The Miami real estate market remains a top destination for foreign buyers despite economic slowdowns in Latin America and Western Europe, according to the 2014 Miami International Buyer Survey conducted by the National Association of Realtors (NAR) for the 35,000-member MIAMI Association of REALTORS® (MIAMI), the nation’s largest local Realtor association. The survey ranks buyers by countries and highlights key characteristics of foreign buyers. A preview of the survey was featured recently at the R.E.A.L Awards and Real Estate Summit hosted by the Greater Miami Chamber of Commerce.
There are more foreign buyers in Miami than in the rest of the U.S. Seventy-two percent of Miami-Dade and Broward members reported working with an international client. That’s considerably higher than the national average of 28 percent, according to NAR.
“International buyers have long been attracted to Miami’s world-class art, beaches and amenities,” said longtime Coral Gables Realtor Christopher Zoller, the 2015 Residential President of the MIAMI Association of REALTORS®. “South Florida’s proximity to Latin America and the Caribbean and our more than 1,000 multinational companies offer so many opportunities for foreign real estate consumers. Faced with volatile economies in their homelands, South Florida real estate is considered a secure place to invest one’s money.”
Top Countries Investing In South Florida
The majority, about 68 percent, of international buyers in South Florida originate from Latin America, but several North American and European nations rank among Miami’s top foreign buyers, too. The top countries for consumers purchasing properties in Miami-Dade and Broward counties are:
8. Italy, Ecuador, and Peru
NAR’s 2014 International Buyer Survey also analyzed South Florida’s foreign investment by county. The top countries for consumers purchasing properties specifically in Miami-Dade are:
2. Argentina and Brazil
5. Canada and Mexico
7. Peru, Spain, Ecuador, Dominican Republic, and Chile
The top countries for consumers buying real estate specifically in Broward County are:
7. China, Ecuador, Chile, France, Germany, and U.K.
Additional Survey Highlights
• Spend more on properties than domestic buyers in South Florida. International clients spend a mean purchase price of $444,000 on properties, which is higher than the mean purchase price of all Florida closed sales ($245,000) and the median sale price in Miami-Dade ($215,000) and Broward ($185,125).
• Purchase higher-end properties compared to all buyers in Florida. About 28 percent of South Florida foreign buyers bought properties valued at $500,001 or more.
• Prefer condominiums in the central/urban areas, which they intend to use mainly for vacation and rental investment purposes.
• International consumers tend to buy homes with more cash versus using financing. About 81 percent of foreign buyers in South Florida purchase properties all cash. Approximately 90 percent of new construction sales are all cash.
MIAMI members still have the ability to increase and expand their number of international clients and transactions even more because a vast majority of members speak at least two languages.
Miami-Dade Realtors have more international clients than their Broward counterparts. About 73 percent of Miami-based agents reported working with a foreign buyer, compared to 60 percent in Broward.
Survey results reflect MIAMI’s commitment to increasing South Florida’s real estate brand worldwide and the Miami real estate market’s position as a top international destination. MIAMI has more than 125 partner organizations worldwide and conducts international outreach on a global level.
The survey covers international activity over a 12-month period, from Oct. 2013 to Sept. 2014.
Access the 2014 Miami International Buyer Survey: Miamire.com/