2024-04-24 11:09:04
Although Colombians, Argentines and Brazilians account for 36% of home purchases, they are not the ones who are willing to change homes to Miami. The real estate business in the city is facing its worst period in a decade
The real estate sector in Miami is at its worst in the last decade, even during 2021 when it faced the Covid crisis. (krblokhin via Getty Images)
Although investors Colombians, Argentines and Brazilians account for 36% of home purchases in Miami, there are Venezuelans buying property with the idea of settling permanently in the southern Florida city. ONE published report According to the Miami Association of Realtors, the majority of new owners – 71% – state that the goal of their purchase is to rent the property or have it as a vacation rental.
Only 10% of Colombians who bought real estate in Miami last year want to use it as their regular residence, most (54%) see it as a business opportunity through rental. They share this criterion with 68% of Argentine investors and 25% of Brazilians; a completely opposite position with Venezuelans: 49% of buyers had the dream of installing their main house in town.
In 2019, the largest foreign home buyers in Miami were Venezuelansbut five years later they occupy the fourth position in the ranking with only 6% of the share of businesses closed in 2023. Colombians (15%), Argentines (14%), Brazilians (7%) and Mexicans (5%), they complete the rest of the list over Latin American investors, according to the real estate association.
What are investors looking for?
Although Colombians top the list of buyers, they are not the ones who invest the most: on average, they spent around $446,800 on their properties. Brazilians, on the other hand, look for options in higher categories, and their average spending last year reached almost a million dollars. Second, Venezuelans invested just over $500,000 in their homes.
Although Last year, 6,200 property sales to foreigners were registered in Miami, the sector is not experiencing a good period. The business faced its worst period in a decade, even during 2021 when the market coped with the global consequences of the Covid health crisis. Between 2022 and 2023, transactions fell by more than 25%.
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The cities of Fort Lauderdale and West Palm Beach are the favorites for Hispanics to buy a home in Miami (Bilanol via Getty Images)
The locations of Fort Lauderdale and West Palm Beach are preferred by almost all Latino buyers, except Mexicans. The majority (28%) of investors in that country prefer — according to the unions — to do business with homes in Cape Coral-Fort Myers and Port St. Lucie (14%).
And could the profile of investors in Miami change? Not much. According to online search records maintained by the Miami Association of Realtors, Colombians continue to dominate interest in purchasing real estate. And if only the Latin American countries are taken into account, Costa Rica, the Dominican Republic and Panama also enter the records.
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