Foreign buyers boost luxury real estate market in South Florida
Luxury realtors claim to be going through one of the best periods of luxury real estate sales in South Florida, recording an increase in home sales starting at $2 million.
Foreign buyers continue to play a role in increasing sales, particularly in Broward County, said Carlos Rosso, director of condominium development for the Related Group. He said buyers are looking to North Miami because prices are more attractive, especially in Hallandale Beach and Hollywood.
According to the Miami Association Realtors’ Report, foreign buyers account for more than 32% of all apartment purchases in Broward. In addition to favorable prices, external demand is also driven by instability in Argentina, Brazil, Colombia, and Venezuela.
In Hollywood, Hyde Beach House, of Related Group, is 85% sold out, even one year from completion. Many of the buyers are from Argentina.
Brazilian buyers are still seeking properties in Miami, but now the client’s characteristics have changed from five years ago. “We do not see Brazilians buying more than five years ago. The Brazilian buying now is of change and tired of violence and insecurity, both physical and financial,” said Caio Martin, from the Miami Red Box Realty.
Foreign buyers continue to boost the market in South Florida, but brokers are also seeing an increase among buyers from the North of the United States, mostly those who want to escape state taxes.
“These buyers are from places like Boston, New Jersey, New York, Connecticut, among others. They are already a certain age, sometimes they are selling the business there, and they decide to come to Florida to escape state taxes,” commented Martin. “In general, these buyers are looking for more properties in Broward or Palm Beach. In Miami, we see younger buyers, who are the children or heirs of these elders. They usually go to Miami Beach or Downtown Miami.”
According to a brokerage review on sales of luxury homes and apartments from Sun Sentinel, there was an increase across South Florida compared to the second quarter of 2018 with last year.
Miami-based Keyes Company said sales of properties of $1 million up in the counties of Palm Beach, Broward, Miami-Dade and Martin increased from 390 in the second quarter of last year to 566 this year.