduc explained.

The financing options for ultra-luxury properties come with challenges that contribute to the preference for cash. Mortgage costs on properties in the $10-30 million range, combined with interest rates around 6.5% and annual property taxes averaging 1.8%, result in considerable carrying costs.

Leduc also identified a growing trend toward self-insurance among ultra-wealthy homeowners, particularly for new construction designed to withstand hurricanes. Instead of paying high annual insurance premiums, which can exceed $50,000, many owners are opting to self-insure.

“We see more and more what we call self-insured owners, where they say, instead of paying $50,000 a year on my new concrete block and this indestructible house, I will even call them a bunker sometime,” he said.

This move toward self-insurance is enabled by both the financial strength of these buyers and their confidence in modern, resilient construction. New luxury homes are increasingly built to withstand severe weather, featuring elements like 14-foot sea walls and elevated structures that surpass code requirements.

The dominance of cash transactions also supports a growing off-market segment, which Leduc estimates accounts for about 20% of luxury deals. Sellers who prioritize privacy often prefer working with cash buyers who can close quickly without financing conditions.

For sellers, cash offers provide a level of certainty and speed not possible with financed transactions. However, Leduc pointed out that sellers aiming for the highest value typically benefit from broader market exposure rather than restricting themselves to off-market deals.

The continued prevalence of cash deals highlights the sophisticated financial profiles of Miami Beach luxury buyers, who often view real estate acquisitions as components of larger wealth management and tax planning strategies.

Leduc anticipates the cash transaction trend will persist, fueled by the financial sophistication of ultra-wealthy buyers and the advantages of quick, certain closings in a competitive market.