54 | FLORIDA BUYER MARKET
foreigners in the state were condos, up from 2010’s 37%. By contrast the percentage buying detached single- family homes decreased from 51% to 39% by 2011. 8% bought a townhouse last year and nobody at all bought a timeshare property.
Where are they buying? Miami is by far and away the most popular destination for foreign buyers, with 30% of all overseas Florida sales taking place in the Miami - Fort Lauderdale - Miami Beach area. It’s nearest competitor, the Orlando - Kissimmee area, recorded less than
“Canadian buyers don’t want to live in Florida, they want a cash-fl ow positive investment”
half of that share, taking 14% of the interntional market. Tampa - St. Petersburg - Clearwater completes the top three with an 11% share of international purchases in Florida. Miami’s dominance is undisputed,
says Angulo. “Miami has been number one in terms of sales this year.” Indeed, the Miami Association of Realtors recently announced a record-breaking year for sales. Prices per square foot (in Miami) are up, luxury sales are up, and we are also seeing sharp increases in the number of second home buyers.” Also, Angulo adds, the historically low prices have seen a high “number of renters converting into home buyers, meaning that Florida is currently “on the verge of becoming a more stable market again”. Venezuelan buyers are particularly active in the Miami market, Angulo told OPP. “Miami centre is very popular [with Venezuelans]. Indeed, in some areas, Venezuelans have been buying for so long that we are seeing whole communities spring up.”
The history of real estate buying in Miami by Venezuelan investors is a mature one, and Angulo believes that many are now looking for alternatives away from traditional investments. “Venezuelans have been buying into the Florida residential real estate market for so long now that some are looking at other options, and commercial real estate is a big part of that.” Additionally, he says, there is also increasing investment in the Orlando
REPORT
area from more established buying markets. “There is a lot of overseas investment in Orlando. This is mainly coming from the German, UK and Canadian markets.”
Why are they buying? The NAR’s research found that over half (57%) of respondents found increased buyer interest since the global recession, while only 22% reported a decrease. “When measured in terms of physical amenities and building layout, US housing options appear to be signifi cantly less expensive than physically comparable foreign properties,” the report says. “There is a lot of value in US housing if one fi nds the lifestyle, location, culture and property options attractive.” “The value of the dollar versus a
prospective buyer’s respective home country currency contributes to the buying decision in considering international real estate,” says the NAR. 93% of the survey’s respondents said that the US Dollar’s value in relation to foreign currencies had a major impact on the decision to buy. And, away from currency and economic fl uctuations, international buyers are also attracted by the climate. According to the realtors surveyed, 60% of international clients are infl uenced most by a desirable location, with the idea of a Florida property being a profi table (23%) or secure (12%) investment lagging way behind. The relative strength of foreign currencies against the dollar making for a good investment is particularly salient for Canadians, according to Colordarcy’s Loxley McKenzie. “The typical Canadian investor
that approaches our company is not looking to live in Florida, they are looking to take advantage of one of the great opportunities available today,” McKenzie told OPP. “They want a cash-fl ow positive
investment in a market in which they feel comfortable investing.” “The number of our Canadian
investors in Florida increased in 2011 by 80%, and we are very confident that growth will continue because although we see indicators and statistics which show that the Florida market is stabilising, it will be a slow recovery.”
www.opp.org.uk | FEBRUARY 2012
How did your most recent international client contact you?
Source: NAR Country of Origin - Most Recent Client
Source: NAR Impact of Recession on Buyer Interest
Source: NAR
How has the percentage of your clients who are international changed in the past year?
Source: NAR
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