JTHS Council of the MIAMI Association of REALTORS - Jupiter, Tequesta, Hope Sound

     

                

Colombian Buyers a Top Market for South Florida Real Estate

by | Aug 26, 2015

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Colombian home buyers purchase the fourth-most South Florida real estate among all foreign countries, according to the 2014 Survey of International Home Purchases conducted by the National Association of REALTORS® (NAR) for the MIAMI Association of REALTORS® (MIAMI). The South American nation of 48 million residents registered 8 percent of all foreign South Florida deals last year. Venezuelan, Argentinian, and Brazilian buyers comprised South Florida's top-three foreign markets.

Miami's multicultural and multilingual population, tropical climate, global business center, and world-class amenities are some reasons why Colombians are buying properties, developing land, and relocating their families here. The top list of South Florida international buyers in 2014:

  Country Percentage of South Florida foreign sales
1. Venezuela 16%
2. Argentina 12%
3. Brazil 11%
4. Colombia 8%
5. Canada 7%
6. France 5%
7. Mexico 4%
8. Italy 3%
8. Ecuador 3%
8. Peru 3%
8. Spain 3%

Colombian Buyer Characteristics
Colombians registered 8 percent of international deals in Miami-Dade; 9 percent in Broward. Colombia ranked fourth in each county among all foreign countries. Venezuelans (17 percent) registered the most real estate deals in Miami-Dade. In Broward, Canadians (18 percent) took top honors.

Colombians spend the third-highest purchase price on South Florida properties among all foreigners, spending $420,000 on average. The average sale price for all buyers in Florida is $245,000.

  Country Avg. Purchase Price for
South Florida Real Estate
1. Brazil $495,000
2. France $424,000
3. Colombia $420,000
4. Venezuela $378,000
5. Argentina $372,000
6. Canada $310,000

All-Cash Buyers
About 65 percent of all Colombian buyers pay all-cash for South Florida real estate. That ranks fifth among all international Miami buyers. France (96 percent) has the highest percentage. Argentina (88 percent), Venezuela (84 percent), Canada (84 percent), Brazil (77 percent) rank above Colombia.

About 81 percent of international buyers in Miami and Broward Counties paid all-cash, compared to 60 percent of international buyers purchasing across the U.S.

About 55 percent of Colombian clients bought in central South Florida urban areas. About 70 percent of Colombians bought condos versus 20 percent who purchased single-family detached homes.

Colombians Buy for Vacation, Rental Reasons
Most Colombian buyers intend to use their South Florida properties for vacation and rental reasons, according to the 2014 Survey of International Home Purchases conducted by NAR for MIAMI. About 48 percent of South Florida Colombian buyers said they desired real estate for both vacation and rental. About 28 percent of Colombians wanted a vacation home; 20 percent wanted a rental home investment; 10 percent listed other reasons; 5 percent are unknown.

About 40 percent of Colombian buyers intended to use their South Florida property for three to six months. About 28 percent said they would use the real estate for one to two months; 10 percent intended more than six months of use; 8 percent said less than a month; 15 percent listed unknown

Safe Place to Invest
Like most South Florida international buyers, Colombians view Miami as a safe, secure place to invest their money. Miami offers physical, legal, and economic security to many international buyers. As one of America's most dynamic real estate markets, South Florida has seen consistent real estate price appreciation during most years in past decades.

Miami Welcomes All Cultures
Colombians also enjoy South Florida's unique multilingual, multicultural population. Miami is the most international city in the U.S. About 51.3 percent of Miami residents are foreign born, according to the U.S. Census. Miami's concentration of foreign-born residents is more than double the national average of 19.4 percent.

Miami's diversity is best seen in the public school system. Students at Miami-Dade County Public Schools speak 56 different languages and represent over 160 countries.

A growing number of South Florida restaurants, nightclubs, and retail stores cater to international natives. Colombians moving to South Florida, for instance, can view Colombian TV channels in their homes, shop at Colombian supermarkets, and eat their favorite foods from home.

World-Class Amenities
A global city with world-class amenities like the Pérez Art Museum Miami and the Adrienne Arsht Center for the Performing Arts in downtown Miami, South Florida offers international and domestic buyers a unique place to live, work, and play.

Direct Flights
Miami International Airport (MIA) offers more than 215 non-stop flights to 147 cities, including 95 international destinations. Fort Lauderdale-Hollywood International Airport (FLL) offers non-stop flights to more than 100 cities, including 50 foreign stops.

Boosting the Market
Miami's growing number of international home buyers have benefited the region and its residents. The buyers have enriched Miami's culture, helped turn our region into a year-round destination, inspired commercial and residential development, and helped lure some of the world's top entrepreneurs and international businesses.

Latin American banks, for instance, have proliferated in Miami as they follow their customers here. Miami has the largest concentration of domestic and international banks south of New York City, with approximately 87 financial institutions and 33 foreign bank agencies. More than 600 Miami companies maintain Latin American headquarters.

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