Foreign investment in Miami real estate begins to rebound after declines in pandemic
A report by the Association of Real Estate Agents in Miami revealed that in 2022 there was a rebound in foreign investment within the city, beginning to reverse the decline in this type of investment observed during the pandemic.
The State of Florida and particularly the city of Miami are geographical areas of the United States that have historically attracted foreign capital, mainly for real estate investments.
This capital is usually invested both in large real estate projects and in the purchase of apartments –also called condominiums–, a phenomenon in which thousands of foreigners have participated, many of whom end up moving to the so-called “Sunshine State”.
However, during the pandemic this trend took a break, since as in practically the entire world, foreign investment decreased drastically, essentially because if people could not travel, it was difficult for them to decide to buy.
This was maintained throughout 2020, with 2021 being the year in which the claim began.
Returned foreign investment in Miami
The Association of Real Estate Agents of Miami made a report in which more than 2,000 real estate experts from the city participated, which resulted in the fact that between August 2021 and July 2022, the foreign capital invested in the purchase of properties in Miami County amounted to 6.8 billion dollars, an increase of 34% in relation to the previous twelve months.
The figure escapes any other growth observed in the United States, taking into account that at the national level, the rebound in this type of investment was 8.5%
And if we compare the presence of foreign direct investment in real estate, Miami also absolutely stands out from the national average, with 14% foreign capital participation vs. only 3% nationally.
An interesting particularity among those who invest in Miami is that most of them live outside the country, that is, in their places of origin. For example, 72% of those who bought property in the last year reside abroad.
So why do people buy property in Miami if they don’t live there? According to the study by the Association of Real Estate Agents, more than 70% did it to take advantage of it during their vacations or to generate income in dollars, one of the strongest and most stable currencies globally.
Average cost of properties purchased by foreigners
Foreign investors who bought real estate in Miami in the last year spent an average of $500,000 on each property. And 66% of them made the investment in cash, demonstrating the high purchasing power coming from abroad.
The study also revealed that almost 60% of the acquisitions were condominiums –or apartments– while the countries that contributed the most with foreign investment were Argentina (16%), Colombia (13%), Canada (8%), Chile (6 %), Mexico (6%) and Venezuela (6%).
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 land acquisition to the development of mixed-use projects. Such as residences for the elderly, student residences, multifamily buildings for rentals and mixed use that include 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. Purchase of land, 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 our 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.