Colombians will invest more in real estate in Miami in 2022 | El Nuevo Herald Elections and pandemic: Colombians will continue to dominate real estate investment in Miami

Real estate

Miami continues to be a magnet for international buyers, not only setting trends in real estate prices, but driving changes in the urban landscape. A look at the profile of downtown and other areas favored by foreign buyers reveals that buildings are increasingly tall, elegant and complex from an architectural point of view, associating themselves with luxury brands such as Waldorf Astoria, Porsche, Aston Martin, Baccarat and St. Regis.

For 13 years, Florida has been the favorite state for international buyers, and Miami-Dade has been the spoiled child of Latin Americans, who have been looking for the security of an investment in dollars, which allows them to have a place to stay in the city when they come to visit and that they rent when they return to their countries.

At the same time, as a trend that continues to gain strength, Colombians have become the foreigners who buy the most in Miami-Dade. They represent 15 percent of the market, according to the profile of international buyers collected in the report of the Miami Association of Realtors in 2021. This means a good advance in relation to the 9 percent of the market that they had in 2019.

“The flow of Colombian buyers remained, especially in the Brickell and Doral area, and the trend will continue in 2022 because South Florida, especially Miami, is becoming increasingly attractive for foreign buyers to buy and sell. move permanently, or invest in a second home, after going through a pandemic in Colombia,” said real estate executive Stephanie Shojaee, vice president and director of marketing for Shoma Group, which built numerous buildings in Doral, and is now developing Shoma Village in Hialeah, and Shoma Bay in North Bay Village.

Foreign buyers prefer neighborhoods like Weston, with well-rated public schools. The wealthiest shop in urban centers that often offer waterfront properties like downtown Miami, Edgewater, Brickell and Aventura, and in expensive residential neighborhoods like Golden Beach and Key Biscayne.

In Broward, the Colombians occupied second place last year, only ahead of the Argentines, who fell from the first position they occupied in Miami-Dade. In both counties, Venezuelans rank third, with 10 percent of the real estate market.

It is important to note that Argentines rank first among international buyers in South Florida.

luxury market

Felipe Olave, a Colombian engineer who lives in South Carolina, recently bought a 2,800-square-foot apartment at Waldorf Astoria, a residential and hotel project in downtown Miami, in which almost half of the buyers come from outside the United States. , mainly from Mexico, Russia, Colombia and Turkey.

“I just made my first payment,” Olave told el Nuevo Herald, explaining that he does not plan to rent his apartment but to use it every time he comes to the city because the building has all the comforts of a hotel, and at the same time he feels at ease. home because it really is.

"Miami has always surprised me, it is a city of immense possibilities," said Olave, who has his girlfriend in the city and comes frequently. His experience in the city dates back to the late 1990s when he worked here as a real estate agent.

“I hope the investment grows,” he said of his Waldorf Astoria apartment. “Many people from the United States and Europe see Miami as a destination.”

Daiana Quiceno, vice president of sales at Waldorf Astoria Residences Miami, says that luxury properties are attracting buyers the most right now.

“We have seen an internal migratory flow from different parts of the United States to Florida and particularly to Miami. It is determined by a market with high purchasing power that for different reasons, ranging from taxation to logistics, are choosing Miami as their new residence, turning our city into a cosmopolitan city and the focus of the entire world, said the executive.

Political uncertainty in Colombia attracts real estate investment in Miami

Colombians, historically, have been protagonists in real estate investments in Miami. From 2002 to 2007, it was perhaps the most prominent market for real estate investments, Quiceno said.

But the crisis that began in 2007 and the improvement of internal conditions in Colombia, changed the behavior of Colombians, who preferred to invest within their country.

“Starting in the years 2012-2013 we again saw a wave of buyers returning to Miami, although not at the same level as previous historical peaks. Today the situation began to change again for the benefit of investment in Miami,” said Quiceno, who was born in Miami and grew up in Colombia.

In addition to the global prominence of the Miami market, Colombian buyers invest in South Florida to protect their capital from sociopolitical uncertainty, a motivation they share with other Latin Americans.

"The political trends within Colombia, with a clear appearance of a leftist current with the possibility of reaching the government in the 2022 elections, influence the increase in Colombian buyers," said Quiceno, indicating that this year "that upward trend It will be consolidated."

The possibility of renting the property so that they do not support themselves and even generate profits is becoming more and more secure. Median rent in Miami increased 18 percent, from $1,750 to $2,070 for one-bedroom apartments, in the past 12 months, according to the Zumper National Rent Report for October 2021.

Foreign buyers drive trends in Miami

Some 63 percent of foreign buyers came with cash and bought more expensive properties, with an average price of $386,200, while locals bought properties for about $359,600, the report from the Miami Association of Realtors indicated.

61 percent of foreign buyers also preferred condominiums and are increasingly looking for larger properties.

Developers have listened to these preferences, such as Santiago Vanegas, president of Habitat Group, who in previous years opted to build smaller apartment buildings and studios in the West Brickell area, seeking to attract young buyers who "want connectivity, technology and access to the fun points,” he said in an interview with the Nuevo Herald in 2019.

“Right now, we are developing Smart Brickell, which has been very well received before and even more so after the pandemic,” Vanegas said of the change in course. “Our initial model was to offer smaller units in the first two towers, which are already sold out. As we enter Smart Brickell Tower 3, we are adapting to what buyers want and are able to offer a product that can be used for short-term rentals or permanent residences.”

The residential condos, which range from 553 square feet for one-bedrooms to 847 for two-bedrooms, as well as temporary housing units, can be rented year-round through Airbnb and other platforms.

Carolina Gerdts, executive vice president of RelatedISG International Realty, indicated that Colombian buyers are investing in larger properties lately with the vision that in the future it will become a permanent residence.

Tips for foreign buyers

Interviewed real estate agents and executives offered these recommendations for people who want to buy and invest in South Florida

▪ Buy from a reputable developer with a track record in this city.

▪ Make sure the area you are shopping in is suitable for your lifestyle, ie quiet, trendy, walkable, good schools for children.

▪ Consider the cost of maintenance, condo associations, taxes, and all necessary expenses, before diving into a Miami investment.

This story was originally published on January 27, 2022 4:42 pm.