Miami Real Estate Lawyers Explain Foreign Investors
Despite being one the hardest hit markets when the real estate bubble burst in 2008, Miami has become the hottest real estate market in the United States, according to the National Law Review, a publication relied upon by Miami real estate lawyers for information on legal issues and latest trends. The primary reason for the tremendously positive rebound is the significant influx of foreign investment dollars into the Miami real estate market, according to the Miami Downtown Development Authority.
Although foreign investment in real estate is strong throughout all of Miami- Dade County, in the downtown area alone 90 percent of all new construction is associated with foreign investors, according to Reuters. In addition, a high percentage of existing real estate sales involve purchases made by foreign investors. (These trends have kept many a Miami Beach real estate attorney busy working on these types of transactions.)
Types of Real Estate Being Purchased by Foreign Nationals
The vast majority of real estate being purchased by foreign nationals in the Miami market are luxury residential properties. Moreover, the majority of these luxury properties are multi-family dwellings like apartments and condominiums. According to the Miami Downtown Redevelopment Authority, only 11 percent of these properties are being purchased by foreign nationals to be used as their own residences. These foreign individuals and companies are purchasing high-end real estate in the greater Miami area for investment purposes often renting the units.
In addition to luxury residential investments, foreign nationals are also investing in hotels, resorts and other types of commercial properties. However, the percentage of foreign ownership is not as high in these areas as it is with high-end residential properties.
Reasons Foreign Nationals are Drawn to the Miami Market
The motivation behind the high rate of investment in the Miami market by foreign investors is based to a significant degree on their nationality, according to Miami foreign investment lawyers that represent these types of clients. For example, a primary reason investors from Central and South America are so active in the Miami market is because of the large number of people from these regions that already reside in the area. These investors have enjoyed success with their investment in Miami real estate and have shared that message at home. Indeed, there is a large number of wealthy Central and South American nationals who reside in Miami during a part of the year, making additional and even substantial investments in the area a natural endeavor for them.
In addition to Central and South American investors, the Chinese are active in the Miami real estate market. Chinese investors are flocking to the Miami region because of the vitality of the market at this time and because of the severe limitations in real estate investment that exist in their homeland. For example, a Chinese national can own no more than one residential property, even if he or she desires to purchase additional properties in that country.