According to new reports, the South Florida real estate market continued to attract more foreign investors in 2016, making it one of the world’s top destinations for international home buyers. The new 2016 Profile of International Home Buyers of Miami reports that foreign home buyers spent more on South Florida homes and purchased more local residential properties in 2016 than the previous year. The survey includes data from Miami-Dade, Broward County, Palm Beach County and Martin County.
This year’s report indicates that a more diverse group of countries are now investing in South Florida real estate. Over half of all international home sales in the state of Florida happen in Miami, Ft. Lauderdale, and West Palm Beach, according to NAR’s 2016 profile of International Residential Real Estate Activity in Florida. Approximately 80% of all international home sales in South Florida take place in Miami-Dade County.
Foreign buyers purchased $6.2 billion in residential properties in South Florida in 2016, compared to $6.1 billion spent in 2015. Here are the top countries investing in South Florida residential real estate:
1. Venezuela (15% of South Florida foreign purchases)
2. Argentina (11%)
3. Brazil and Colombia (10% each)
4. Canada (6%)
5. Mexico, France, & Peru (4% each)
These top countries make up 64% of total international South Florida closed sales. Venezuela, Brazil, Argentina, Canada, and Colombia accounted for almost half of the $6.2 billion in South Florida international home sales. Venezuelan buyers purchased $868 million and Brazilian buyers purchased $861 million.
The next tier of countries, with each at 3% of international sales include:
4. Dominican Republic
5. United Kingdom
Top Countries by County:
The top countries or origin for consumers who purchased in Miami-Dade are:
Italy, Mexico & Canada (4% each)
The top countries or origin for consumers who purchased in Broward County are:
The top countries or origin for consumers who purchased in Palm Beach County are:
Brazil, Germany, & Italy (7% each)
Argentina, Colombia, Ireland & Russia (4% each)
South Florida international buyers spent an average of $570,000 for residential properties. Miami currently has about double the number of all-cash buyers than the national average. According to the survey, about 72% of all international residential purchases in South Florida were made in all cash.
About 5.5% of South Florida international buyers purchased local homes without visiting Florida. 197% of buyers visited Florida just one time, 25.4% purchased after 2 visits, and 22.1% after three visits to Florida.
South Florida foreign buyers purchased 10,885 residential properties in 2016 compared to 10,678 in 2015, which is a 1.93% increase.
For more news on the South Florida real estate market, visit ASG’s blog. Association Specialty Group specializes in community association management in Miami-Dade, Broward, and Palm Beach counties.