Chilean investors position themselves as the most expensive real estate buyers in Miami
One of the favorite countries for Latin American investors to grow their capital is the United States, but in recent years the trend towards the countries with the greatest demand has changed. This 2023, Chilean investors displaced Mexicans and Brazilians and rose as leaders in the purchase of high-value real estate. Know the details here.
The city of Miami, known for its beautiful beaches, vibrant nightlife and warm climate, has become one of the most attractive destinations for foreign real estate investors, thanks to its rapid growth and convenient returns offered by the state of Florida generally.
In particular, Chilean investors have emerged as prominent buyers in the Miami luxury real estate market in recent years.
In fact, they doubled their presence in the Florida real estate sector, going from 3% in 2021 to 6% in 2022, a figure that has remained stable in 2023.
In this article, we will explore the reasons behind this trend and discuss how Chilean investors are influencing the city’s real estate market.
The attractiveness of Miami for foreign investors
Miami offers a unique combination of factors that make it an attractive destination for foreign investors. From its strategic location at the crossroads of Latin America and the United States, to its economic stability and prosperous business environment, the city offers many advantages.
This has also facilitated extensive development in the real estate industry, giving the city an important real estate heyday that undoubtedly stands out from other cities.
In addition, the presence of a growing Chilean community in Miami has made it even easier for Chileans to invest in real estate, as they successfully convey the message of security and prosperity that the US market offers.
Real estate investment as a safe haven of value
Chilean investors have shown a preference for real estate as a way to protect and increase their wealth. The economic and political instability in some Latin American countries has led many investors to seek more stable and secure investment options abroad.
Miami, with its constantly growing real estate market and solid infrastructure, has become an attractive option for Chilean investors seeking to shelter their capital from inflation and other factors, an option that has been increasingly valued over the course of the last decade.
A clear example of this is the positioning of Chile in fourth place among the countries that buy the most properties in Miami, and first place among the countries that bought the most expensive products in 2022, with an average value of US$718,800, followed by the Mexicans (US$701,900) and Canadians (US$611,100).
The rise of the luxury real estate market in Miami
On the other hand, the luxury real estate market in Miami has boomed in recent years, and Chilean investors have contributed significantly to this growth.
The demand for high-end properties, such as luxurious beachfront mansions and exclusive condominiums, has increased considerably, and there are currently a large number of prominent people in the country (celebrities) living in wealthy sectors of the city.
Chilean investors are willing to pay high prices for these properties, which has led them to position themselves as the most expensive real estate buyers in Miami.
Tax and legal benefits for foreign investors:
The tax and legal system of the United States offers certain benefits for foreign investors who buy property in the country. In that sense, Chilean investors can take advantage of tax exemptions and favorable regulations to maximize their benefits and investment returns.
In addition, the state of Florida has friendly characteristics for investors at a general level, since natural persons do not pay income tax, being able to obtain more convenient prices than in other markets.
These tax and legal incentives have further boosted the investment of Chileans in luxury real estate in Miami.
Impact on the local real estate market
The growing presence of Chilean investors in the Miami real estate market has had a significant impact on the city. The increasing demand has led to an increase in property prices, especially in the most exclusive areas.
This has generated a more competitive market and has promoted the development of new real estate projects to satisfy the demand of Chilean and foreign investors.
In summary, Chilean investors have established themselves as the most expensive real estate buyers in Miami, thanks to a combination of factors such as the attractiveness of the city, the search for a safe haven of value, the boom in the luxury real estate market and the tax and legal benefits available.
Their presence has transformed Miami’s real estate landscape and contributed to the city’s economic growth.
Investing in BAI Capital is investing in the United States
With a presence in the real estate sector in the states of Florida, Texas and New York, BAI Capital specializes in generating value from the acquisition of land to the development of mixed-use projects, such as residences for the elderly, student residences, multifamily buildings. for rentals and mixed use, including condos and retail.
Our mission is to safeguard the capital of the partners and the own capital under the minimum risk exposure. With a safe development and going through all the stages: Land purchase, adjustment of urban zoning, commercial vision in architectural development and management of building permits. Then, we take charge of the capitalization, construction and exit with return of the capital and profits to the partners.
In this way, we guarantee fixed and stable returns for your client portfolio. In addition to having a confidential work protocol with encrypted web forms. Use of protected personal data and private meetings with our agents throughout Latin America.
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