Miami Real Estate Market – Where Are the Buyers Coming From?

The Miami real estate market features flashy mansions, Millionaire’s Row with yachts parked on the bay, South Beach High Rises, seemingly never-ending supply of capital flowing in to Brickell, the Design District, and Edgewater. But the buyers of this prime real estate have appeared to dry up. What is the current market in Miami? Why has the market slowed, and where are the future buyers coming from?

Look Abroad

The Miami Real Estate Housing Market started recovering from the 2008 meltdown in 2011 and has steadily risen since. In examining the reason for the rise, it is a common known fact that many if not most investors were buyers that came from outside the state of Florida, and indeed, outside of the United States. This is a prime example of why international Real Estate News is more relevant than ever before. In 2015 alone, roughly $2.6 billion worth of real estate sales in South Florida were from foreign investment predominantly from South America. Florida has been an attractive destination for foreign buyers thanks to its high rates of job creation, economic growth, and weather. Miami is the undisputed crown jewel of south Florida. The properties going to foreigners are worth more than the median home sold in the area. The median listing price for a home in Miami is around $440,000. That’s the price tag where Americans are living.The international investors are living in another world. Those buyers are in the half a million to million-dollar range, if not more.There are no two indicators more directly aligned than household income and real estate prices, period. When we look for the highest income households in America, they align with the highest residential prices.However, there is a group of investors from all over the world that have the higher net worth and household incomes. They, collectively, are now the critical driving force for selling real estate.Miami has been especially dependent on Latin investment. For Brazilians, Argentinians, Colombians, and Venezuelans, Miami is a second home. It’s bilingual. It’s bicultural. They can get around easily. It is simply the defactocapital of Latin America.  But these countries are restricting the movement of their capital. In cases like Brazil and Venezuela, where politicians have literally stolen a huge part of the wealth of the country, this heavily impacts places like Miami Beach. It is now more than ever imperative that brokers find alternative nations for their real estate products.

How to Capitalize on the Trend

So where are the future buyers of Miami coming from? How do real estate agents identify them? And how do we communicate with them?Look no further than all the new airlines landing in Miami. From WOW, taking passengers from Iceland to Miami for $99, or Air Lingus flights straight to Dublin. The Miami airports are greatly expanding to service visitors more easily and cheaply from all over the world. However, the most exciting prospects are now Chinese, Canadian, Mexican and European buyers. First Air from Canada and Volaris from Mexico have recently started landing on these runways and there are talks of a direct Miami to Shanghai flight at some point in the next two years due to serious interest. A lot of luxury buildings have already translated their marketing materials in to Chinese for future sales.Peggy Fucci, CEO of OneWorld Properties that sell luxury apartments in Miami, recently stated that 70% of the buyers are international. She further stated that they are coming from 38 different countries, not just Latin America. In fact, even Europeans are buying up the properties. Fucci goes on to say that there are lots of buyers from France who are not happy with the political situation there. They’re saying terrorism scares them and some are either looking to move here full time or just invest in Miami for cash flow.In summation, although Latin America will still dominate the Miami Real Estate Market, investors from there will only return to the market when their currencies rebound. In the meantime, it is obvious that the future sales will be coming from Canada, Mexico, Europe, and excitingly China.

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