Little-Known Islands Across From Miami Beach Are Poised To Explode as Investors Rush In

Two small islands sitting in Biscayne Bay a stone's throw from Miami Beach are about to change drastically as brand-name investors rush into what some experts are saying is a still "undervalued" area.

Treasure Island and North Bay Island—collectively known as North Bay Village—are nestled between the Upper East Side of Miami to the west and Miami Beach to the east.

Until recently, the little islands with a population of roughly 8,000 were essentially used to get back and forth on the causeway from those better known areas. But now, North Bay Village is its own destination and is set to transform into an ultraluxury haven.

"It was kind of off the beaten path, always lagged behind," Chris Wands of Douglas Elliman, who not only sells in North Bay Village but lives there, too, tells Realtor.com®.

But the nearly 5-mile-long islands are rapidly evolving as homebuyers priced out of Miami and early big-name investors surge in looking for value. In a decade, median prices in the metro have climbed from $229 per square foot to $362, according to Realtor.com data.

Approximately $2 billion in real estate and retail is being poured into North Bay Village, estimates luxury broker ISG World.

"North Bay Village is on the precipice of a real shift to the true luxury market of Miami," Wands says. "But there is still opportunity. There is time to get in, but that time is now."

Who's who in North Bay Village

Some bold names who have recently staked their claim on the islands include soccer legend Lionel Messi, who is backing a new sports facility on Treasure Island with the Argentine Football Association. The complex, which broke ground in 2024, contains soccer fields, a new community center, offices, sports facilities, and a park. 

In 2023, North Bay Village saw its first luxury waterfront condo building developed by Pacific & Orient Properties break ground at 7918 West Drive. The 21-story Tula Residences has 54 amenity-laden residences with sweeping views of the Intracoastal Waterway. Condos range from $2 million to $7 million.

Nearby, at 7940 West Drive, luxury brand Pagani is planning a 28-story condo building with 70 residences, set to open in 2029, with prices ranging from $3.7 million to $10 million, and two penthouses in the $30 million range.

Related Group and Macklowe Properties are planning two 43-story Ritz-Carlton-branded waterfront towers with 364 condos on Harbor Island, which is on the north end of North Bay Island. The plans include a private marina and a 9,000-square-foot public park, according to The Real Deal.

Sunbeam Realty, owned by longtime locals the Ansin family, is planning a 2.72-acre waterfront property at 1400 79th Street Causeway, which will have a residential luxury tower called Isle of Dreams with 246 units, three waterfront restaurants, walkways, green spaces, and a dog park.

Locals say there is more to the islands than their proximity to Miami and comparable value.

"The big thing in North Bay Village is the views," asserts Wands. "They are inarguably some of the best views in Miami. You are literally in the middle of the bay, so you have north, south, east, west water views."

"What surprised me most after having moved here myself was how unbeatable the location is," Alexandra Peters with ONE Sotheby's International Realty, who also sells and lives in the village, tells Realtor.com.

"Locals call it 'the heart of the bay,' and that truly resonates once you’re there, surrounded by Biscayne Bay, marinas, small islands with bird sanctuaries, and rare panoramic views of Miami and water."

A downside of the area is that "walkability is still a work in progress," and given all the money pouring into the area, it's not surprising that construction is everywhere.

Getting in early

Wands relocated to North Bay Village in 2021, when he and his family moved from Miami Shores to a gated community on Treasure Island. He bought a four-bedroom, three-bath "fixer-upper" for $1 million, but says the home would have cost at least double that across the bay in Miami Beach.

He's watched as high-end names such as Palm Tree Club Miami and Daniel's Steakhouse moved into the area.

But the brand he's looking most forward to welcoming is supermarket Publix, a staple in South Florida. It's a beloved brand name—such as Whole Foods, Trader Joe's, and Starbucks—that instantly signals a neighborhood's elevation (some would say gentrification).

"This will be the first good supermarket in North Bay Village," Wands exults. "It's a big deal."

Nor will this be just any Publix supermarket. Set to open late this year, it will have a rooftop lounge and host events like beer tastings. The store will be part of Shoma Bay, a mixed-use condominium tower with 333 upscale living units and plenty of retail and restaurants.

Wands estimates home valuations will see a 5% to 10% bump when a good supermarket moves in. It also creates a ripple effect with other retailers, giving them the green light to take a risk on an underserved area.

While luxury prices on the islands are still a steal compared to Miami, that is bound to change in the next few years, says Wands.

Currently, the median price tag is $450,000, but Wands says a large, single-family home will cost you around $1.2 million. The most expensive listing on the islands is a $14 million six-bedroom, six-bath waterfront property built in 2022 and "showcasing mesmerizing Biscayne Bay and Miami skyline views."

One savvy investor taking advantage of the relatively low prices is businessman Pawan Singh, who scooped up 11 waterfront properties on at least 2.5 acres with 500 feet of water frontage, since 2022, dropping $61.5 million, according to The Real Deal. (Realtor.com reached out to his company, Virginia-based NavX Consulting, a management and technology consulting firm, for comment.)

"That would have cost him at least $100 million in Miami," says Wands.

Indeed, spec developer Todd Michael Glaser (who bought Jeffrey Epstein's Palm Beach property) and the Posner Group doled out $105 million for a 2.3-acre estate at 5940 North Bay Road in Miami Beach just across the bay.

Wands is soon listing a newly constructed home on 7701 Coquina Drive. In late 2023, the empty plot sold for $1,025,000, but the brand-new, white-washed, modern five-bedroom, 5.5-bath estate will be listed for $5.9 million.

"On Miami Beach, that would be upward of $10 million," Wands says. "But there is still value here."