Introduction to South Florida’s New-Home Sales
International demand has been high for South Florida’s newest housing — with shoppers abroad buying up nearly half the region’s newly built residences, according to real-estate data released Monday. The Miami Association of Realtors looked at more than 9,000 residential units in nearly 40 newly built condo projects over an 18-month period in the greater Miami area, which includes Broward and Palm Beach counties. The Miami Realtors collaborated with other real estate firms to put together the report, which was prepared by tracking contracts and deposits on new and pre-construction condos.
Factors Driving Foreign Interest
A combination of overseas political instability, lack of state income tax, a “business-friendly government” and good weather are what’s driving the foreign interest, according to the Miami Realtors. This is amid the challenges in South Florida: high mortgage rates, rising median prices and stricter federal immigration policies. South Florida is, in a way, a microcosm of what is happening across the state. Florida is the top destination for global buyer purchases, according to the National Association of Realtors.
Economic and Political Headwinds
“Fueled by economic and political headwinds in their home countries, international buyers see South Florida as a safe haven to build wealth, preserve capital and secure their family’s future,” Daniel de la Vega, president of One Sotheby’s International Realty, said in a statement. “This is especially true for buyers from Latin America, who also feel an immediate cultural and lifestyle connection to the region.” Most of South Florida’s new-construction global sales, about 86%, is by Latin Americans, according to the Miami Realtors’ data.
Cultural Connection
“Latin American culture is definitely part of the lifestyle here,” said Eddie Blanco, the Miami Realtors chairman of the board. “People are going to feel safe because there’s an alignment. You come here, you speak Spanish, everybody else speaks Spanish. It’s a comfortable place to live, the food, culture, the music, it’s all familiar sounds and taste and smell.” Even Inter Miami star Lionel Messi’s move to South Florida had an influence, Blanco said.
Market Trends and Insights
“Contrary to recent headlines, foreign buyers have not only remained active in Miami’s new development market — they’ve increased their presence,” Alicia Cervera Lamadrid, the managing partner of Cervera Real Estate, said in a statement. “Any suggestion that international interest in Miami has waned is simply inaccurate. Miami remains a top destination for global capital, lifestyle, and long-term investment.” If there’s any pressure being felt as a result of the U.S. immigration crackdown, it isn’t having a significant impact on international homebuyers, said Alejandro Chapman, CEO of Kadima Developers. Buyers “want to park their money in stable countries,” Chapman said. “In Miami, it’s very reachable.”
Domestic Buyers and Market Competitiveness
Domestic buyers are acting quickly in South Florida, too, particularly in the new-construction condo market. Because newer condos aren’t subject to the state-required inspection reports to ensure building safety and financial reserve studies, that simplifies “the buying process and eliminate(s) some of the concerns that buyers have,” Blanco said. Regardless if a buyer is domestic or international, though, South Florida’s market remains competitive. Miami ranked No. 4 in the world for the place with the highest number of ultra-wealthy people who have a primary or secondary home in the metropolitan and ranked No. 1 in the world for the most popular “second-home city,” according to a luxury real estate report by Altrata.
Evolution of South Florida
“I’ve grown up in Miami since it was a sleepy town,” Blanco said. “It was a place where people came to party and people came to vacation. Now, people want to live here. This is the place to come to if you’re ambitious and you want grow and you want to make money and you want to have a nice lifestyle, this is the place people are coming in. It’s created a brand for itself that way.”
Conclusion
In conclusion, international buyers are fueling new-home sales in South Florida, driven by factors such as economic and political instability in their home countries, lack of state income tax, and a business-friendly government. The region’s cultural connection to Latin America and its reputation as a safe haven for investment have made it an attractive destination for global buyers. As the market continues to evolve, it’s likely that South Florida will remain a top destination for international buyers and a hub for luxury real estate.
FAQs
Q: What is driving international demand for new homes in South Florida?
A: A combination of overseas political instability, lack of state income tax, a “business-friendly government” and good weather are driving foreign interest in South Florida’s new homes.
Q: Which region accounts for the majority of South Florida’s new-construction global sales?
A: Latin America accounts for about 86% of South Florida’s new-construction global sales.
Q: How does the U.S. immigration crackdown affect international homebuyers in South Florida?
A: According to Alejandro Chapman, CEO of Kadima Developers, the U.S. immigration crackdown is not having a significant impact on international homebuyers in South Florida.
Q: What is the current state of the luxury real estate market in Miami?
A: Miami ranked No. 4 in the world for the place with the highest number of ultra-wealthy people who have a primary or secondary home in the metropolitan and ranked No. 1 in the world for the most popular “second-home city,” according to a luxury real estate report by Altrata.
Q: What is the outlook for South Florida’s real estate market?
A: South Florida’s market is expected to remain competitive, with international buyers continuing to drive demand for new homes and luxury real estate.
