Foreign investors have spent $7.1 billion on houses in South Florida, despite the residential market’s lackluster year. This is up nearly 15% from last year’s $6.2 billion. Not only is the invested amount more than last year, but the number of purchased properties are also on the rise. In 2017, international investors purchased 15,400 properties, a 41.3% increase from 2016, which was 10,900 properties.
‘International buyers invest in South Florida and Miami because they understand the economic potential of America’s youngest major city.’, said George Jalil, the 2018 Miami chairman of the board.
Florida is the top destination for foreign buyers in the US, according to NAR’s 2017 Profile of International Activity in the US. More than half of international house sales in Florida occur in Miami-Fort Lauderdale-West Palm Beach.
The survey included data from Miami-Dade, Broward, Palm Beach, and Martin counties. The survey profiles the foreign buyers based on the investments made in the real estate sector.
Leading in South Florida, was Argentina with 15% of all foreign purchases, according to the Miami Association of Realtors. Following Argentina, was Canada and Venezuela with 11% each, Columbia with 9%, Brazil at 8%, France, Mexico, and Ecuador with 4% each.
International homebuyers in South Florida spent a median price of $339,300 on residential properties in 2017. In comparison, foreign buyers in the US spend $302,300, and foreign buyers of Florida Realtors members had a median price of $259,400.
In Miami-Dade, Venezuela led with 12%. Following Venezuela, were Argentina and Brazil with 9%, and Colombia with 5%. France was at 4%, and Italy and Ecuador were tied at 3%.
Buyers from Brazil and Argentina spent the second most in Miami, with 9%. Colombians represented 5% and French represented 4%. Ecuador and Italy tied for the fifth spot with 3% each. Two cities in South Florida, Doral and Weston, are nicknamed as ‘Dorazuela’ and ‘Westonzuela because they are home to a large Venezuelan population.
In Broward County, Canada led with 12%, followed by Argentina with 8%, Brazil, Columbia, and Venezuela all at 6%.
Survey Highlights
About 66% of all 2017 International residential transactions in South Florida were made all in cash, which is down from 72% in 2016.
South Florida international home buyers prefer condos in the central or urban areas, which they either use as residential rental, vacation home, or both.
37% of buyers say that real estate prices in Florida are not as expensive as in their home country.
About 5% of foreign buyers in South Florida purchased local homes without even visiting Florida, 18% purchased with just one visit, 31% purchased in two visits, and 17% bought in three visits.
57% of MIAMI members work with International buyers, this is almost double the national figure of 30%.