By Sunny Isles Real Estate Expert on November 1st, 2012
The reelection of President Hugo Chavez in October of 2012 may serve to boost Miami real estate sales as well as sales in South Florida. Miami and the rest of the South Florida area have always been close enough to benefit from a lot of business from the Caribbean, South America, and other destinations to the south of the US. The proximity of Florida to Venezuela and the fact that Venezuelan investors already have a good presence in the condo market in South Florida may mean that further economic benefits are ahead.
Venezuelans Love To Buy Miami Condos
Currently, over $60 million a month comes into the Florida real estate market from Venezuelan investors. There are currently approximately 200,000 Venezuelans living in the United States. Among those Venezuelans, it is commonly held that the reelection of Hugo Chavez is very likely to bring more Venezuelan money into the US.
Approximately 44 percent of the investment in the Miami real estate market from Venezuela goes into condominiums. Single-family homes are the next biggest category, but only account for approximately half as much as do condominiums.
Miami-Dade County has benefited more than any other part of Florida from Venezuelan investment. Well over 60 percent of the investments in Florida real estate have been made in the Miami-Dade County area. The vast majority of these investments have been made in urban properties.
Why Do Venezuelans Leave
Part of the reason that so many people are expected to leave Venezuela simply has to do with the conditions in the country. Venezuela’s economy has not done well in recent years and the country is notorious for having lacking services and significant amounts of violence. Because Florida is so close and Miami-Dade County is the closest large urban center in the US, many of the Venezuelans leaving their home nation naturally end up looking in this real estate market.
Foreign Investments Into Miami
The real estate market in Miami-Dade County, particularly in the condominium sector of the market, has been improving significantly. Already, there are more than 10,000 new units proposed in the area. In addition to that, more than 70 new towers have been proposed.
The Miami condo markets
have benefited tremendously from all of this interest and from a great deal of foreign investment. The South Florida condominium market is by no means flooded with properties, which some people may still think is the case, and over 90 percent of all the new construction in the condominium market that was created during the previous boom has been bought up.
With an improving economy and more foreign investment pouring in, the reelection of Hugo Chavez will actually contribute further to a very active condominium market that is already doing quite well. Because this investment has been concentrated in the cities, it’s likely that the popular condominium towers will continue to attract new investment and that enough construction will be going on to satisfy any future demand. The Realtors Report estimates that $11 billion each year in real estate is acquired by foreign investors in Florida. They continue to play a big role in this real estate market and are likely to play a bigger role in the future.