Latinos take over the Miami market
In South Florida, almost 60% of real estate purchases come from Latin America.
Miami is an attractive destination for foreign buyers who today represent 65% of real estate purchases. "Latin American buyers are culturally, financially and spiritually connected to the city of Miami," says KAR Properties CEO Shahab Karmely.
Latin Americans are an important part of Florida investors. According to the report of the Miami Association of Realtors published in April, Brazilians accounted for 17% of buyers, followed by Venezuelans with 13%, Argentines with 10% and Colombians with 9%.
Experts point out that there are interested Brazilian buyers who are closing contracts between $ 1 million and $ 5 million. In addition, they assure that after the elections, the Argentineans will return to Miami. "Colombians are more stable and permanent investments, although not in the same volume as in 2002-2007, where it was undoubtedly the largest market in conjunction with the Venezuelan," explains the report published in April.
“Today we see that Venezuelan buyers (the most important for years) are replaced by those of Brazil, Argentina, Mexico and Colombia,” says Kenneth Baboun, managing partner of BGI Capital. "Latin American buyers seek to move their assets to a safe market and the economic and political problems in the respective countries push them to invest in the United States."
According to these sources, Mexicans are increasingly interested in buying property in Miami, due to the change of government towards a left-wing populism. "Brazil and Mexico are the most powerful markets in Latin America, and we believe that in the coming years they will continue to consolidate as the most important markets for real estate in Miami," says Baboun.
One of the projects reflects this recent trend is YOTELPAD Miami, a mixed-use hotel and residential development that will take place in Downtown Miami. OneWorld Properties, the exclusive development sales team launched project sales in June 2018 and has become one of the fastest selling projects in the state, with 80% of sales in less than 9 months, and Mexicans are their main buyer with 28%.
“The attractive short-term rental options of YOTELPAD Miami, without any restrictions, and its retroactive leasing program, offer the opportunity to get a return on your investment,” says Peggy Fucci, CEO of OneWorld Properties. "By offering efficient-sized units, the minimalist product is increasingly popular among buyers seeking affordable prices and Latin American buyers facing the economic crisis in their country."
Smart Brickell, developed by Habitat Group, is another mixed-use set that has also had very fast sales. The intelligent three-tower project, which will be completed in 2021, will integrate intelligent use, intelligent design and technology into each of its towers. The developer has seen that rental restrictions in most condos are limiting for many buyers who wish to have more options.
At Smart Brickell, homeowners can rent their condos up to 24 times a year, using popular applications and programs to share the home like Airbnb or by participating in a fixed annual lease program. “Smart Brickell starts at a much lower price than most luxury projects in Miami and allows buyers to rent their units up to 24 times a year, while providing the added value of high-end services and healthy options and sustainable, ”says Santiago Vanegas, CEO of the Habitat Group. “Smart Brickell is setting the tone for the type of development that Miami needs. Buyers seek flexibility and ease of use from their properties, and SmartBrickell offers just that. ”