MIAMI BEACH LURES OUT-OF-STATE BUYERS
Miami’s property market, particularly modern condos in Miami beach are going through a period of boom at the moment. But it’s not just resigned to local buyers, the city has seen a sizeable increase in sales from out-of-state and international buyers in recent months too.
According to a recent report from the Miami Association of Realtors, sales of luxury homes (those worth over $1million), rose by nearly a quarter (21.5%) last year. Many of these Miami luxury homes were scooped up by cash buyers, a reflection of the many international buyers who choose to “bypass what can be a tricky mortgage application” otherwise.
South American Influence
With colonial Spanish influence seen throughout the city, it has always attracted a South American demographic. This remains buoyant according to the property report, which shows that Argentinian buyers accounted for 15% of foreign purchases in Miami luxury real estate between 2016-2017.
Over half of foreign purchases were seen in Miami-Dade, of which most (12%) were snapped up by residents from Venezuela.
Opening up to Europe
But as the market matures, a European influence has started to creep in too. This may be in part due to the city’s great climate, appealing Miami luxury condos, growing business infrastructure, and influence of tech and finance businesses relocating to Downtown and Brickell.
However, it would be remiss to rule out the unsettled economic and political status of some countries, and the uncertainty of Brexit looming over the UK and Europe.
As such, recent reports highlight that French buyers accounted for four per cent of Miami sales, followed by Italy with a three per cent share.
Another country with a growing interest in Miami’s luxury homes, is Turkey, which has been steadily investing in the market. Only two years ago, developers attributed about five per cent of preconstruction sold to investors from Turkey.
This could be a reflection of the uncertainty of its own economy, with Miami luxury condos offering a safer return on investments. Another factor is the recent route launch from Istanbul to Miami by Turkish Airlines, opening up the marketplace since 2015.
Business is Booming
As well as state tax incentives, the growing tech scene, coupled with regeneration in Downtown and Brickell has upped Miami’s appeal. Some even say that it now rivals New York with its thriving nightlife and growing financial district, making it attractive to young urbanites.
But that’s not all. Miami beach real estate is becoming popular with businesses too. A number of out-of-state companies have relocated to Miami’s warmer shores of late, from Downtown and Brickell to Coconut Grove and Wynwood.
This was seen with investors from I Squared Capital, who relocated from New York to Miami in recent months, owing to its favourable tax benefits.
The final word on the matter however goes to New York Governor Andrew Cuomo, who believes that recent changes to federal law have cost the city $2.3 billion, much of which is Miami’s gain.
Villazzo Realty can help you with building, buying and investing in ultra-luxury properties. For more information, get in touch with our dedicated luxury real estate agent today.