July 21, 2017
More than half of all Latin American millionaires are Brazilians which makes them a strong factor in the Miami luxury real estate market. ‘After two bad years, the up-and-down Brazilian economy appears headed toward a gradual recovery, and many wealthy Brazilians think it’s a good time to protect their money and move some capital out of the country.’ Many buyers are purchasing second, third, or even fourth luxury homes as well as income-producing properties.
Historically, investing in South Florida has led to favorable returns and some Brazilians are even looking to make Miami their year round home. ‘For Brazilians, Argentinians, Mexicans, Colombians, and Venezuelans, Miami has become the defacto capital of Latin America in the United States. It’s bilingual and bicultural, a welcoming second home that is both cosmopolitan and fun. They understand Miami’s vibe, thanks to the generations of Cubans who began flocking to the city in the 1950s and ’60s.’
Brazilian buyers typically purchase the more expensive units as they really appreciate the high end finishes and craftsmanship. This goes not only for real estate and architecture, but also for fashion and luxury brands. With the growth of designers available at Bal Harbour Shops, The Design District, and Wynwood, Miami’s luxury fashion scene is on the rise as well.
Of course, the exchange rate is a key factor for Brazilian acquisitions. ‘As the value of the Brazilian real drops against the dollar, it prompts investors to shelter their money in dollar-dominated assets like South Florida real estate’ says developer Louis Birdman. The stabilization of their economy and political turmoil seem to be looking up; however, the crime in their country still prohibits them from having the luxury of driving the type of car or wearing the watches or jewelry they would like which makes South Florida that much more desirable.
Douglas Elliman CEO, Jay Parker tells us, ‘More and more Brazilians are looking to the United States and specifically Florida, not just for a second home, but for a full relocation’.
With over 40 years combined experience in the South Florida luxury real estate market, Douglas Elliman agents, Nicholas Malinosky and Randy Ely know that many luxury buyers come from the Brazil. If you are interested in more information about the luxury market, please contact Nick and Randy today.