Latino buyers dominate Miami's foreign real estate market, leading country rankings

Latin American countries accounted for approximately 60 percent of foreign real estate buyers in Miami, according to a recent study conducted by the MIAMI Association of Realtors.

The findings showed Colombia topping the list, with 14.7% of purchases made by foreign buyers in Miami between August 2022 and July 2023.

The country was closely followed by Argentina, whose nationals accounted 13.7% of all purchases. Brazil and Venezuela followed suit with 6.7% and 6.4%, respectively.

Canadians were the first country from outside Latin America, completing the top five with 6% of the total. Mexicans (5%), Peruvians (5%), Ecuadorians (5%), Chileans (4%), and French (3%) comprised the rest of the top ten.

The study also ranked countries based on the overall amount of sales. There, the list was different: Brazil topped the ranking with a median purchase price of $990,000, significantly higher than its South American counterparts. Venezuelans destined a median of $521,500; the figure being $446,800 for Colombians.

The report highlighted that the majority of buyers from Latin America intended to use the house for rental purposes or as a vacation home, with the exception of Venezuelans, 49% of whom sought of making it their primary residence.

In comparison, only 13% of Brazilian buyers made the purchases with that purpose, the figure being 10% for Colombians, 8% for Argentinians, and 5% for Canadians.

Most Brazilians (57%) said they would use the property solely for vacations, while the majority of Argentinians (68%) and Colombians (54%) intended to use it for rental purposes only.

Florida's real estate sector stands out as the most appealing destination in the United States for international buyers, accounting for 23% of foreign buyer transactions in the country.

Within the state, the Miami-Ft. Lauderdale-West Palm Beach metro area is the largest foreign buyer market, attracting 47% of Florida's foreign buyers.

During the August 2022— July 2023 period, foreign buyers purchased $5.1 billion of single-family homes, townhomes, and condominiums in 6,200 transactions through Miami realtors. Foreign buyers accounted for 18% of MIAMI members' total sales volume compared to 2% nationally and 6% in Florida.

The figure marked a sharp 30% decrease from the $6.8 billion recorded in 2022 and mirrored that of 2021, when the economic fallout from the Covid-19 pandemic lingered.