Now that travel restrictions are easing, international buyers are returning to South Florida’s luxury market.
Foreign Buyers “Coming Home” to Miami’s Luxury Market
Foreign buyers have been the “meat and potatoes” for Miami’s luxury housing market for years. Then, 2020…you know what happened.
However, even the pandemic and international travel grinding to a halt didn’t stop international buyers from purchasing homes in Florida during April 2020 and March 2021. According to the National Association of REALTORS®’s 2021 Profile of International Transactions in US Residential Real Estate Report, approximately 22% of all US homes sold to international buyers during April 2020 – March 2021 were purchased in Florida.
Sure, 22% is a big difference from the usual 75% sold to international buyers in Florida but 22% is better than no percent, according to Craig Studnicky, CEO and president of Related ISG Realty Group in Miami.
Studnickly said, “It’s like you’ve been walking through a desert for 10 miles and someone gives you a glass of water and (that water) feels like a lake. We are seeing some international buyers, but nothing close to what we used to see.”
International Buyer Population Shift
Miami has long been and continues to be a hotspot for foreign buyers. Tony Rodriguez-Tellaheche, co-founder and managing broker with Prestige Realty Group in Miami, said, “When other countries are doing well, like Venezuela and Brazil (were doing) years ago, people from those countries liked to buy in Miami, often called the capital of Latin America. When they’re not…people want to get their money out…and come to Miami to buy homes.”
More buyers from Peru and Colombia have stepped up to the plate to buy in the Miami-Fort Lauderdale-West Palm Beach area than before, primarily due to liquidity and stability concerns in their home countries, according to the Florida Realtors Association. Mexican buyers (a constant source of 5-10% of all sales in Miami) and Canadian buyers are also considered to be staples within Miami’s “permanent home or second homes owners.”
Demand in South Florida Luxury Market Even Hotter
Now that foreign buyers are returning to South Florida, demand is likely to become more competitive than ever. During pandemic 2020, according to Studnicky, 90% of all lux buyers in the Miami area were domestic buyers. Now, as more and more international buyers trickle back to South Florida, buyers from all over the world will face increased competition.
Thanks to the National Association of REALTORS®, the Florida Realtors Association and MansionGlobal.