“Foreign Real Estate Investing Booms in Florida with 25% Growth in 2022: Chilean Investors Stand Out”

2023-04-19 00:30:00

Foreign real estate investors returned to Florida, United States, in 2022, showing a growth of 25% compared to 2021, totaling more than 9 thousand properties in the south of the state, the best year since 2019.

Within this group, Chilean investors stood out, who kept 6% of the purchases, revealed the latest annual report of the Association of Realtors of Miami.

For the CEO of Quest USA, Arturo Gana, the proximity to the language and the asset class make Florida real estate the gateway for national investors to the US market. “The Chilean seeks to invest in an asset that he can understand and the real estate issue tends to be closer to everyone,” he explained.

Sector that is also presenting attractive returns. “Today the cap-rates, the flow of rent on the value of the properties, is around 3.75%-4.5% for multifamily and 5.5%-6.25% for the office business in Miami”, explained the founder of Abaqus, José Ignacio Villarroel.

Added to the above is “a capital gain that could add another 3% to 5%,” added Gana. Meanwhile, the real estate development subsegment can reach 15% in dollars.

Argentina leads

Argentina led the list with 16% of total purchases, followed by Colombia with 13%, according to Miami Real Estate Agents.

“For Argentines and Colombians, investment in the real estate sector in Florida is something that has been around for a long time,” revealed Villarroel.

He added that, despite the growth of this business, it is aimed at high net worth people.

“You must have at least $120 million for your footing to later process a bank loan, with a dividend of US$2,000 per month,” said Owny’s manager and founder, Alan Ferszt. Added to this are taxes, asset administrator commissions, maintenance, among others.

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