South American Buyers Rule Miami Real Estate Market
Miami’s real estate market has a high concentration of Latin American buyers who continue to dominate luxury property investments, taking advantage of the city’s economic stability and growth. Miami has become a more prominent destination for buyers due to its cultural and economical diversity and several North American, European and Asian nations have ranked among Miami’s top foreign investors, too. In 2015, South Florida’s top international buyers included consumers from Canada, Mexico, France, Spain, and Italy. Still, the majority of foreign buyers from South America continue to hold the title for most property investments in Miami-Dade County.
A survey by the Miami Association of Realtors revealed that these wealthy investors utilized their cash buying power to acquire ultra luxury residences throughout Miami and Miami Beach, accounting for 14 percent of foreign home property investments in South Florida in excess of $1 million. About 75 percent of South Florida international buyers paid all-cash. This heavy demand and cash-buying trend created a competitive global marketplace for buyers outside the US leading to a surge in supply for depleted inventory. The National Association of Realtors revealed that foreign buyers purchased $102.6 Billion in residential property in the first quarter of the year, according to the Profile of International Activity in U.S. Residential Real Estate.
Although Latin American countries controlled the market in many aspects, new countries have demand a piece of buying action. The Miami-Miami Beach metro area ranked as the top destination for Chinese buyers in Florida, according to NAR’s 2015 Profile of International Home Buyers in Florida. About 42 percent of all Chinese buyers purchased in Miami-Miami Beach. The top countries investing in South Florida real estate included but are not limited to:
Venezuela, the oil rich country ranked as the top foreign buyer in Miami-Dade by registering 26 percent of all foreign transactions last year. 74 percent of Venezuelan buyers paid all cash for South Florida real estate and purchased the most real estate among all foreign countries.
Brazil was third among foreigners searching for South Florida real estate this year. Seeking an alternative to their countries uncertain real estate market, Brazilians have returned to take advantage of better economic conditions and the more stable Miami market.
Argentina The South American nation registered 10 percent of South Florida sales last year and the third-most purchases among all foreign buyers. About 80 percent of Argentinean buyers paid all cash for South Florida real estate in 2015. Among all foreign buyers, Argentina ranked second for percentage of cash sales. Argentinean developers also view Miami as a stable environment to build. Projects include, a $550 million district in Miami Beach developed by the Faena Group, Oceana Bal Harbour is the second project in Miami for Argentinean Developer Eduardo Costantini and the Château Beach Residences by Argentine developers Sergio and Manuel Grosskopf.
Colombia, for a consecutive 7 months Colombia, is the No. 1 country searching for Miami property and was the second biggest spender in South Florida investment property last year. Colombians moving to Miami are mostly affluent buyers seeking high-end purchases in new developments in the luxury sector. The fall of pesos greatly attributed to Miami becoming a solid investment for Colombians.
Canada in previous years has been overwhelmed and priced-out by the competiveness of the South American buyers. Canadians the fourth-most South Florida real estate among all foreign countries and purchased 3 percent of all foreign sales in Miami-Dade County. The majority of Canadian buyers in Miami invest in vacation homes choosing to use their properties for half of the year.
Secondary tier top countries of origin investing in Miami Real Estate include Mexico, France and Italy; other top countries include Ecuador, Spain, Russia, Dominican Republic, Chile, China, United Kingdom and Peru.