Europeans Purchasing Real Estate Homes in MiamiSeptember 5, 2012
Due to the uncertainty in the Euro Zone, many European investors have been looking to put their funds into Miami real estate instead. Over the last 3-4 months, the real estate market has seen a massive growth in the number of investors from France and Italy, who are primarily snapping up properties in Miami Beach and Downtown.
Indeed, it’s believed that as many as 74% of real estate deals in these areas involve buyers with a permanent residence outside of the United States. The property inventory has reduced greatly, and many buyers are eager to make an offer on the few homes that become available.
Experts credit this to the instability and unrest being seen in the economies in Europe. Many Europeans are deciding to buy property in Miami because homes are still undervalued in the US, in comparison to similar properties that are located in Paris or London. Investors are able to get a lot more in Miami without having to pay nearly as much. The prices offered in Miami are considered bargains when compared to many other big cities in the world.
Generally, European buyers are the ones who are keeping the lavish end of the property market afloat. A lot of these investors are purchasing condos priced at over $1 million, and about 87% of them are all-cash transactions. Many of these Europeans are ready to spend $1,000 to $2,000 per square foot.
Aside from the Italians and the French, other nationalities showing interest in Miami real estate include the English, Russians, Germans, Spaniards, and Swiss. The multi-cultural atmosphere of Miami, and its warm weather, are believed to be the other factors attracting these buyers to the city.
These investors are purchasing real estate that they believe will grow in value, or at the very least maintain its value. Italians and Russians are often owner-users, while Swedish and German buyers prefer to purchase for multi-investment opportunities, so they look into fourplexes and duplexes. These different trends have brought up the prices of many different segments in the Miami property market.