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How Latin Americans Helped Miami’s Real Estate Market

November 28th, 2012 Written By Carol Pawley

Latin American buyers have helped saved Miami’s real estate market. Brokers across South Florida link Latin Americans, especially Brazilians, paying cash for perceived condo bargains as the single biggest driver of the market.  35% of all foreign buyers in Florida have come from Latin American countries in 2012.

Michael Sadov, director of sales at Canyon Ranch Living Miami Beach, said, “I think they’ve kept our entire real estate market alive. “If we didn’t have the South American influx, I do not believe you’d see the absorption of the real estate that happened. I think they were monumental for us.”

Latin Americans represent a great amount of the $10.7 billion foreign buyers brought in Florida sales from 2011-2012 and the greater part of buyers in the condo market in Miami are from Latin America.

“They came in with a lot of buying power, and we’re basically pretty inexpensive compared to major markets in Europe or even in Brazil,” said Nathan Zeder of Esslinger-Wooten-Maxwell’s Zeder Team in Coral Gables. “Consequently, with their strong currencies and much lower prices, they were able to absorb the inventory inexpensively. Compared to beachfront condos in places like Rio de Janeiro, Miami represented a relative bargain”, he said. “From my understanding, the good areas in Brazil are in excess demand, and they’re probably $2,000 to 3,000 a square foot for the really high-end areas,” Zeder said. “The best areas in Miami were [in 2010 and 2011] around $1,000. They’ve gotten higher, but at the bottom of the market, you could pick up fantastic units and you’d be paying under $500 a foot.” You’re seeing Brickell preconstruction projects being sold out, and it’s all South Americans,” Zeder said. “It’s all cash. “It’s a great indicator that foreign buyers are driving this whole new wave of construction — without foreign buyers, I don’t think we would have 12 towers under construction,” said Zeder.

The Latin American buyers are so affluent, with cash in hand. They are mainly looking for either a second (third or fourth) homes or investment properties.

Canada was the second largest demographic.

Throughout the years I have helped many friends and clients purchase or sell property in Miami .  If you are interested in purchasing or selling a home, please contact me as I can give some first-hand sound advice with no pressure.  Please send me an email at carolapawley@gmail.com or call me at 305-992-6188. 
 
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