International investment continues to be attracted to Miami real estate, according to a recent report.
Research by Coldwell Banker Real Estate shows cross-border activity has risen due to the high liquidity in some U.S. markets. There is also a relatively large pool of high-quality assets available, compared to other markets.
"In this economy you have seen significant investments from Latin America and Mexico purchasing A class office and multifamily properties and competing very effectively with the institutions and the traditional U.S. purchasers," said CBRE's Charles Foschini, vice chairman of South Florida Markets. "Foreign investors believe in the Florida story. If you take a look at our condo inventory, they said it was a 10-year sell out period and it happened in a couple of years."
Foschini noted that the Miami residential sector has a history of strong investor interest, when it comes to private capital. As Latin American investors flock to the condominium market, other sources of foreign capital are also making their presence felt.
Rental property management companies should be prepared to deal with international property owners in the metro area, given the extent of this trend.