In 2023, Miami has established itself as America’s top real estate market, and the Sunshine State is particularly popular among foreign buyers.
One in five international real estate sales in the United States takes place in Florida, and of those, one in two is in the Miami metropolitan area. In 2023, $5.1 billion Homes worth a total have been sold to international buyers in South Florida, according to a report from Miami Realtors.
The state as a whole has brought $12.6 billion in real estate transactions with foreign buyers, according to another report from Florida Realtors.
With the focus on Miami, buyers were willing to pay premium prices and, sometimes, had spent virtually no time in Florida before. This year, 73% of foreign buyers had visited Florida two or fewer times before purchasing a property and 6% had never been to the state, the Miami Realtors report found.
In recent years, Florida has attracted the attention of Russia and South American countries. This year, Florida has attracted attention from other parts of the globe.
“Miami has always been international,” said Michael Martirena, a luxury real estate agent with Compass. “But Miami continues to grow and blows people away with how quickly it’s growing. It’s becoming a much more sophisticated city: the lifestyle, the finances, the technology hub, the shopping.
Even though Germany doesn’t lead other regions in terms of number of purchases, buyers nationwide have shown new interest in the Sunshine State. Germany had the highest number of web searches for South Florida real estate in both countries. September and October.
Meanwhile, interest from other countries has waned. Although China has the highest number of web searches for Miami homes in the beginning of the yearChinese buyers ultimately represented only 2% of buyers in Florida.
However, China was the top country of origin for international buyers in the rest of the United States, spending $13.6 billion out of a total foreign investment of $53.3 billion, according to the National Association of Realtors.
Here are some of the top countries whose investors are buying properties in Florida, according to data from Florida and Miami Realtors:
Canada
Canadians represent 18% of international buyers in Florida. This is a decrease from previous years, when Canadians represented up to 25% of the market.
Yet Canadians are the most likely to purchase vacation nests, with more than half of purchases being second homes. Additionally, 81% of purchases made by Canadians are made entirely in cash.
In total, Canadians spent more than $2 billion on real estate in Florida in 2023.
Colombia
Colombian buyers come in second place, but with almost half as many purchases as Canadians. Investors from the country represent 10% of the market, but are among the main foreign buyers to rent out their purchases.
Nearly 50% of homes purchased by Colombian buyers are intended to generate rental income. Colombian buyers also accounted for 19% of international purchases in Broward County.
Filippo Incorvaia, a Miami agent and founder of FI Real Estate, said Colombians typically buy in gated communities and invest differently than European buyers because of political tensions in their country.
“Colombians are looking to invest their money to protect themselves and feel safer in their environment,” Incorvaia said.
Brazil
Brazilian spending remained stable compared to previous years, accounting for 7% of all foreign purchases in Florida.
However, Brazil is the top country of origin for buyers (18%) in Palm Beach County, where the average home sales price has climbed to 20 million dollars.
Although Brazilians bought less real estate than Colombians, they spent more. Real estate purchases by Brazilian buyers totaled nearly $1.5 billion, while those by Colombians reached just under $1 billion.
Argentina
Argentine buyers also account for 7% of international purchases, but the vast majority (91%) are all-cash transactions. This exceeds Canada’s 81% and the United Kingdom’s 70%.
Buyers nationwide also strongly favor purchasing condos, with nearly 70% of residential purchases going toward the property type.
More than investors from any other country, Argentine buyers do not live in these homes. Nearly 70% of purchases are intended for rental income.
United Kingdom
Florida real estate agents are increasingly noticing the presence of European buyers, from London and Paris to Munich and Madrid.
Although Latin American property buyers are still significant, 4% of buyers came from the UK in 2023.
Like Canadians, Brits primarily purchase vacation homes, with 43% of homes purchased intended to be used as a second home. Unlike other buyers, British investors favored single-family homes, with almost 60% of purchases going towards this type of property.
