Latinos fill 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 Association of Realtors of Miami published in April, Brazilians represented 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 dollars. In addition, they assure that after the elections, the Argentines 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 from Brazil, Argentina, Mexico and Colombia," says Kenneth Baboun, managing partner of BGI Capital. "Latin American buyers are looking to move their assets to a secure market and the economic and political problems in the respective countries are pushing them to invest in the United States."
According to these sources, Mexicans are increasingly interested in buying properties in Miami, due to the change of government towards a left 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 residential and hotel development that will be held in Downtown Miami. OneWorld Properties, the exclusive development sales team, launched the project sales in June 2018 and has become one of the fastest selling projects in the state, with 80% 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 lease program, offer the opportunity to obtain a return on your investment," says Peggy Fucci, CEO of OneWorld Properties. "By offering units of efficient size, the minimalist product is increasingly popular with 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 project of three towers, which will be completed in 2021, will integrate intelligent use, design and smart technology in each of its towers. The developer has seen that rent restrictions in most condominiums are limiting for many buyers who want more options.
At Smart Brickell, homeowners will be able to rent their condos up to 24 times a year, using popular apps and programs to share the home such as Airbnb or 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. 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 Smart Brickell offers just that. "