In recent years, South Florida has emerged as a powerhouse in the global real estate market. The 2023 Profile of International Home Buyers of the MIAMI Association of Realtors (MIAMI) sheds light on this thriving market, revealing some remarkable statistics that highlight South Florida's prominence in the world of real estate. In this blog, we'll discuss the key findings from the report and discuss why South Florida remains America's number one international real estate market.
1. South Florida's Foreign Buyer Share Soars
One of the most significant findings in the MIAMI report is the remarkable increase in South Florida's foreign buyer share. In 2023, foreign buyer residential purchases accounted for 18% of total dollar closed sales in the region. This figure is nine times larger than the U.S. national average of 2% and more than double Florida's average of 6%. This substantial surge in foreign investment demonstrates the attractiveness of South Florida's real estate market to international buyers.
2. Miami's Global Sales Leadership
Miami, often referred to as the Magic City, continues to lead the world in real estate sales. In 2023, buyers from an astonishing 52 different countries purchased real estate in Miami, amounting to a staggering $5.1 billion in real estate transactions. MIAMI Chairman of the Board Ines Hegedus-Garcia attributes this success to Miami's unique blend of vibrant lifestyle, cultural diversity, innovative FinTech scene, modern architecture, eclectic shopping, proximity to Latin America, and iconic beaches. Miami truly embodies the spirit of possibility in every aspect.
3. A Shift in Foreign Homebuyer Trends
While the total volume of foreign buyer purchases in South Florida decreased from $6.8 billion in 2022 to $5.1 billion in 2023, this shift is attributed to a generational-high pent-up demand from a locked-out global buyer pool in 2022. This surge occurred because 2022 marked the first year after U.S. borders reopened following the pandemic, significantly impacting global real estate transactions.
4. Attraction of Domestic Buyers
South Florida is not only drawing the attention of international buyers but is also benefiting from a historic surge in domestic buyers, especially from high-taxed, high-density locations such as New York, California, and New Jersey. This trend further highlights South Florida's desirability as a real estate destination.
5. South Florida's Significant Share of International Sales
South Florida's dominance in international home sales is evident when considering that it secures approximately 11% of all international home sales in the entire United States annually. This statistic reaffirms the region's appeal on a global scale.
6. Miami-Dade County Leads the Way
Miami-Dade County stands out as the frontrunner, accounting for an impressive 72% of South Florida's foreign buyers. In 2023, Miami-Dade County saw foreign buyer sales totaling a staggering $3.67 billion. Broward County followed with $1.07 billion, and Palm Beach County had $270 million in foreign buyer transactions.
7. Top Foreign Buyers' Countries
Colombia emerged as the top foreign country purchasing real estate in South Florida in 2023, capturing a 15% share of the foreign buyer market. The top countries of origin for consumers purchasing properties in South Florida include Argentina (14%), Brazil (7%), Venezuela (6%), Canada (6%), and Mexico (5%). Colombia and Argentina alone account for 36% of all South Florida international closed sales.
8. Diverse International Market
South Florida boasts a diverse international market, with buyers hailing from 52 different countries. This diversity is a significant factor contributing to the region's consistently high global sales. When one foreign market declines, others step up to take its place, ensuring a continuous flow of international investment.
9. High Median Purchase Prices
Foreign homebuyers in South Florida tend to spend more on real estate than other buyers. In 2023, MIAMI international home buyers had a median purchase price of $482,700, compared to the U.S. national median of $455,200. Brazilian buyers topped the list with a median purchase price of $990,000, followed by buyers from Venezuela, Colombia, Canada, and Argentina.
10. Preferred Destination for Out-of-State Buyers
South Florida, particularly Miami, remains a top choice for out-of-state buyers. New York led the pack as the number one state purchasing in South Florida for the second consecutive year. New York alone accounted for 28% of out-of-state buyers in 2022. High-density, high-taxed locations have seen a surge in individuals and companies relocating to Miami in recent years, further fueling the real estate market's growth.
11. Cash Transactions and Condominium Preferences
Interestingly, about 69% of all international residential transactions in South Florida were made in all-cash, significantly higher than both the national (42%) and state (62%) figures. Additionally, 56% of South Florida international buyers prefer condominiums, a stark contrast to the U.S. average of 15%. Most global buyers in South Florida prefer central/urban areas for their purchases, often intending to use them as residential rentals, vacation homes, or both.
12. Visits Before Purchasing
About 73% of MIAMI foreign buyers visited Florida only two times or less before making their purchases. This statistic underscores the region's allure and the confidence international buyers have in South Florida's real estate market.
13. Strong International Clientele for MIAMI Members
A notable 49% of MIAMI members worked with international clients in the past 12 months, significantly higher than the national figure of 16%. This reflects MIAMI's commitment to increasing South Florida's real estate brand worldwide and positioning the Miami real estate market as a top international destination.
In conclusion, South Florida's real estate market continues to shine on the global stage. If you're a foreign investor seeking an exceptional business opportunity in South Florida, look no further. South Florida's thriving real estate market, diverse international clientele, and strategic location make it an ideal choice for those looking to start a business or purchase an existing operation in connection with your immigration goals. Whether you're considering real estate investments, entrepreneurship, or other ventures, we have the expertise and resources to assist you in navigating this dynamic market. Reach out to us today, and let's explore the exciting opportunities that South Florida has to offer.
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.
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