Latin Americans and the Miami Real Estate Market

Latin Americans and the Miami Real Estate Market

Industry experts agree, Latin Americans can take a large portion of the credit for the rebound that Miami luxury real estate is experiencing. Related Group CEO, Jorge Perez, has been quoted as stating that Latin America literally “saved” Miami. Latin Americans, chiefly Brazilians, came to Miami looking for a bargain and brought their cash with them. In 2012, 35% of all foreign buyers in Florida came from Latin American countries, according to an article from The Real Deal. In places like Rio de Janeiro, beachfront condos sell for around $2,000 to $3,000 a square foot. At the same time, the best areas in Miami were going for about $1,000. Obviously those prices have increased with the rise in demand, but the luxury condo prices in Miami still represent a bargain when compared with luxury properties in the best Latin American areas. With all of this buying power coming from this region of the world, it’s no wonder why developers and brokers are interested in what attracts the attention of the Latin American buyer.

A recent article from Forbes tackled this very topic, looking closely at what Brazil’s super-rich look for when they shop for real estate. Sotheby’s International Realty Luxury Lifestyle Report surveyed affluent consumers in Brazil, China, the U.S. and the U.K. For the sake of this piece, we’ll just look at which amenities are the favorites of Brazilian buyers, as it relates to the Miami market. Sotheby’s found that the following luxury amenities were favorable among this all important group:

  • A deep water dock
  • Access to a helipad
  • Waterfront property to enjoy the lifestyle of the sea

And that’s really it. A dock, a helipad, and the sea; simple enough. The survey found that the average high net worth Brazilian owns four houses, with a substantial number of them (38%) owning more. 40% of buyers claimed they’d like to purchase their next property in South America, while 30% said they’d like to entertain Europe. Only 18% of those surveyed said they’d like to buy a house in the U.S., yet they seem to be finding themselves here. Miami is only a nine hour flight from São Paulo and Rio, where most of the wealthy in Brazil reside. And with an ample amount of Brazilian culture added to the warm weather in South Florida, it makes for the perfect home-away-from-home. Additionally, Miami is relatively affordable when it compares to other parts of the world, making the dream of owning a deep water dock, a helipad, and an oceanfront property more of a reality. The report also found that the majority of wealthy home buyers are more confident in the market now than they were five years ago, making it much more likely that they’ll invest. As new condos keep rising and investors keep buying, the luxury Miami real estate market will continue to boom, and Miami’s status as one of the hottest global destinations will carry on.

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