The most active buyers in the Miami home and condo market are Brazilians, Argentinians and Venezuelans. These groups have been attracted to the Miami scene for a number of reasons. The weather is great, the shopping and restaurants are unsurpassed and the culture is familiar and enticing.
These South American buyers are usually wealthy and frequently make all cash deals. Ralph De Martino, a Miami real estate broker, explains that many foreign buyers would rather have their money in American properties than in American banks. He also mentions that there is sometimes unrest in South American countries and his clients want to escape that. Venezuelans are especially sensitive to the changes that are occurring with the regime of Hugo Chavez. Even middle class citizens of Venezuela look to the Miami market for great deals, since relocation may be in the near future.
Condos in the Bal Harbour area have been very popular with these buyers. Many South Americans are buying in the newly renovated and now highly popular Brickell downtown district. Mr. De Martino has also noted that while Ecuadorians have previously liked the Orlando market, many of them are now considering Miami.
South American buyers are busy but Latin American investors and developers are also beginning to make things happen in Miami. “Condo King” Jorge Perez is targeting the Hollywood area for a new condo project aimed at Latin Americans. Hollywood is located just north of Miami and is a traditionally older and upscale area. The Miami Herald reports that at least three new 250 to 400 unit condo projects are in the planning or pre-construction stages in Miami. These units are being developed by Latin Americans as foreign dollars continue to flow into the Miami area.
The Miami housing market is not totally controlled by South Americans, however. Although they are a serious force in the condo market, Americans are beginning to return to the familiar online sites like craigslist and trulia to search for great deals. This situation will cause prices to rise as American and South American dollars begin to chase condos and homes in Miami.
Most observers like Mr. De Martino and Jorge Perez truly believe that the bottom of this great housing recession has been seen and they are moving quickly to develop untapped areas. This is definitely a sign that the Miami housing market is starting to wake up.
