A Possible Economic Rift Might Affect The Miami Beach Real Estate Market As Brazilian Real Weakens
According to a recent international buyers’ convention that was sponsored by the Miami Association of Realtors and the Miami Beach Chamber of Commerce, these foreign buyers and international investors have played a highly substantial role in helping the real estate market bounce back from the after-math of the economic crisis.
For the past few years, most properties—whether private or commercial—have been purchased by countless investors all over the globe. Out of all the countries who have invested in Miami, Brazil probably holds the largest share in the neighborhood today. Because of the weakening U.S dollar and the strong exchange rate of Brazil’s Real over the past few years, a lot of Brazilians invested in the Miami Beach real estate market as well as the other parts of Miami to enjoy a huge discount on home and condo properties.
Since most of these foreign buyers are cash buyers, the Miami Beach real estate market has managed to survive because of the continuous cash flow coming from Brazilian investors. A lot of real estate experts believe that as long as there is a strong relationship between home property sales with folks from Brazil and other economically successful countries, the Miami Beach real estate will be fine.
Unfortunately, things can go bad in the future. Just this week, The U.S Dollar has gained the upper advantage over the Brazilian Real as it opened weaker compared to the past three years. Some experts believe that this might shake the Miami Beach real estate’s streak of home and condo sales if the Brazilian Real continues to weaken in the near future.
According to real estate analysts, the Latin American market is Miami’s cash cow for real estate properties at the moment. Almost 85 percent of Brazilians pay for their properties with cash.
Over the past several years, 65 percent of the property sales in Miami are made by foreign investors. As the Brazilian Real continues to struggle for the past two months losing almost 20 percent of its value versus the U.S Dollar, there is a big possibility that the nationwide real estate market will have some issues in the coming years. For now, the Miami Beach real estate economy is becoming a lot more stable by the day. Hopefully, it will stay this way for many years to come.
Joan Vonnegut
Miami Beach Real Estate
