Island time: Unpacking the rarefied world of Palm Beach real estate

In conversation with property experts, Ruth Bloomfield takes a look at the exclusive world of Palm Beach real estate.

For such a tiny island, Palm Beach certainly punches well above its weight. The starry residents of this narrow strip of land off the Florida coast include Bill Gates, Serena Williams and Sylvester Stallone, and real estate here ranks among the most expensive in the world. 

And what it might lack in acreage, it makes up for with a disproportionate number of beach clubs, high-end restaurants, bars and stylish shops and boutiques.

Ever since Donald Trump won his second term in the White House, the world’s attention has turned to Palm Beach. The president owns the island’s Mar-a-Lago Club, and has lived there during the four years between his presidencies.

The election, thinks Rory McMullen of Savills Private Office, is great news for local real estate – and not simply because of the global spotlight on the island. “Whether you’re for or against [Trump], you have got clarity now,” he says. “Palm Beach is obviously going to see an uptick because there were buyers waiting for the results.”

Even without political clarity, sale prices in this moneyed South Florida enclave – separated from West Palm Beach by the Intracoastal Waterway – were ticking over nicely. Prices rose during 2023 and the start of 2024 before slowing down over the summer (an annual occurrence) and then beginning to gain pace in the autumn.

Palm Beach’s median sale price stands at $10.9 million (£8.8m) according to the latest data from Douglas Elliman. Suzanne Frisbie, a Palm Beach broker at Corcoran, expects prices to at least hold steady through the winter – although transaction numbers have fallen back since the post-pandemic surge of buyers out of cities.

Even in a busy year, fewer than 300 homes exchange hands on the island. For the last couple of years, the total number of sales has dropped below 100 – but Frisbie points out that this is about right for an island where there are only around 2,400 single-family homes.

Chris Leavitt, executive director of luxury sales at Douglas Elliman, believes Palm Beach’s allure to the wealthy, famous and powerful can be partly explained by its unique geography and tax regime. “We have the best weather, we are a no income tax state and we have one of the most beautiful towns in the world,” he says. “Every little inch of the island is manicured and perfect. The best thing is that literally right across the bridge is West Palm Beach, a world-class city burgeoning before our eyes."

“Where else can you find such an idyllic vacation fantasy world so close to a world-class city? If you live in the Hamptons you have to drive two and a half hours to New York City. At Palm Beach, you can live in your $150 million estate and drive seven minutes to your office.”

Historically, Palm Beach was a place where wealthy North Americans went to escape the harsh winters in cities on the East Coast for a few months every year. Many of those who bought property on the island were retirees. McMullen says that the Covid-19 pandemic has now skewed the demographic more towards young families who moved there with children in tow, either because they work from home or from nearby offices on the mainland. “Now, it is a buzzing, young, vibrant place,” he says.

Whatever their age group, most buyers aspire to a waterfront home, which can be tricky since Frisbie estimates that less than 20 per cent of Palm Beach’s limited number of homes are on the “front row” with direct access to either the ocean or the Intracoastal Waterway.

This shortage pushes up prices. Leavitt says he recently sold an oceanfront estate for $9,500 per square foot – about the same as for a top-end home in Central London. But for some buyers a home on the Intracoastal Waterway, colloquially known as The Lake, is the greater prize, and can be just as costly. “If you buy a home on the lake, you can have your yacht right in front of your home,” Leavitt points out.

Like Frisbie, Leavitt is optimistic about price growth in 2025 as new companies move in across the water, bringing with them new potential buyers. “There is so much focus on Palm Beach City, and West Palm Beach is growing exponentially,” he says. “Office towers are popping up. It is a growth spurt of epic proportions.”

First published in the March 2025 issue of BOAT International. Get this magazine sent straight to your door, or subscribe and never miss an issue.