Raffles launches Coconut Grove luxury residences as Miami wealth inflows lift demand

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Raffles Coconut Grove luxury homes

Highlights

Raffles, Mast Capital, and BH Group launched Raffles Residences Coconut Grove in Miami, offering 35 waterfront homes starting at $4.5 million each.
Developers limited the unit count despite site capacity, citing scarce vacant land, and report 40 prospective buyers for about 35 available residences.
Florida drew a net $137 billion in income inflows from 2019 to 2023, boosting demand for primary luxury residences among high-net-worth buyers in Coconut Grove.

Coconut Grove project targets limited-supply luxury demand

As first reported by Fortune, Raffles and developers Mast Capital and BH Group are launching Raffles Residences Coconut Grove, a standalone residential building with 35 waterfront homes at 2545 South Bayshore Drive in Miami's Coconut Grove neighborhood.

The project marks the first standalone residential building for the Raffles brand, which is best known for luxury hotels and is owned by Accor. The building will not include a hotel or overnight guests, and sales are launching Thursday through Douglas Elliman Development Marketing.

Units are set to range from 2 to 4.5 bedrooms, with a limited number of penthouses, and pricing starts at $4.5 million. The building, designed by architect Brandon Haw, will include a restaurant, spa, fitness center, and a rooftop with a pool deck, bar, and private pools for penthouse owners.

The developers say they intentionally limited the scale of the project despite the ability to fit more units on the site. BH Group founder Isaac Toledano said the partners acquired an older condominium building and negotiated a condo termination with its owners because vacant land along South Bayshore Drive is now scarce.

Mast Capital CEO Camilo Miguel Jr. said buyer interest is already running ahead of supply, with about 40 prospective buyers for roughly 35 units. The developers plan to collect presales this season and begin construction sometime next year.

Wealth migration strengthens Miami luxury housing outlook

Developers are tying the project to continued wealth migration into South Florida, particularly among high-net-worth buyers seeking primary residences rather than short-term investment flips. Miguel said the company continues to see strong wealth inflows into Florida and described Coconut Grove as one of the state's highest-barrier condo markets.

The neighborhood, on Biscayne Bay south of downtown Miami, has long been known for historic waterfront estates, dense tree cover and walkable amenities. Developers say that character, combined with limited new supply, is helping transform Coconut Grove from a quieter alternative to Miami Beach into a preferred enclave for billionaires.

The broader trend has been reinforced by major relocations and high-value property purchases. Citadel founder Ken Griffin moved his firm to Miami in 2022, while other wealthy buyers including Jeff Bezos, Mark Zuckerberg, Priscilla Chan, Larry Page and Sergey Brin have acquired South Florida homes in recent years.

Florida absorbed a net $137 billion in income from other states between 2019 and 2023, according to a Miami Realtors analysis of IRS data cited in the report. Raffles executives say the Coconut Grove project is designed for long-term ownership, with homes aimed at families that plan to live in the building full time and potentially hold the properties across generations.

In our earlier article on India’s alternative accommodation market, we covered how rising tourism demand is straining traditional hotel room supply and accelerating growth in homestays, villas and holiday homes. The piece highlighted forecasts for rapid expansion in digital listings and bookings through FY29, alongside shifting traveler behavior toward shorter booking windows and more selective spending as capacity constraints persist.

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