Miami has been for a long time an international destination, but it has not only been a vacationing spot, as foreign buyers look at Miami as a perfect paradise where to invest in real estate. With a more stable political and economic environment, cash-rich foreigners have seen Miami as the investment heaven. However, this year has come with more than one unexpected news and one of them is that Miami foreign homes have dropped in 2019 and now local buyers have stepped in the game and the city's residential prices have increased compared to 2018.
Even if there was a drop in foreign real estate investment, Miami remained strong compared to the rest of the country. In 2019 there was a homebuyer investment totaling $6.9 billion in South Florida, which was 21% down from 2018 with $8.7 billion. There was a strong dollar in 2019 which caused a decrease in the foreign real estate investment of 30% in Florida and 36% in the U.S.
Only in Miami (33%), Fort Lauderdale (16%), and West Palm Beach (12%), secures more than half of all the statewide foreign homebuyer market share, and Florida itself is the country's top destination for foreigners with 20% of the total sales. Those are no news, as it has been like that for over a decade.
In Miami-Dade, 77% of all the real estate investment in 2019 comes from foreign buyers, which shows an increase from 2018 when it was 65%. It is followed by Broward County with 19% and Palm Beach County with 1.8%. International buyers prefer to purchase condos by 55% which 73% use as both, rental investment and a second home.
The top 2 countries investing in South Florida real estate are Venezuela and Argentina which have 11% each, followed by Colombia with 10% and Brazil with 8%. In Miami the #1 foreign investor position goes to Venezuela with 17%, followed by Argentina with 15% and then Brazil with 11%. Miami also shows a higher median price for foreign investment of 375,600 compared to $288,600 in the rest of Florida and $280,600 nationwide.
Foreign investment in South Florida is 33.9% higher than the rest of the country and 63% of all foreign real estate investment was paid in cash, which is 22% less than local buyers.