Top 10 Countries Investing in Miami Real Estate
Feb 06, 2024 February 06, 2024
Thanks to its favorable tax rates, appealing climate, and impressive waterfront properties, Miami has always stood out as a highly sought-after destination for both luxury and affordable property. Transforming from its initial reliance on tourism and seasonal occupancy, the city has become a permanent hub for high-profile figures like Jeff Bezos and Ken Griffin with businesses and talented professionals following along in pursuit of growth and success.
This allure has not escaped the notice of foreign buyers, mostly from Latin America, who are attracted by the various Latin cultural crossovers and the city's melting pot, on top of its status as a crucial gateway to the US and Europe. All of this has made Miami a great place to invest in the eyes of national and international buyers alike.
Although total spending from foreign buyers has decreased from $6.8 billion in 2022 to $5.1 billion in 2023, Florida has maintained its status as the foremost choice throughout the United States, making up 23% of all foreign buyer transactions. Specifically, the Miami-Ft. Lauderdale-West Palm Beach metropolitan area stands out as the primary market for foreign buyers, drawing in 47% of all foreign buyers in the state from August 2022 to July 2023.
So, if you’re curious to know which are the top countries investing in Miami real estate, here’s the entire list and a few reasons why they’re so intrigued by Miami’s offerings.
Colombia 🇨🇴With 15% of the total number of foreign buyers in Miami real estate, Colombia sits on the podium as number one. Many Colombians have historically viewed Miami as an accessible dream location to move to due to factors such as the ease of travel from its two major cities, Medellin and Bogota, and economic stability on Miami’s shores compared to at home.
Among Colombia's middle-class and wealthy elite, Miami has established itself as a center of investment in residential real estate for those seeking to preserve their capital, especially with a currency as volatile as the Colombian peso—Colombia's peso devalued over 20% during 2022. One Colombian buyer splurged over $10 million on six condos at Cipriani Residences —one for each of his three children and three to rent.
Argentina 🇦🇷Argentina comes in just behind Colombia with 14% of the total share of foreign investment in Miami real estate and $366.8 million in purchases. Argentina has recently seen incredibly high interest rates, so Argentinians are seeking ways to diversify their assets and protect against the potential depreciation of their currency. But another driving force behind Argentina’s second place in this list comes from the arrival of one man to the city: Lionel Messi.
Even before the Argentinian World Cup winner moved to Inter Miami, he had invested in some reputable properties, including residences in the Porsche Design Tower and the Regalia, adding a house near Fort Lauderdale once his transfer was complete last year. His presence in the city has only added to its cultural allure for Argentinians and football fans worldwide.
Furthermore, Argentinians play a big role in Miami’s real estate not only as buyers but also as developers. The Melo Group, founded by Armando Ferreira de Melo in Buenos Aires, Argentina, has been operating under Dr. Jose Luis Ferreira de Melo’s leadership in South Florida for more than a decade, with projects as renowned as Aria on the Bay and the preconstruction Aria Reserve (the latter you can check out in our video interview with John Parisiani).
Brazil 🇧🇷Emerging as one of the fastest-growing immigrant communities in the city, Brazilians have seen a significant rise in their population in Miami. This surge has led to more and more Brazilian communities scattered across different neighborhoods, with notable concentrations in areas like Doral, Brickell, and Aventura within the greater Miami region.
We are also seeing plenty of private investment to facilitate Brazil’s burgeoning interest in Miami. A group of foreign investors in Miami real estate, led by a family office, are raising $30 million in funds to allow Brazilians to tap into the US real estate market in the Sun Belt. Additionally, in July 2023, Miami investment management company Leste Group joined forces with Brazil's Opportunity Fundo de Investimento Imobiliário to construct over 1,000 apartments in the coming years.
Canada 🇨🇦The first non-Latin country on this list, Canada has become one of the top countries investing in Miami real estate in recent years, and it also secured a spot as the second largest foreign investor in US real estate, just behind China. With 91% of buyers intending to use the property for rental or vacation purposes, it’s clear where the market lies. In some ways, this should come as no surprise. When temperatures begin to plummet north of the border, Miami’s warm weather becomes ever more appealing to Canadians desperate to escape the icy depths of winter.
Venezuela 🇻🇪From 2012 to 2015, those purchasing condos from Venezuela accounted for approximately a quarter of real estate transactions within the Latin American market in Miami. However, perhaps no country on this list of countries investing in Miami has dealt with more economic turmoil than Venezuela over the past few years. And while there has been some drop-off, Venezuelans still invest in Miami property with 6% of the total foreign share.
Although foreign nationals usually have no issues buying properties in Florida, one sticking point for Venezuelans could come from a recent law that was passed, which prohibits most citizens of China, Cuba, Iran, North Korea, Russia, Syria, and Venezuela from buying real estate close to a military compound or critical infrastructure. Given the dozens of military installations in Florida, Venezuelans may face an uphill battle moving forward. However, most real estate in coastal neighborhoods will not fall under this law.
Mexico 🇲🇽At the investment bank JPMorgan, wealth under management in Miami from Mexico clients alone increased by roughly 10% in 2023. This illustrates the waves that Mexicans are making in the city. Furthermore, Miami-based Eagle Property Capital Investments and Mexico City’s Promecap have successfully raised $309 million to construct multifamily properties. It almost goes without saying, but Mexico’s proximity to Miami is also a huge factor for Mexicans looking to enter the US real estate market.
Peru 🇵🇪Peru now represents 5% of Miami's real estate foreign buyers. The country was hit particularly hard by COVID-19, with over 6,000 deaths per million Peruvians. The turmoil that ensued has left many buyers looking to move permanently, unlike many other Latin American buyers who are more interested in Miami holiday or rental properties.
Ecuador 🇪🇨Ecuadorians' reasons for purchasing in Miami are very similar to other Latin American countries. They also tend to buy properties for seasonal stays or rental investment, with the ease of this type of transaction facilitated by their mutual use of the dollar.
Chile 🇨🇱Chile sits in ninth with 4% of the foreign investment share in Miami real estate. Chilean real estate investment is interesting in that the types of buyers are quite varied, with both individuals and large companies opting for various investment models. Many Chileans have been looking to diversify their portfolio and are pulled by the capital gain differential from their own country—it stands at 9.1% for Chilean real estate investments vs 18% in Miami.
France 🇫🇷French investment in Miami real estate is largely fueled by the appeal of condos close to the water or in gated communities, which is less attainable in France. While these properties are not cheap in Miami, they are less expensive along the French coastline or Riviera.
— From the World to Miami
Miami's real estate market has proven resilient and appealing, evolving from its tourism-dependent roots to attracting diverse global investors. Despite decreased total spending from foreign buyers, Miami remains the premier choice for international investors.
The breakdown of the top countries investing in Miami real estate, from Latin America to Europe, underscores the city's global appeal, driven by economic opportunities, cultural attraction, and even the presence of sporting icons like Lionel Messi. The convergence of favorable tax rates, a desirable climate, and outstanding properties ensures continued investment from the countries mentioned above and a bright future for Miami's real estate sector.
If you or anyone you know is interested in investing or moving to Miami, give us a call, text, or email and we’ll match you with the right local real estate expert. We are a multilingual team ready to guide you on the search for your next dream property!