Colombians Up Their Game in Miami’s Residential Market

Colombia has officially replaced Brazil as the top international country searching for South Florida real estate.

Brazil, which continues to be Latin America’s largest economy despite its worst recession in recent history and a deepening political crisis, led the ranking for 13 consecutive months through June 2015, but has since fluctuated, going from No. 1 to No. 2 and most recently, coming in at fifth place.

At the top of the Miami Association of Realtors’ ranking stands Colombia, which in April registered the most global searches for South Florida properties through the industry group’s portal (www.miamire.com) for the fifth consecutive month, according to new data.

“Colombians see U.S. real estate as a good place to put their money,” Vilma López of Realty Blueprint in Weston, Fla., said, noting that Miami is conveniently just a three-hour flight away from Bogota.

Colombians are not only searching for homes, but purchasing. They tie with Argentinians as the third largest group of foreign homebuyers in Miami, according to the local real estate association. And Colombia accounts for 10% of all foreign South Florida transactions, according to the most recent survey by the Miami and the National Association of Realtors.

Foreign clients bought approximately 10,600 properties in the area—worth $6.1 billion—between September 2014 and August 2015, according to the same report.

Venezuela continues to be the number one source of international activity, with 13%, and Brazil, while registering fewer searches, still buys more Florida real estate than Colombia, with 12%.

MORE:Five Things Foreign Buyers Should Know About Buying in the U.S.

Domestic Economy Empowers Colombians

Christopher Zoller, an associate with EWM International Realty in Coral Gables, has been working with Colombian clients for almost 15 years. A young couple, whom he helped find a rental property and later their first home in Florida, kept referring him relatives, friends and coworkers, he said.

He attributes Colombians’ increasing purchasing activity to their country’s robust economy. Colombia saw its gross domestic product grow 6.4% in the first quarter compared with a year earlier, above economists’ expectations.

Financial instability in Latin America was cited by 92% of real estate professionals as having a significant impact in the Miami-Dade residential market, according to a recently released surveyin the Miami Herald.

Zoller described Colombians as “savvy buyers” who are educating themselves on the South Florida market. “They do their homework first and then make purchases,” he said. The South American group buys across all areas and property types, from a condo in Brickell to a house in Coral Gables, Mr. Zoller said.

According to the Miami Association of Realtors, Colombians spend the second-most on South Florida property among foreign buyers: $516,000 on average—tying with Argentinians—and second only to Brazilians—who spend $766,000 on average.

Miami Comes to Colombia

Acknowledging Colombians’ increasing interest, the Miami association plans to attend a real estate expo in Bogota for the first time this year.

About 20 members will arrive in the capital city for the IX Gran Salón Inmobiliario, a four-day event to take place in late August, in an effort to promote Miami’s lifestyle, including its warm weather, arts and entertainment, sporting activities, shopping and worldwide cuisine, said Lynda Fernández, senior vice president of public relations at the Miami association.

MORE:Miami Agents See Less Activity from Foreign Homebuyers

Fernández also highlighted Miami’s residential affordability when compared to other global cities such as London, Paris or New York.

According to Knight Frank’s Wealth Report 2016, while a $1 million will buy 22 square meters (237 square feet) in London, the same amount will nab 77 square meters (almost 830 square feet) in Miami.

Eyes Point South

Source: Miami Association of Realtors