Chavez is now controlling businesses and properties in Venezuela. The Chavez effect, which most are calling it has led the wealthier people of Venezuela to look for ways to protect their finances. The most common way to invest money is by investing in real estate. The Chavez effect has already created a huge affect on the Miami real estate market. Many Realtors have already said that their clientele is around 50% Venezuelan.
Many buyers are not only buying single family homes and oceanfront condominiums in Miami but they have begun building their lives here. Now buying businesses to better establish their lives in Miami other than their own country. This is not very surprising because real estate professionals already know that most of our business comes from foreign buyers such as those from South America and Canada. This has a lot to do with the price differences in our market compared to theirs. Miami condominiums are currently averaging at $400 per square foot and in places such as Canada and Argentina they are averaging about $1,000 per square foot.
The area that is mostly Miami luxury properties is the reason behind the increase in sales within the past couple of years. There has been a 36% increase in sales since 2011 on Miami Properties. This can be attributed to the difference between supply and demand. Preconstruction projects are selling as fast as 50% to 90% before the buildings even begin to be constructed.