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



Venezuelan Home Buyers Rank as South Florida's Top International Clients

by | Feb 10, 2016

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Venezuelan consumers bought the most South Florida real estate among all foreign countries last year. The oil-rich South American country with 29 million residents registered 13 percent of South Florida sales last year, according to the 2015 Profile of International Home Buyers in MIAMI Association of REALTORS® Business Areas. The National Association of REALTORS® (NAR) conducts the annual profile for MIAMI.

Venezuela has led the annual list since NAR began conducting surveys for MIAMI in 2006. South Florida's global business center, world-class shopping, affordability compared to other world cities, and outdoor lifestyle are some reasons why Venezuelans purchase property here.

South Florida's top international buyers in 2015:
Country | Percentage of South Florida foreign sales
1. Venezuela 13%
2. Brazil 12%
3. Argentina 10%
3. Colombia 10%
4. Canada 7%
5. Mexico 5%
6. France 4%
6. Italy 4%

Venezuelan Buyer Characteristics
Venezuelans preferred Miami-Dade over Broward, according to the 2015 Profile of International Home Buyers in MIAMI Association of REALTORS® Business Areas. Venezuela ranked as the top foreign buyer in Miami-Dade by registering 26 percent of all foreign transactions. Venezuela had a 16 percent share in Miami-Dade in 2014.

In Broward County, Venezuelan home buyers finished in a tie with Canada with the most purchases among all foreign buyers. Venezuela and Canada each had 16 percent of all foreign sales in Broward.

Venezuelans paid on average $488,000 for South Florida properties, which is significantly higher than the $258,000 average among all buyers in Florida.

Country | Avg. Purchase Price for South Florida Real Estate 1. Brazil $766,000 2. Colombia $516,000 2. Argentina $516,000 3. Canada $510,000 4. Venezuela $488,000

All-Cash Buyers
About 74 percent of Venezuelan buyers paid allcash for South Florida real estate. Among all foreign buyers, Venezuela ranked fourth for percentage of cash sales. Canada (86 percent), Argentina (80 percent) and Brazil (75 percent) rounded out the top-three countries. About 75 percent of South Florida international buyers paid all-cash, according to the 2015 Profile.

Most Venezuelan buyers purchased condominiums in the central city/urban areas. As far as the type of property, about 72 percent of Venezuelans bought condos versus the 21 percent who purchased single-family homes. About 67 percent of Venezuelan clients bought in central city/urban areas.

Venezuelans Buy Properties for Rental Reasons
Venezuelans mostly use their South Florida property for residential rentals. About 33 percent of Venezuelans intend to use their properties for residential rentals; 23 percent for primary residence/retirement; 17 percent for vacation home; 14 percent for vacation and rental; 6 percent for commercial rental; 5 percent for student use; 2 percent listed other reasons.

About 55 percent of Venezuela buyers intended to use their South Florida properties for up to six months each year. About 26 percent of Venezuelans didn't list an intended months' use.

Safe Place to Invest
Like other international buyers, Venezuelans view Miami as a safe place to invest their money. In an ideal location for a resort lifestyle, Miami provides foreign home buyers safety of investment that they don't typically see in their respective homelands. The U.S. has a trustworthy legal system, which places importance on property rights.

Historical-low interest rates in addition to worldclass condominiums with oceanfront views are attracting international home buyers to South Florida.

Miami Welcomes All Cultures
Venezuelans 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 foreignborn residents is more than double the national average of 19.4 percent.

Students at Miami-Dade County Public Schools, the nation's fourth largest school district in the U.S. with 345,000 pupils, speak 56 different languages and represent over 160 countries. Miami's multicultural background can be best seen in its list of international home buyers.

Affordability, 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. Miami is not only a dynamic place to live, but it's also incredibly affordable compared to cities like New York and San Francisco.

A 120-square meter condo in Miami-Fort Lauderdale-Miami Beach cost $149,900 on average, according to the National Association of Realtors 2015 Profile of Home Buying Activity of International Clients. The price for the same condo in London ($960,840), Hong Kong ($776,280), and New York ($1.6 million) were at least five times higher.

Direct Flights
Miami International Airport (MIA) offers 150 direct flights, including 30 to South America. MIA has non-stop flights to three Venezuelan cities: Caracas, Barcelona, and Maracaibo. Fort Lauderdale- Hollywood International Airport (FLL) has 116 direct flights, including 50 international destinations.

In July 2015, direct service between Fort Lauderdale-Hollywood International Airport and Caracas, Venezuela, resumed thanks to a new flight from Dynamic International Airways. The Fort Lauderdale airport had not had regularly scheduled service to the Venezuelan capital since 2005, when American Airlines ended its service on that route.

Boosting the Market
Venezuelans are part of a significant number of South Florida international buyers who are increasingly purchasing property in South Florida. The foreign clients want to live, work, and play in our multicultural, multilingual region. The international buyers are not only paying more on average for properties, they tend to do it with all-cash.

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