Miami Real Estate Concerns Raised Due To Recent Drop In Value Of The Brazilian Real
The strong demand from international buyers has even managed to spur a number of major development projects which are focused on cashing in on the rapidly growing global investor market within Miami.
It has been at least two years since the Miami real estate market has been able on the receiving end of gains that have been particularly attributed to investors from Brazil who have found it to be in their best interest to acquire real estate properties within the region due toe the fact that their own currency, the Brazilian Real, had actually grown stronger in terms of its value against the US dollar.
The main benefit which thousands of Brazilian property buyers and investors found to be most attractive was the fact that they would be able to acquire real estate properties from the Miami luxury real estate market at values which would give them at least 30 to 40 percent discounts on their purchases based solely on the exchange rate differential.
Furthermore, a recorded 85 percent of Brazilian property buyers have been paying for their Miami real estate purchases in cash which basically gives them an even bigger advantage on the property market while providing significant boosts to the growth being garnered by the region’s economy.
However, there are reports which claim that the purchasing power that once made it possible for so many real estate sales transactions to push through may experience a decline in days ahead because the Brazilian Real has shown signs of growing weak against the US dollar due to the dollar’s scarcity amidst the global debt situation.
Over the past weeks, a drop in value of 20 percent against the US dollar has been recorded despite the fact that the Brazil economy continues to grow. Nevertheless, there continues to be many property buyers and investors who are still looking for opportunities within Miami.
Given the current economic situation in Brazil, there have been a series of concerns raised with regards to the influence that these foreign currency issues may have on the road to recovery for the Miami real estate property market with regards to whether or not these issues will be also create an impact on the economy’s recovery in general.
Joan Vonnegut
Brows all available Florida homes for sale, and for rent.
