Luxury residential developments have been sprouting like wildfire across South Florida with over 100 projects in development. In an Associate Press piece centered around the local community not benefiting from the predominantly cash investment, we learn over $6 billion was spent by foreigners last year.
Last year, foreigners spent $6.1 billion on Miami-area real estate — 36 percent of all such investment, according to the Miami Association of Realtors. Nationally, foreigners account for just 8 percent of sales. That 28-percent difference in foreign investment locally versus the national average is jarring but not surprising. However, it appears very likely the amount of foreign cash invested in Miami real estate will dip this year as the value of foreign currency tumbles, with 80 percent of luxury condo purchases made by foreign buyers, notes Related Group Chairman Jorge Perez.
As for how Miami's boom can help the people that call South Florida home year round, building towers and developments more affordable to local renters and buyers would be a nice start. That luxury condo market is plump enough.