Colombians Continue Real Estate Purchases in Miami
By: Anthony Ramamsumiran •
Colombians are continuously leading the forefront for overseas real estate purchases in Miami according to Statistics compiled by the Miami Association of Realtors.
The research also unveiled Colombians investors also recorded 10% of all foreign Miami transactions. In 2015 Brazilians purchased 12% and Venezuelans purchased 13% ranking Colombian investors third. However, in 2016, Colombian investors topped the list.
The Colombians moving to Miami are mostly affluent who want to enjoy their hard earned capital in a luxurious, enterprising location. Miami’s global business center, tropical climate, history of multiculturalism and world class retail therapy are a few reasons why most homebuyers from Colombia and many other international countries continue to steadily purchase Miami real estate.
Colombian investors tend to spend an average of $516,000 purchasing a home. In addition, recent trends from overseas buyers indicates that Florida is one of the leading states for investors.
Miami real estate has grown over the years making it one of the more prominent destinations in U.S. In recent years Miami has become an import/export economy, this can be attributed to the influx of new residents from Latin America and the increased demand for products in both import and export. Not all real estate purchases in Miami are for residential purposes, many are investment properties. Colombian buyers are making high-end purchases and a lot of the new developments in Miami are currently targeting the luxury property sector. One River Point is a good example, this modern haven of luxury consists of two 60 story towers and includes valet parking and other luxurious services.
For 7 months straight Colombia has ranked first for overseas interest for real estate investment in Miami. Over the past two years, the value of Colombian peso has rapidly fallen. The peso weakened from about 1, 800 pesos to around 3, 000 pesos to $1.00 USD. This makes buying property in Miami a very solid investment in comparison to the unstable Colombian pesos. Despite the decline in the Peso, this has not spurned investment and purchases.
Mark Sadek, who is the current chairman of the board for the Miami Association of Realtors said “Miami has long attracted investors from South America, but now we are seeing a greater array of countries searching and buying our properties”. He continued with. “They are coming with their families. They are coming with business plans. They’re coming as end users.” This shows that the area is ideal for investors from different parts of the world.
Sadek also mentioned that Colombian investors top the list for who purchases property in Miami, replacing Brazil buyers as number one on the list. This is totally a turnaround, since from June 2014 Brazil investors were topping the list except for May and December 2014 and July 2015. Figures from the end of 2015 indicates emerging investors include Philippines and Spain. The growing interest shown by investors from Colombia is nothing new as Miami real estate has always attracted investors.
This wave of Colombian investment is set to continue for a while as numbers keep climbing and with investors also targeting the middle range of property prices, it looks like investment will continue in these two sectors.
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