If you are a faithful follower of this blog, you might know that the foreign investment in Real Estate in Miami is a hot topic. Did you know that the real estate industry is not only a haven for South American investors, but for the past few years, it has been expanding its target to European and Canadian investors?
Those are real news right? The National Association of Realtors (NAR) and to the Real Capital Analytics (NAR), lately announced the 2018 foreign purchase of South Florida for the commercial real estate by country, and guess what? Canada, France and Germany are topping the list!
Local commercial Real Estate seems to be really attractive to foreign northern investors, but what is happening on the residential market? Well, exactly the same! We can't lie, 46% of the foreign investment is still purchased by our southern neighbors. However, Canadians have been increasing their share. In 2017 they made up 19% of the pie. Europeans represented 18% of foreign purchases. The question is why? and the answer is simple. Better prices.
Condo prices in Toronto now reach an average of $972/sqft, and in Paris it has raised to $900/sqft. In Miami luxury condos average prices are around $848/sqft. Looks like a good deal right? But it isn't all about the price, Canadians are looking for an easy transaction, that lets them move in a hassel-free condo. That is what preconstruction investment offers in Miami. On the other hand, it is the modern Miami lifestyle that appeals to Europeans. But who wouldn't? There is great weather all year round, the food scene is excellent and the education (which is primordial for them) has international programs adapted to their needs.