Mexico, Brazil and Colombia top foreign buyers in South Florida, but US demand still rules

Developer Edgardo Defortuna and brokerage head Craig Studnicky said the foreign buyers they work with have not been deterred by the Trump administration’s crackdown on immigration.

“They already have their visa, their status or they already own property here, and they’re trying to [purchase] something better, bigger,” Defortuna, CEO of Miami-based Fortune International Group, said at The Real Deal’s Miami Real Estate Forum on Thursday.

But he said the shutdown has stalled anyone needing clearance from the consulate.

Foreign buyers are still very active in South Florida, both panelists said. Mexicans and Brazilians are leading in higher-priced purchases, while Colombians are the top buyers for investment properties in the $1 million to $2.5 million range.

Studnicky, co-founder and CEO of Aventura-based ISG World and RelatedISG Realty, said Latin Americans are increasingly looking at Broward County, specifically Hollywood, Fort Lauderdale and Pompano Beach.

The buyer pool has shifted compared to before the pandemic, from 65 to 70 percent foreign buyers and 30 to 35 percent domestic buyers, to the opposite, Defortuna said.

Also a big factor that is happening today is that most of the Latin American currencies have appreciated versus the dollar, which is very, very unusual,” he added. “Typically, the Latin American currencies lose value versus the dollar. In the last six months, pretty much all the currencies in Latin America have appreciated versus the dollar, and that makes it very attractive for them, because they know that it’s temporary, and they know that they should act now, because it’s not going to last.”

Domestic buyers have dominated the resale market, versus foreign buyers who are more attracted to new developments.

“These buildings take a long time to build, and when they’re moving here in the next year or two, [U.S. buyers] simply cannot wait,” Studnicky said.

Foreigners are also doubling down on South Florida real estate as private equity investors in new developments. Defortuna said he used to raise money for projects via hedge funds or New York-based real estate funds.

Part of the latest rush is through EB-5 approved projects, Defortuna said. Under the federal program, investors and their families receive visas for financing a development that creates a minimum number of U.S. jobs.

“Demand has been incredible,” Defortuna said. “Before, EB-5 used to be mainly Chinese or the Far East, but now the Latin American buyer really understands the process.”

The speakers also touched on the effect that Zohran Mamdani’s victory in the New York mayoral race could have on South Florida real estate. While many Florida real estate agents and brokers predict a mass exodus, others are more measured about what to expect.

“I’m not going to uproot my life, my business, my friends, my family, my kids in school, when they have all their friends, because of some 34-year-old kid, without giving New York City a chance to punch back,” Studnicky said. “New York’s got a spine. I’ve heard a lot of people say we’re going to get this huge wave of people from New York, and I think the comparable in their heads or in their hearts is what happened five years ago during Covid. Slow down. You’re going to get a bump. But I think you’re exaggerating the bump.”

Residential

South Florida

South Florida’s foreign buyer mix shifts, as Canadian demand falls