Miami Real Estate Market: Insights on Latin American Buyers and Trends

Miami Real Estate Faces Tough Times as Venezuelans Look to Settle Permanently

The real estate sector in Miami is currently going through its toughest period in the last decade, even worse than during the Covid crisis in 2021. Interestingly, it is Venezuelans who are looking to settle permanently in the town in southern Florida, despite Colombians, Argentines, and Brazilians traditionally accounting for a significant portion of home purchases in Miami.

According to a report from the Miami Association of Realtors, 71% of new property owners in Miami are buying with the intention of renting it out or using it as a vacation home. However, the trend among Colombian buyers is quite different, with only 10% planning to use their Miami property as their main residence. On the other hand, 49% of Venezuelans buying property in Miami are dreaming of making the city their permanent home.

In 2019, Venezuelans were the largest foreign homebuyers in Miami, but they have since dropped to fourth place in the rankings. Colombians, Argentines, Brazilians, and Mexicans now make up the majority of Latin American investors in the city. Brazilians are leading the pack in terms of spending, with an average purchase price of almost one million dollars.

Despite there being 6,200 property sales to foreigners in Miami last year, the sector is still experiencing a significant decline in transactions compared to previous years. Fort Lauderdale and West Palm Beach are the preferred locations for Latin American buyers in Miami, with most investors choosing these areas for property purchases.

It seems that the profile of investors in Miami is unlikely to change significantly, with Colombians still showing the most interest in purchasing real estate in the city. However, other Latin American countries like Costa Rica, the Dominican Republic, and Panama are also beginning to make their mark in the Miami real estate market.