Lionel Messi, arguably the greatest football player in the world, recently signed a deal with Inter Miami, the football club owned by English football legend, David Beckham. This deal is extremely significant because it goes far beyond the football industry. As a matter of fact, the Argentinian star has become far more than just a football star. He is a brand and a symbol for billions of people. To show how influential Messi is, Inter Miami sales tickets jumped from $29 to $468. This is a 1,513% increase in value. And the Instagram account of Inter Miami jumped from 1 million followers to nearly 8 million. Thus, his move to Miami is extremely important for the MLS, but especially for Miami because his presence in the largest city in Florida will unavoidably shape its real estate market.
The post-pandemic housing surge has eased, whether because prices just got too high, interest rates made buying too costly, or employers are recalling employees back to their offices and cubicles. The arrival of Messi will trigger a surge in the Miami housing market again. The real estate analysis firm, RentCafé says that it is possible Messi’s stardom could impact the real estate market even in a place like South Florida which has long been a magnet for celebrities. The firm further argued that a property purchase by Messi in a particular neighborhood could drive up the prices in that area.
Messi could play in his first game at Drive Pink Stadium in Fort Lauderdale in July, according to the Miami Herald. Messi now owns three units in Sunny Isles. He paid $5 million for a unit on the 47th floor at Porsche Design, and just over $1 million each for units on the 40th and 43rd floors of the nearby Trump Royale Tower.
It was reported that Messi could look for a larger home in Broward County’s suburbs, like Weston, Davie, or Southwest Ranches, said Ben Moss, who heads Compass’s sports and entertainment division. Messi’s contract runs for 2.5 years, with an extension option.
Miami is one of the wealthiest cities in the United States. A report shows that Miami is ranked 14th on the list of overvalued real estate markets. And Messi’s settling in the city will not only drive up the price of real estate in the city, it might actually create a housing bubble. The adoration for Lionel Messi will create euphoria. Euphoria is a key step in the formation of a speculative bubble.
Obviously, the national housing market will not be in a bubble, unless the Federal Reserve reduces interest rates, but the Miami housing market is gradually moving in that direction. The price of housing will start to inflate due to growing demand and this growth in demand for housing will jump up the price of homes in the Miami area while there are not enough houses to supply it to everyone. Speculative bubbles always end up bursting once they reach the panic stage. However, bubbles can deflate prior to reaching the panic stage. In that case, a market crisis would be averted. If the euphoria around Messi’s arrival in Miami settles down, then the Miami housing market could avert a crisis.