It’s no secret that South Florida is the top choice for foreigners looking to purchase American real estate, but a new report shows just how popular the area is.
According to the MIAMI Association of Realtors, 18% of the homes sold in South Florida between August 2022 and July were purchased by foreign buyers, a figure that’s a whopping nine times greater than the U.S. average of 2% and three times higher than Florida‘s average of 6%.
In dollar terms, about 6,200 foreign purchases accounted for $5.1 billion of sales in South Florida, compared to $6.8 billion in 2022, while they comprised $53.3 billion nationwide, which was down from the previous year’s $59 billion.
International purchases of South Florida residential real estate declined from $6.8 billion to $5.1 billion. Courtesy of MIAMI Realtors.
Within South Florida, Miami-Dade County had the most sales by dollar volume, at $3.67 billion, followed by Broward County at $1.07 billion, Palm Beach County at $270 million and other counties at $60 million
By nationality, Colombians were the top foreign buyers of South Florida residential real estate, comprising 15% of buyers, followed by Argentina (14%), Brazil (7%), Venezuela (6%) and Canada (6%).
Condominiums are the preferred asset type for foreign buyers in South Florida, accounting for 56% of sales, compared to single-family homes at 21%, townhouses at 16% and residential land at 4%. By comparison, condos accounted for just 15% of U.S. home sales and 36% of Florida home sales.
The median foreign buyer in South Florida paid $482,7000, slightly higher than the median of $455,200 for all South Florida buyers. Among those foreign buyers, Brazilians spent the most on a per-property basis with a median purchase price of $990,000, followed by Venezuelans ($521,500), Colombians ($446,800), Canadians ($437,700) and Argentinians ($340,400).
Buyers from Colombia comprised the largest group of international purchasers of South Florida real estate. Courtesy of MIAMI Realtors.
Cash is king among South Florida foreign buyers, with 69% of their transactions being paid in cash, compared to 42% nationwide and 62% in Florida.
And, unsurprisingly, most properties purchased are slated for rental or vacation use, compared to 50% in the U.S. as a whole and 64% in Florida.
“Miami global sales continue to lead the world,” MIAMI Realtors Chairman Ines Hegedus-Garcia said in a press release. “An incredible 52 countries purchased real estate in Miami in 2023 … No other market can compare to those figures, and it’s because Miami is a unique blend of vibrant lifestyle, cultural diversity, innovative FinTech scene, modern architecture, eclectic shopping, our proximity to Latin America and iconic beaches — a city that truly embodies the spirit of possibility in every aspect.”
MIAMI Realtors compiled its report, the 2023 Profile of International Home Buyers of the MIAMI Association of Realtors, in collaboration with Florida REALTORS®. The findings were based on an online survey conducted Aug. 9 to Sept. 25. Approximately 60,000 members were solicited, and 2,277 responded.