In the real estate arena of 2023, Miami solidified its reign as the premier market in the United States, particularly drawing attention from foreign buyers in the Sunshine State. A remarkable one in five international home sales across the U.S. occurred in Florida, and a staggering half of those transactions took place in the bustling Miami metro market. According to a report from Miami Realtors, the year 2023 witnessed a robust $5.1 billion in home sales to international buyers in South Florida.
The state of Florida, as a whole, registered a substantial $12.6 billion in real estate transactions involving foreign buyers, as outlined in a comprehensive report by Florida Realtors. The allure of Miami, characterized by a dynamic lifestyle, robust financial opportunities, burgeoning tech hubs, and upscale shopping, prompted buyers to shell out high prices, with some having minimal prior exposure to the state.
Surprisingly, 73% of foreign buyers in 2023 had visited Florida only twice or even less before making property purchases. Astonishingly, 6% of these buyers had never set foot in the state, underscoring the magnetic pull of Miami’s real estate market.
Traditionally a magnet for Russian and South American investors, Florida broadened its international appeal in 2023, capturing the interest of a more diverse global audience. Michael Martirena, a luxury real estate agent with Compass, emphasized Miami’s continuous evolution into a more sophisticated city across various facets, from lifestyle to finance, technology, and shopping.
While Germany didn’t lead in terms of purchase volume, it emerged as a noteworthy player, topping global web searches for South Florida real estate in both September and October. This shift marked a departure from the spotlight traditionally held by countries like China.
China, despite initially dominating global web searches for Miami homes, saw a decline in its influence, constituting only 2% of Florida buyers by the end of the year. However, on a national scale, China remained the top country of origin for international buyers in the U.S., contributing $13.6 billion out of a total foreign investment of $53.3 billion, as reported by the National Association of Realtors.
Delving into the specifics, here are some key international players in Florida’s real estate market, based on data from Florida and Miami Realtors:
Canada: Despite a slight dip from previous years, Canadians still represent 18% of international buyers in Florida, spending over $2 billion in 2023. Their preference for second homes is evident, with more than half of purchases falling into this category, and a noteworthy 81% of transactions are all-cash.
Colombia: Colombian buyers secured the second spot with 10% market share, showcasing a preference for rental income. Nearly 50% of homes purchased by Colombians are intended for leasing, and they constitute 19% of international buyers in Broward County.
Brazil: Holding steady at 7% of all foreign purchases, Brazil takes the lead in Palm Beach County, where the average home sale price has soared to $20 million. Brazilians, while making fewer purchases than Colombians, outspent them, with total real estate acquisitions nearing $1.5 billion.
Argentina: Argentinian buyers, constituting 7% of international purchases, stand out with an impressive 91% preference for all-cash deals. Condos are the property of choice, representing almost 70% of residential purchases, with nearly 70% of these acquisitions earmarked for rental income.
United Kingdom: A rising presence in the Florida real estate scene, the United Kingdom contributed 4% of buyers in 2023. UK investors, akin to Canadians, favor vacation homes, with 43% of purchases intended for secondary use. Notably, nearly 60% of acquisitions by UK buyers are single-family homes.
