March 24, 2017
Over the past year, Miami real estate professionals and developers have focused on targeting Canadians and Americans as buyers for high-end condo projects, as South Americans remain largely on the sidelines due to falling exchange rates.
“Slower economic growth in many countries, the strengthening of the dollar against most currencies, and rising prices due to lack of homes being sold on the market created a more challenging environment for foreign homebuyers,” a 2016 report from the National Association of Realtors stated.
In 2016, Canadians represented 18.9 percent of international real estate buyers in Florida, while Venezuelans accounted for just 7.8 percent. In 2015, Venezuelans made up 18.4 percent of the international market. Overall, in 2016, sales to foreign buyers decreased by 18 percent, causing inventory to rapidly increase. In the final quarter of last year, available condos priced 1 million dollars and up increased 69 percent in Miami-Dade and 34 percent in Broward, compared to the previous year quarter.
Because of this increase in inventory and decrease in buyers, luxury real estate agents and developers are increasingly marketing boutique condo developments in smaller cities to Canadian and domestic buyers. These buyers are traditionally attracted to Broward County, but due to amped up marketing efforts, they are now being shown developments in Miami-Dade. While there is increased competition between the Miami and Fort Lauderdale areas, real estate in Broward County remains strong.
“The constitution of the Broward market tends to be more domestic in nature, and Miami has not been much of a draw for them,” Douglas Elliman’s Florida brokerage CEO Jay Parker stated. He continued, “We have seen a relatively rapid evolution and upgrade of the Broward County condo market in the last 24 months.”
Parker also believes international buyers will return to the Miami real estate market in greater numbers this year. The urgency to purchase real estate in Miami is no longer there, but international buyers are still extremely attracted to the city.
Source: The Real Deal
