Venezuelan Investors Find Interest In Southern Florida

It’s no secret that there has been a significant rise in Florida real estate.  We partly have foreign investors to thank for this rise.  Latin Americans have been taking it upon themselves to invest in a variety of Florida properties.  According to the Miami Association of Realtors,  it is Venezuelans who are leading the international investors, closely running with those from Argentina and Brazil. 

So, why is Venezuela investing in our market?

Well, part if it has to do with the amazing deals that can be found in Florida.  Many of the investors are coming over and paying cash for their investment.  These wealthy investors find what they perceive to be a “great deal”, and don’t hesitate in placing their money into some American real estate.  

Cleto Puzzi called it the “Chavez effect”, implying the Venezuelan president Hugo Chavez is to blame.  Puzzi states that “you cannot invest in Venezuala these days”.  Evidently the investment opportunities in Venezuela are scarce, and the wealthy must go north in order to make their money grow.

This international investment growth has helped out the Florida market immensely.  It enabled many real estate developers to develop more properties.  Florida is named the top real estate opportunity for foreign investors- southern Florida being specifically in the lead. 

Although many of the investments are currently residential; there is no limit to what could be done commercially.  Historically, an increase in residential sales often leads to an increase in commercial sales.   The rapid rise of the residential international investments could be a direct link to the rapid rise in commercial real estate investments.

This trend of investment will hopefully expand.  Although the majority is lead by Latin America, some are expecting for European investors to make their way to southern Florida.  As long as the deals are present, so will the international investors.

Will 2012 Be The Turnaround We Have Been Waiting For?

The commercial real estate market for Southern Florida is definitely on the up and rising list.  If you compare southern Florida to some of the nearby real estate markets you will noticed the discrepancies are in Florida’s favor.  Even though southern Florida is still feeling the same recession the rest of the country is facing, they seem to be turning their luck around. 

In reference to a survey that was taken recently, there are two cities that are really starting to rise; Fort Lauderdale and Miami.  Even though there is still plenty of unattended real estate in these locations, they are still looking to take part in expansion. This is a bold move to take in a suffering economy. 

Evidently it is the office real estate that is just now hitting the recovery phase.  In the past, most investors and advisors were interested in making an investment in condos, apartments, and houses, however these days the money may be into office buildings and warehouses.  People are looking into warehouses that are directly near the shore.  The main reason for this is to be able to capitalize on being near ports for importing and exporting goods into the state.  

Even though investors seemingly are interested in the rising potential of office buildings condo financing seems to be rising.  According to a report done on the first quarter of 2012, the Miami Herald stated that “closings on construction financing, including a major development on Brickell Key ($140 million line of credit), has been increasing.”  The potential funding of new development hasn’t been talked about since the recession hit. 

The aspiring market rise is not going to come overnight.  It’s important to note southern Florida got into this real estate downfall due to an overpopulation of condos and residential homes.  The foreclosures allowed for investors to rush in, and deplete the market value of southern Florida homes.  Perhaps the key for this to succeed is to focus less on residential, and more on commercial.