Our latest Market in Minutes 'Miami Prime Residential Markets' discovers why Miami is proving popular with international buyers. Download here.
International buyers
Sales of homes to international buyers in the US was estimated at $68.2 billion in the year to March 2013, or approximately 6.3% of total US home sales. The state of Florida accounts for the largest proportion of overseas buyers of any state in the US. Approximately 19% of home sales by value were to non-resident international buyers.
Over half of Miami’s population is from Latin America, a group which represent 70% of all overseas purchasers. Buyers from South America view Miami as a home from home and a stepping stone into the rest of the United States. There is a large Latin American Diaspora in Miami: top countries of origin are Venezuela, Brazil and Argentina, accounting for 16%, 15% and 14% of international buyers respectively across the whole market. Buyers from Europe, notably the United Kingdom, are also present in the upper tiers.
A new wave of domestic buyers are also present, mobilised by a recovering US economy. Many hail from New York, a city of extremely constrained supply, and like Miami, a major financial centre.
Buyer motivations
Of those investing in US residential real estate from abroad, some 39% cite the strategic importance of US as a location as their primary motivation, while 22% cite the United States’ safe haven credentials as their main influence. A weakened US dollar poses many international buyers with a currency advantage.
Many factors make Miami the US destination of choice for international buyers. The city has excellent global connections: It is home to the second largest airport in the US measured by international arrivals. Miami is a centre for business and pleasure: a popular tourist destination, it enjoys a year-round tropical climate and boasts high quality beaches, but is also a major centre of international finance. The city’s residential stock is also of the type favoured by additional home buyers: a managed condominium product offers security of title and hassle-free ownership.
Miami on a world stage
Miami is a city of worldwide economic and cultural significance, an important centre of finance and trade, so can position itself alongside the top tier of World Cities. Table 2 sets average prime residential prices alongside global contemporaries against which Miami residential real estate would appear to offer good value for money. Miami’s prime residential values are 13% below the average of prices in the top tier of US cities, and 54% below those in our class of ten World Cities.
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