Good News! International Buyers are Back
Stifled by COVID-19 the past couple of years, global buyers are finally seeing restrictions lifted and opportunities in U.S. properties.
For decades, Florida has been a preferred U.S. market for foreign real estate buyers seeking a vacation home, primary residence or an income-generating commercial investment. But the travel restrictions imposed in spring 2020 by the COVID-19 pandemic dramatically slowed global purchases.
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Two years later, international buyers are returning to Florida, creating new business opportunities for real estate professionals with well-planned marketing programs. “The pandemic reinforced Florida’s global appeal in terms of the lifestyle, weather, accessibility and affordability,” says Francisco Angulo, vice president, global development–Latin America, Caribbean & Canada for Realogy in Miami. “Now, international buyers who are vaccinated and boosted feel safe traveling to Florida and are moving ahead with their lives.”
The good and the hesitant
Some of Florida’s traditional global markets are expected to see a bigger rebound than others this year. For instance, Canadian snowbirds are traveling again to Florida, and buyers from Latin America and the Caribbean are active throughout the state. On the other hand, there may be fewer buyers from China or the European nations that imposed travel bans and lockdowns in late 2021 due to the omicron variant.
“Peru and Ecuador are good targets for our state’s real estate professionals,” says Betzy Rivera, a sales associate with RE/MAX Prestige Realty in Loxahatchee and the National Association of Realtors® (NAR) ambassador to those countries. “We are definitely seeing more investors from South America as a region.”
According to the 2021 Profile of International Residential Transactions in Florida, Latin American/Caribbean buyers made up 46% of the global market followed by Canadians at 18% and Europeans at 15%. The top countries of origin last year were Canada (18%), Colombia (9%), Argentina (7%), Brazil (6%) and Venezuela (5%).
“Countries with good relations and economic ties with America are the best targets for real estate professionals,” says Julie Yo, a broker-associate with RE/MAX Capital Realty in Tampa and 2021 president of the Greater Tampa Bay chapter of the Asian Real Estate Association of America (AREEA). “Find a country or countries and start building connections to reach prospective international investors.”
Who’s going where?
While South and Central Florida remained the most popular inbound markets, international buyers are now active throughout the state, from the Panhandle and Jacksonville to the Treasure Coast and the Florida Keys.
In Tampa Bay, new residential and commercial developments are attracting international buyers and investors, says Yo. “I would like to bring Asian/Korean investors to Tampa Bay, but now there is more interest from Germany and the U.K. because we have direct flights from Tampa International.”
In Central Florida, the incoming stream of buyers from the U.K. is picking up again, says Barbara Ashley-Jones, a sales associate with Premier Sotheby’s International Realty in Winter Park. “The Orlando area is also attracting Brazilians looking for vacation homes, and Colombians buying single-family homes. On the other hand, German buyers are heading to Sarasota and Southwest Florida.”
Miami and Fort Lauderdale continue to be primary or second-home destinations for buyers from Latin America, says Angulo. “This year, we expect strong interest from Argentina, Colombia, Brazil, Chile, Venezuela and Mexico,” he adds. “Many want to move some of their assets to the U.S., and Florida is a natural choice for residential and commercial properties.”
In Palm Beach County, international buyers are coming from Canada, Brazil, Argentina and Colombia, says Carlos Alleyne, a sales associate with RE/MAX Advantage Plus in Delray Beach. “They are looking at new construction, single-family homes and luxury condominiums. Many prefer rental properties where they can live in the property for six months and generate rental income for the rest of the year.”
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John Gonzalez, managing broker of Engel & Völkers in Stuart, has closed several sales with buyers from Germany. “The Treasure Coast also attracts some Canadians and Latin Americans and seems to be following long-established trends,” he adds.
In Northeast Florida, Gonzalo Mejia, a sales associate with Watson Realty in Jacksonville, has seen an uptick in foreign residential and commercial investments in recent months, including buyers from Japan, Colombia and Argentina. “We’ve also seen an increase in Brazilian businesses here, from grocery stores to cafes and restaurants,” he says. “Today, Northeast Florida is also a hot market for rental investments.”
Mejia adds that residential and commercial buyers this spring are more comfortable coming to the U.S. for investment opportunities, adding, “I was talking recently to a prospect from Finland interested in a vacation home that could be rented out to generate income when not in use.”
What do buyers want?
Don’t assume that every global prospect is only interested in a luxury Florida vacation home. Today, the needs and desires of international buyers cover just about every type of property in a wide range of prices. For instance, a family from Canada or South America might purchase a multigenerational primary home or even a cluster of nearby residences for children going to college and/or other relatives.
In the Palm Beach County/Broward residential market, Alleyne is seeing strong demand from global buyers for homes in the $300,000 to $600,000 sector, including new single-family homes. “Our luxury market continues to draw buyers, but the midmarket has been our hottest sector this winter.”
Many international buyers also are interested in commercial properties or business opportunities. In the Tampa Bay area, for instance, multifamily and industrial properties are attractive, according to Yo. “Some global buyers seek out trophy assets such as Class A office buildings and high-end hotels,” she adds. “But many buyers are looking beyond the big cities and focusing on opportunities in Florida’s secondary markets.”
Rivera is seeing more South American investors expanding their portfolios to include land/agriculture, commercial and retail opportunities, in addition to residential investments. “As real estate becomes more globalized with technology supporting cross-national transactions, more businesses are seeking new bases for their international operations,” she says. “Now is a great time to start building those relationships.”
Take an active role
After a challenging two years, now is an ideal time to become an active participant in the global market. But don’t wait for international buyers and sellers to come to you. “We adapted to the pandemic, using videos and remote services to transact business,” says Alleyne. “Now, global is alive and well. So, get involved in your chosen international markets, show your worth and provide value to your international client.” #
Richard Westlund is a Miami-based freelance writer.