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.
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