Around 68% of international buyers in Miami are from Latin American countries, with Canadians and French and Italians also in the top 10, according to the 2014 Miami International Buyer Survey conducted by the National Association of Realtors.
Christopher Zoller the 2015 Residential President of the MIAMI Association of Realtors and a Coral Gables Realtor, says, “International buyers have long been attracted to Miami’s world-class art, beaches and amenities.
“South Florida’s proximity to Latin America and the Caribbean and our more than 1,000 multinational companies offer so many opportunities for foreign real estate consumers. Faced with volatile economies in their homelands, South Florida real estate is considered a secure place to invest one’s money.”
The survey ranks buyers by countries and highlights key characteristics of foreign buyers and shows there are more foreign buyers in Miami than in the rest of the United States. A preview was featured at the March R.E.A.L Awards and Real Estate Summit hosted by the Greater Miami Chamber of Commerce.
Almost three-quarters (72%) of Miami-Dade and Broward members reported working with an international client, around two and a half times the national average of 28%, according to NAR data.
The top countries for consumers purchasing properties in Miami-Dade and Broward counties are:
- Venezuela
- Argentina
- Brazil
- Colombia
- Canada
- France
- Mexico
- Italy
- Ecuador
- Peru
They also buy more higher-end properties compared to all buyers in Florida, with 28% of South Florida foreign buyers purchasing properties valued at US$500,001 or more.
Overseas buyers prefer condominiums in the central/urban areas, which they intend to use mainly for vacation and rental investment purposes.
Around four out of five international buyers (81%) in South Florida purchase properties with cash and the figure is even higher for new-build sales at 90%.
Most MIAMI members speak at least two languages, so are in a good position to maximise foreign sales. In Miami 73% of Miami agents reported working with a foreign buyer, compared to 60% in Broward.
The MIAMI Association of REALTORS partners with more than 125 organizations worldwide and conducts international outreach on a global level. It represents more than 35,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage and is the largest local Realtor association in the United States.
*Sotheby’s International Realty says Miami is one of the top two fastest growing housing markets. Despite many claims that the market would take a decade or more to recover from the Recession from 2007-2009, Miami is the most active construction market throughout the US, with the exception of New York, according to its latest Trends Report.
Key points from the report:
· The Mid Beach area has trended steadily upwards at a 77.1% increase over the past five years.
· Miami’s waterfront
Islands are home to some of the most affluent citizens of the world.
Indian Creek’s 86 residents’ net worth is estimated at over $37 billion,
which is greater than the gross domestic product of half the world’s
nations.
· The average home in Gables Estates is priced at $9,250,000, up a huge 64.9% over 2013 levels.
· Surrounding
communities in The South End area such as Coconut Grove and Coral Gables
have additionally increased 20% more than 2013 levels.
· In 2014, all areas in Miami Beach had double digit price growth compared to the previous year
Daniel de la Vega, President and Managing Partner
at One Sotheby’s International Realty says, “In 2014, the dominant
trend was continued price increases with fewer transactions. We expect
this will continue into 2015. We project the luxury, single-family
market will remain strong. While global economic conditions are
shifting, which may extend market times, the level of demand for luxury,
single-family far outweighs current supply. Although this level of
appreciation is not realistically repeatable year-over-year, continued
double-digit gains are expected during 2015 provided interest rates
remain low.”
The market for condominiums is aimed almost
exclusively at luxury ($1million-$5million) and ultra-luxury
($10milliomn-plus) buyers. Additionally, without exception, Miami’s
Beach’s South Beach (with South of Fifth) and Miami’s North End
submarkets are the strongest in price and pre-construction availability.
Recent development initiatives such as the Miami World centre, a
$3billion dollar master plan in the downtown area demonstrate that the
city has become a magnet for investors on national and international
levels.
Reprinted courtesy of Author Adrian Bishop and OPP.today
Original article: http://www.opp.today/latin-america-buyers-dominate-south-florida-property-sales/
