Election Fears Increase Mexican Investment in Miami Real Estate
Mexican real estate investors are flocking to Miami properties amid the political uncertainty of the country’s upcoming presidential race. Diego Arnuad, broker-owner of Aventura-based DA Luxury Realty, explains that one of his clients, worried that the election will “generate volatility,” has committed to spending $20 million to acquire three Walgreens-leased properties in Miami. Several others have bought multimillion-dollar homes at Prive at Island Estates in Aventura and the Ritz-Carlton Residences in Sunny Isles Beach.
Many are fleeing the unstable Mexican economy for the more secure markets in the US, and South Florida specifically. According to Riviera Point Development Group CEO Rodrigo Azpurua, a much higher portion of prospective buyers he has talked to in 2018 have been from Mexico, Colombia, and Venezuela, all Latin American countries in the midst of economic uncertainty. In fact, 30 percent—much more than the last few years—of the investors funding a new Radisson RED hotel near the Miami International Airport are Mexican.
Mexico is the tenth biggest foreign investor in Florida. As the Miami Association of Realtors reports, about four percent of all foreign investment in South Florida in 2017 was comprised of the $284 million Mexican citizens spent on homes in the region.
Area real estate professionals disagree over future of this trend. Cervera Real Estate CEO Veronica Cervera Goeseke believes Mexican investment in Miami real estate has been increasing over the last 20 years, whereas Antonio Hanna Grayeb, president of FIABCI-Americas, claims the trend is cyclical and always coincides with elections. Arnuad, on the other hand, claims this election is different. He believes if the leftist candidate wins in July, there will be an even higher influx of Mexicans moving to Miami.
As University of Miami International Studies professor Bruce Bagley puts it, “South Florida is looking awfully good” to wealthy Mexican citizens “to hedge their bets with investment properties.”